Business Environment Analysis: Trampoline Price Increase and Economics

This report examines the surge in trampoline prices in the United Kingdom, attributing the increase to rising shipping costs and port congestion. The analysis delves into microeconomic concepts such as the theory of consumer demands and price theory to explain the phenomenon. The report argues that increased transportation costs and overcrowding in ports have led to a potential 40-50% increase in trampoline prices. Furthermore, the study utilizes the demand and supply theory to illustrate how changes in consumer demand and the availability of goods affect pricing. The impact of Brexit on the demand for Chinese products and its subsequent strain on shipping costs are also considered. The report concludes by emphasizing the role of various macroeconomic factors in shaping the business environment and influencing trampoline prices, highlighting the increased demand for Chinese goods and the resulting pressure on shipping capacity and costs.

BUSINESS ENVIRONMENTS

TABLE OF CONTENTS
 INTRODUCTION
 MAIN ARGUMETS OF ARTICLE
 MICROECONOMICS CONCEPTS
 MICRO ECONOMIC THEORIES
 CONCLUSION
 REFERENCES

INTRODUCTION
 The business environments are the multiple total of all the organization,
people and other forces which are outside the power of company and affects
the productions of company.
 There are the various business environment and that includes the social,
economic, legal, political, technological and environmental factors.
 This report will discuss the trampoline prices to soar 50% on shipping costs.
It is referred as a chance of a bounce in the cost of trampolines in the United
Kingdom.

MAIN ARGUMETS OF ARTICLE
 This article is based on the trampoline prices could be
soar by the 40-50 %.
 It means the company make products in United Kingdom
and increase the pricing of shipping costs because it will
also help in enhance the economic condition of country.
 The main reason of behind this is increasing high cost of
transportation and overcrowding in the ports.
 The trampoline prices can be explained with the help of
price theory because it helps in high utility of products
and services in market than it leads in enhancing the price
of products and also increase the transportation shipping
cost.

MICROECONOMICS CONCEPTS
Theory of consumer demands:
 It is related with the goods and service utilization inclination to consumption expenditure.
 According to the article, the price of products and services will increase then the cost of
shipping and congestion are also increase then it leads in affects the demand consumers.
 The demand of consumers become low due to the trampoline soar in the shipping industry.
 Changes in quantity demand of goods by consumers than it affects also its price in the
market United Kingdom.

CONT..
Price theory:
 The price theory is circumstances that price of goods and
services is determined by the economic services such as supply
and demand.
 In the price theory, the relationship between the demand and
supply influence their prices while the cost of products and
services will increase and decrease and it leads in increase and
decrease the shipping cost in the aspects of demand and supply.

MICRO ECONOMIC THEORIES
Demand and supply theory:
Demand:
 The demand and supply is theory of the microeconomics.
 This theory helps in explain the relation between the quantity of products and
services, production of goods, selling at the various prices and the quantity of the
consumers that are willing to buy the products and services at price.
 In the context of market economy, the quantity of goods and price are considering
the basic quantity the scale the products exchanges and produced.

CONT..
Supply
 The supply in the microeconomic are refers as the price of goods
and services that the producers are willing to provide at a specific
price level to the consumers.
 The various companies can supply the larger quantities of goods
on the high cost, if the products are most demanding in the
market.
 The law of supply states that the increase in the price of products
and services leads in increase in supply of goods and services. it
vice versa and other factors in the supply is remain constants.

CONT..
Structure of market:
 The market structure is based on the many aspects such as distribution of market shares, numbers of
sellers and buyers in market, and also convenient for the companies to leave and enter in the United
Kingdom market.
 In the context of article, due to the Brexit, the demand of Chinese products increase which are
soaring around the markets and it puts the huge strains on the shipping cost and capacity as well as
shipping prices are also tripled.

CONCLUSION
 As the conclusion, business environment is referring as the various aspects in the
macroeconomics such as environmental, economic, social, etc.
 This report is discussed the article in these increase the cost of trampoline due to rise in the
price of congestion and shipping.
 It also estimates that the price of trampoline is soar by the 50% and it increase in the
demands of Chinese goods.

REFERENCES
 Kapidani, N., Bauk, S. and Davidson, I.E., 2020. Digitalization in developing maritime business
environments towards ensuring sustainability. Sustainability. 12(21). p.9235.
 Adamseged, M.E. and Grundmann, P., 2020. Understanding Business Environments and Success Factors
for Emerging Bioeconomy Enterprises through a Comprehensive Analytical
Framework. Sustainability. 12(21). p.9018.
 Vines, D. and Wills, S., 2018. The rebuilding macroeconomic theory project: an analytical
assessment. Oxford Review of Economic Policy. 34(1-2). pp.1-42.
 Schmidt, M., Spieth, H., Haubach, C. and Kühne, C., 2019. Introduction of a cutting system for
optimising the cutting of trampoline components. In 100 Pioneers in Efficient Resource Management (pp.
486-489). Springer Spektrum, Berlin, Heidelberg.