Economic Policies & Globalisation: UK Business Environment Analysis

This report examines the economic policies implemented by UK policymakers to support domestic industries and mitigate the negative impacts of de-globalisation, particularly in the wake of Brexit and the Covid-19 pandemic. It explores various protectionist measures, including tariffs, free trade agreements, subsidies to UK businesses, and policies favoring domestic goods. The report also discusses the benefits of international trade, such as foreign direct investment and access to cheaper imports, alongside the disadvantages of globalisation, including unemployment, growing inequality, inflation, vulnerability to external economic shocks, and the dominance of global brands. The analysis provides insights into the strategies adopted by the UK to balance protectionism with the advantages of international trade while addressing the challenges posed by globalisation.

Assessment Strategy

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Tariffs and other trade barriers .......................................................................................................3
Free trade agreement..............................................................................................................3
Subsidies to UK businesses....................................................................................................4
Policies that give preferences to UK produced over foreign goods and services..................4
Policies that restrict Exports...................................................................................................4
Benefits of international trade................................................................................................5
Five Disadvantages of globalisation................................................................................................6
Globalisation....................................................................................................................................6
Unemployment:-.....................................................................................................................6
Growing Inequality:-..............................................................................................................6
Inflation:-................................................................................................................................7
Vulnerability to external economic shocks............................................................................7
Dominant global brands: .......................................................................................................7
Conclusion.......................................................................................................................................8
References .......................................................................................................................................9

Introduction
Protectionism derives the government policies which implied in the economy in order to
support the domestic industry by restricting the international trades. The main motive of adopting
these policies is to restrict the import to enhance the economic activity as well as could also
implied on regard to the safety concern. De-globalisation derives the movement in which an
economy are less connected with other nation due to their trade policies and decisions. In covid-
19 all the nation was disconnected due to the safety concerns. In regard to the above mentioned
concern the respected report will highlights the practises that adopted by the mentioned UK
policy maker in order to ensure it not happen again in the mentioned economy. Moreover, the
respected report will also derives the disadvantage of globalisation on the operations of UK firm
(Abban, Wu, and Mensah, 2020).
Main Body
Tariffs and other trade barriers
The policy maker plays one of the vital role in order to develop the business opportunity
in the economy. In addition to this through the adoption of effective trade policies protectionism
can be eliminated more effectively from the economy. In instance, the policy maker of UK has
performed the number of actions in their economy in order to remove the trade barriers
(Gunnella, and Quaglietti,2019).
Free trade agreement
After, the Brexit the mentioned country exits from the EU union. Hence, In order to
enhance the foreign investment and trade relation In the mentioned economy as well as influence
the relationship with other country the respected nation form the free trade agreements. The
covid-19 has raised the several issues in the economy such as increment in the unemployment
rate, collapse of businesses, increment in the national debt. Therefore, by deploying the
mentioned agreement in the economy can assist the respected nation to influence the MNCs in
their economy. By establishing the new business brings investment ans innovation which is must
needed in GDP growth. By making the deals and effective tariff plan that influence the foreign
trade. In regard to this the vat has been reduced by 5% in various goods such as home care
products, electric products etc. The standard VAT 20 % levied on all the aggregate value.
Therefore, by taking the mentioned practice the respected country is trying to encourage the

