Impact of Market Imperfections & UK Government Policies on Business

This report examines the consequences of market imperfections on entrepreneurial activities, focusing on the London Housing Market. It scrutinizes the effects of market failures on labor and financial products, highlighting issues such as flaws in pricing mechanisms, externalities, and information asymmetry. The report also provides a rational construction of the UK government's interference through industrial policies, subsidies, and economic strategies aimed at fostering stable employment, enhancing earning capacity, and upgrading infrastructure. Furthermore, it interprets UK government economic policies in the business world, emphasizing financial allocation, cost-benefit analysis, and regulation to stabilize and distribute functions within the economy. The study concludes that market limitations can disrupt operational mechanisms, and government intervention is crucial for stabilizing prevailing scenarios and fostering collaboration with businesses.

BUSINESS
ECONOMICS

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
Scrutinise the consequences of market imperfections over the entrepreneurship activities.....................3
Investigate the outcomes of market catastrophe on labour and financial products...................................4
A rational construal of the interference of the UK government in respect to the strategies.....................5
Construing the interpretation of the UK government policies of economics in the business world.........6
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................8

INTRODUCTION
The factors contributing towards the enactment of the management and the expansion of
the strategic environment of the businesses is thus the concern of the subject matter. The
considerations towards the adoption of the accurate form of market structure is indeed an
imperative facet (Alomani, Baptista and Athreye, 2022). The construction of the study will be
based upon the market failure of the London Housing Market. the relative terminologies
affecting the imperfections that are present in the economy will be elucidated in the study. The
influence upon the entrepreneurial strategies will also be enumerated according to the conductive
research. The aspect in regards to the interpretation of the UK governmental policies in respect to
the economy of the country will also be highlighted along with the explanation towards shaping
the decisions affecting the business established in the country.
Scrutinise the consequences of market imperfections over the entrepreneurship activities.
The development of the arguments in favour of the kinds of market imperfections can be
analysed on the basis of the flaws in the pricing mechanisms, affects of the externalities on the
market and the asymmetry of the information presented Infront of the society. This can lead to
the degradation of the scope of trading in the market as a whole. The domain considering the
entrepreneurial opportunities can further be explained in an exclusive manner.
 The standards that are predetermined by the society as a memorandum must be
articulated in order to avoid the turbulences in the external environment. The fluctuation
in the demand and supply factor can influentially affect the schemes issued in interest of
the entrepreneurs. In regards to the London Housing Market, the impassiveness towards
the instabilities resulted in significant issues which endangered the functioning of the
corporation (Contreras and et. al., 2022).
 The violations resulting because of the failures of the precisions present in the
environment can result in the variabilities in the sustenance of the firms. The asymmetry
of the information provided to the clients can result in the downfall of the firm (Cei and
et. al., 2022). London Housing Market faced severe consequences because of this
particular facet. The shortage in facilitating the demand of the housing in the recent times
has caused a damage to the reputation of the firm.

 The cognition in regards to the limits of the individual can affect the system in a
significant manner. The capacity to acquire by the clients may become a form of
hindrance in the functioning of the factors influencing the market. The variability in the
prices that are offered by the companies can affect the rationality of the consumers
because of the lack of the financial help from the market.
 The rents that have to paid by the newly established firms can become a serious hurdle in
the maintenance of the market positioning of the organisations. This can influence the
profit margin that has been set by the entrepreneurs. The external fluctuations in the rates
can further prove be an obstacle in the growth of the venture.
Investigate the outcomes of market catastrophe on labour and financial products.
LABOUR FAILURE IN THE MARKET: Like any other market, the section relevant to this
scope can also experience major shocks due to the unavoidable presence of the elements of the
gaps in the skills, immobility of the labour and the presence of the inequality in terms of the
distinguished pay that are challenged by the companies (Choi and et. al., 2022). The training and
the development of the personnel is sometimes neglected which can prove to be a dangerous
stage for the smooth functioning of the businesses. The insufficiency in respect to the literacy of
the citizens and the development of the skill-based programmes being stricken off from the
charts, can severely affect the position of an economy. Another crucial aspect influencing the
failure of the market is the immobility of the proficient workforces between the regions. This can
happen due to the unwillingness of the labours to make a shift because of the inadequacy of the
facilities that are provided to them by the companies. The lack of equality in terms of the
renumerations can also be present in the market structure which can prove be a catastrophe in
respect to the gender discrimination. London Housing Market has avoided the circumstellar
evidence regarding this facet and thereby has experienced a substantial loss in the market
FINANCIAL FAILURE: There are certain situations when the markets can fail tremendously
in respect to the pecuniary room of the businesses. The price mechanisms don’t work in
accordance to the determined strategies. This can critically affect the financial position of the
enterprises. The allocation of the goods and the services can prove to be irrelevant to the present
market conditions. The benefits accruing to the adoptions can fail to serve the actual purpose of
the establishment. The depreciation of the assets at a faster pace can become a hurdle for the

ventures (Grima, Özen and Gonzi, 2022). The undervaluation of the properties acquired by the
London Housing Market proved to be a failure for the operations of the company. The
overpricing of the housing facilities that were being offered by the company failed at the market,
resulting in the ultimate damage of the financial position on the marketplace. The speculation in
regards to the anticipation of the gains and the loss can influentially disturb the administration of
the company. The selling made in terms of the false assumptions can therefore result in shocking
disruptions furthermore. These interruptions can thereby result in the fall in the real output,
increase in the levels of unemployment, decrease in the pay margins and even can surrender the
businesses towards the bankruptcies (Stappers and Andries, 2022). The dominance of certain
biggies in the market can further make it complex, the collusion and the undertakings stimuluses
the scope of the margin of the profit generations features of the companies. This can result into a
crisis which can force the government to take considerable actions to compensate the losses due
to these financial shocks. Thus, the impact of the imperfections can harshly harm the business of
the multinationals.
A rational construal of the interference of the UK government in respect to the strategies.
The motive of the Industrial Policy was to sustain the competence by patronaging the
organizations to make stable employments and augmentations in respect to the acquiring power
of individuals all through the UK with interest in abilities, businesses and framework. Making
and supporting position stays the public authority's focal financial concentration yet assisting
with driving development in existing, new and arising enterprises is likewise really important.
The difficulties of low efficiency, slow development and powerless business venture remain.
Subsequently, existing strategy mediations will probably stay at the core of a restored way to
deal with modern methodology, and we might have to go further to recuperate from the effects of
Covid-19 and convey occupations (Holmqvist, 2022).
.
 The intervention of the government can provide a sense of respite along with certain
implications as well. The provisions in terms of the subsidies, relief in the payment of
taxes and other indirect help provide an aid to the organisations. This can influentially
affect the prices of the housing in regards to its allocation. This guarantees a minimum
level of provision from the side of the governing bodies.

 The transformation of the economy through the vison of the UK government has laid its
foundation in the terms of crucial and essential foundations i.e., the special significance
towards the creative aspect of the businesses, pacing up the earning capacity of the
people, upgradation in the infrastructural competence of the nation and also prospering
the communities residing in the state (Quigley and Patel, 2022).
 The policies put forward by the governing bodies focuses on the enhancement in the
investment sector of the economy with a vison of upgradation in the Research and
Development department of about 2.4% of the total GDP by the year 2027. The
introduction of varied challenging programmes acerating the value of the innovation in
another facet that has been considered. The launch of certain subsidised programmes for
the benefits of the start-ups as well as the developed establishment is also highlighted in
the coming prospects (Maleș, 2022).
 The vison to become the most innovative economy in respect to providing certified jobs
to the citizens has been the major priority of the government of the UK. This has to be
achieved in order to ensure the growth and prosperity of the country as whole. The
industrial strategies that have been formulated thus admires the interests of the companies
to drive the productivity through an intribution of effective communique.
Construing the interpretation of the UK government policies of economics in the business world
In respect to the London Housing Market, the furnishing of the influences by the
measures of the government attempts to rectify the economic variations through the advancement
of the certain policies in the market in order to reshape the financial situation of the business
organsiation. This is reflected through the national budget in order to establishing an
authoritative control over the stabilizing and distributing functions operating in the pecuniary.
 The major concern of the government is to allocate the finances in definite manner to
uplift the economic condition of the country (Patel and Rietveld, 2022). The cost-benefit
analysis in relation to the budget has to be dived in accordance to the activities that are
performed in the market. the distribution is based upon the attempts that ahs been made to
focus upon the forces operating in the economy.
 The costs that are associated with the facets is duly considered according to the benefits it
encompasses along with the drawbacks. When the ratio between the two is considerable
and satisfactory, the analysis is suitable and thus can taken into consideration. The