business environment in their region which will ultimately assist them in enhancing the
infrastructure (Rewizorski, , 2020).
Subsidies to UK businesses
The mentioned government grants around 9000 euro on per property to influence their
business operations which affected by the covid-19. In regard to this the respected government
has grants the 22 billion of euro after the pandemic to survive these businesses in the economy.
Moreover, still 850 million of euro is renaming which will be deployed in engaging the
businesses. As all these policies and practices plays a vital role as they provides the base to the
businesses to establish their business operations again in the mentioned economy. These funding
were granted by the government to the council in England. In addition to this the mentioned
government also created the scheme in which new investment has been deployed in order t o
support the start up in the economy. These initiative has assist in developing the new opportunity
of employment as well as also boosted the economic growth which impacted due to covid-19 and
Brexit in the initial stage. Therefore, it will assist the mentioned nation to reduce their debt by
getting the taxes from global businesses as well as domestic businesses through enhancement in
the sale (Sadiq, and Krever, 2021).
Policies that give preferences to UK produced over foreign goods and services
the mentioned government has created the effective trade policy in their economy by
devolving the effective framework. Such framework assist the country to attract the other
countries by their nil rates of import duty. In regard to this the mentioned government created the
relationship with least developed countries such as Cambodia, agola, Bangladesh, Gambia and
many more. Thorough the trade free policy the mentioned government is trying to create the
effective relationship with these countries to develop the free flow of goods in their economy as
well as welcoming the new investment and private business deals to provide the more value in
their economy through the large variety of products.
Policies that restrict Exports
The policy maker of UK has deployed the number of policies in their economy which
prohibited the exports of goods from their economy. These prohibition imposed time to time
with the custom territory of EU. The common agricultural policy has enforced on the agricultural
product in which any individual fir of organisation cannot exports to the EU members states

without giving the security. Moreover according to the animal health act 1981 any animal such
as ponies and horses from the mentioned country cannot be exported without taking the export
certificate. Certain requirement need to addressed before performing the mentioned functions
(Shah,, Hiles, and Morley, 2018).
Benefits of international trade
 Foreign direct investment- one of the major benefits of encouraging the international
trade is to get the advantage of foreign investment in the business operations. In regard to
this as the mentioned government enforced the free trade policy in their economy which
attracted the various investors and companies to infused their business operations in the
particular region. By such merger FDI the mentioned government getting the support of
high investment as well as earning the taxes on their operational activity. Furthermore,
FDI invest in the number of domestic companies of the specific region. Hence it facilitate
them in order to perform the functions even more efficiently in the operational market. In
instance there are large number of investment of FDI in the UK companies such as
Unilever, Cadbury, Tesco, Asda as well as Sainsbury's. Hence, by getting the support of
company expanding their business which ultimately increasing the employment
opportunity as well as supported the GDP growth.
 Access to cheaper imports for consumers and households- The mentioned government
has developed the efficient relationship with the various least developed country. Hence
by developing such relation the respected government created the bridge of trades in
which number of products were importing in the region at cheap prices,. Moreover, thee
products also comes with the good quality. Hence, it gives the options to the people of
UK to get the substitute of products with a different price range. Moreover, the
mentioned government imports around 26.4 billion of pharmaceuticals medicine at an
attractive prices. These medicines provides the benefits to the customers in order to
assess the large number of different brands salt with a price selection. In addition to this
the respective government also import the large number of household and electric items
from china at a justified prices such as TV, washing machine as well as various
machineries which used in industrial working. Hence, these cheap products fulfil the
requirement of economy as well as provides the assess to the customer to use the more
effective product which is lacking in the mentioned region.

Five Disadvantages of globalisation
Globalisation
It refers to describe the increasing interrelationship of the world's economies, society and
citizens brought by international trade in flow of investment, information, goods and services etc.
It is the process of interconnection and incorporation among companies, governments and public
worldwide. The global market expansion can improve economic activities of exchange of goods
and services and technological advances benefits the whole society, while damaging certain
groups. It is a social, political, cultural and legal aspects with many advantages and there are
certain drawbacks which affect the society in many ways that are discussed below in detail:-
Unemployment:-
The technology advancement reduces employment opportunities for unskilled employees
as they need proper training and development programme. In developing countries majority of
people don't have high skills. Available jobs are badly paid due to increased demand of skilled
people caused by globalisation. Many people unable to meet their basic needs and left
unemployed which result in unlawful activities such as robbery, murder, pickpocketing etc. Due
to unemployment it creates gap between rich and poor and inequality. For example with
reference to Cafepod Craft coffee, which is a SME of UK affect badly due to globalisation as the
company needs highly skilled employees to operates high tech coffee machines. People are not
skilled which needed proper training and development programmes and is a costly method for
Cafepod Craft Coffee. It reduces the employment opportunity for unskilled workers and increase
the demand for highly skilled which is an expensive method for the company as well
(YİĞENOĞLU, 2021).
Growing Inequality:-
By increasing specialisation and trade it raises the problem of inequality in all over the
world. It lead to financial instability, social and political pressure among people of country that
will restrict growth. Many countries are excluded from the benefits as they don't have approach
to basic technologies and needs and wants of public goods. It increases inequality in income and
wealth among people and countries in all over the world. For example in context to Davison
Canners, as it recruit male candidate than female which creates gender inequality among people.