investments made in respect to the London Housing Market, thereby was crucial for the
company and the certainties in the market because of the intervention of the government
has to be taken into account to furnish the determined jobs. The alternative decisions
which are thereby imperative to take in order to prevent the mis haps had to be perfectly
articulated at the time of the failure of the strategies opted at first (Pribadi and
Agustiawan, 2022).
 The regulation is also necessary to contemplate the restrictions imposed upon the market
structures specifically in regards to the monopolies and the oligopolies to cumbersome
the prices that exploits the consumers in number of ways. London Housing Market can
take help of this function to intensify the efficacy of the ownership and thereby form a
balance between the performance and the manipulation of the ability of the patrons.
CONCLUSION
An inference can thus be made that the market limitations can duly take place in the
market and thereby can cause fluctuations in the economy which can disrupt the mechanisms of
the operations. The failure in respect to the labor market and as well as the fiduciaries are also
elucidated in the study with the appropriate causations of such imperfections. The intervention of
the governing bodies to stabilize the prevailing scenarios are also explained with regards to the
London Housing Market and collusion thus has been formed between the two.
REFERENCES
Books and Journals

Alomani, A., Baptista, R. and Athreye, S.S., 2022. The interplay between human, social and
cognitive resources of nascent entrepreneurs. Small Business Economics, pp.1-26.
Cei A, and et. al., 2022 Jan;126(2021).
Choi, Y.R., and et. al., 2022. Innovation ambidexterity, resource configuration and firm growth:
is smallness a liability or an asset?. Small Business Economics, 58(4), pp.2183-2209.
Contreras, S., and et. al., 2022. Bank failures, local business dynamics, and government policy.
Small Business Economics, 58(4), pp.1823-1851.
Grima, S., Özen, E. and Gonzi, R.D. eds., 2022. Insurance and Risk Management for
Disruptions in Social, Economic and Environmental Systems: Decision and Control
Allocations within New Domains of Risk. Emerald Group Publishing.
Holmqvist, M., 2022. Elite Business Schools: Education and Consecration in Neoliberal Society.
Routledge.
Maleș, D., 2022. Planning the Training of the Accountancy Apprentices within the Accounting
Companies. CECCAR Business Review, 2(12), pp.3-11.
Patel, P.C. and Rietveld, C.A., 2022. Does globalization affect perceptions about
entrepreneurship? The role of economic development. Small Business Economics, 58(3),
pp.1545-1562.
Pribadi, H. and Agustiawan, S., 2022. Succession Intention in Continuing Family Business in
Indonesia during the Covid-19 Pandemic. INTERNATIONAL RESEARCH JOURNAL OF
BUSINESS STUDIES, 14(3).
Quigley, N.R. and Patel, P.C., 2022. Reexamining the gender gap in microlending funding
decisions: the role of borrower culture. Small Business Economics, pp.1-25.
Stappers, J. and Andries, P., 2022. The role of distinct ADHD symptoms for pre-entry
entrepreneurial behavior: when intentions do not translate into action. Small Business
Economics, 58(3), pp.1441-1457.