It trades in bakery, desert and dairy items which also creates the problem of inequality for those
who are not specialised and skilled in this work.
Inflation:-
High demand food and strength has caused a high rises in prices of commodity. Lack of
money due to technological advancement and increased unemployment results in lower
purchasing power of people and increased demand for inferior goods. People have less
employment opportunities as the demand for skilled workers rises due to globalisation which
result in less supply of money which creates inflation at global level especially in developing
countries. For example in relation to Marshfield Bakery, it creates inflation as the demand for
inferior goods are high than superior goods due to unemployment and technological
advancement. It results in low purchasing power of goods like bakery items and highly demand
of necessary products in the market to fulfil basic needs of consumers globally.
Vulnerability to external economic shocks
Vulnerability is basically determined as possibility of being attacked or exposed with
primary and major threats in surroundings or environment. For instance, with rapid increase in
globalisation, it has given a rise to vulnerability to externals economic threats or shocks which
could lead a business environment upwards as well as downwards according to that particular
scenario of economic shock. In addition to that, it has given rise to unexpected event or situation
which directly results in impacting upon the entire economy of that particular nation.
Furthermore, it may include income disparity as well as inequality among skilled and unskilled
labour workforce residing in an particular economic nation. Moreover, these economic shocks
could lead to instability in economy which could result in higher level of uncertainty in business
environment as well as various issues and challenges for business organisations to operate in the
same (Dwyer, and Čavlek, 2019).
Dominant global brands:
With the access to foreign markets facilitated by globalisation, it has given a rise to
dominance of global brands in that particular economic nation. For instance, with global
expansion into foreign economic market, a global business organisation initiates operations and
activities in order to serve customers in that particular country. Moreover, these large business

organisations operates upon large scale operation which facilitates them in serving a large
amount of customer base which results in being a barrier to growth of local and small scale
businesses. In addition to that, it further results in dominance of these global brands in that
specific economic nations. Furthermore, small scale and local businesses in that area mould their
operations and activities according to these large business organisations in order to survive in
consumer market. Therefore, this issues has been considered as one of the major issues
associated with increase in globalisation (Dalgliesh, 2018).
Conclusion
From the above report assessment, it could be concluded that protectionism and globalisation
results in impacting upon an economic nation. For instance, it has been determined that it has
positive as well as negative impact according to that specific situation and scenario of that
particular economy. In addition to that, Inequality, dominance of global brand, vulnerability to
economic shocks have considered as major issues associated with globalisation. Furthermore,
this report is highlighting insightful information of various aspects including free-trade
agreements, subsidies to UK businesses, policies that restricts export, and benefits of
international trade in order to provide efficient understanding of the same.

References
Books and Journals
Abban, Wu, and Mensah, 2020. Analysis on the nexus amid CO2 emissions, energy intensity,
economic growth, and foreign direct investment in Belt and Road economies: does the
level of income matter?. Environmental Science and Pollution Research, 27(10),
pp.11387-11402.
Gunnella, and Quaglietti,2019. The economic implications of rising protectionism: a euro area
and global perspective. Economic Bulletin Articles, 3.
Rewizorski, , 2020. Multilateralism in peril? Murky protectionism and the populist backlash
against globalisation. In The Future of Global Economic Governance (pp. 73-86).
Springer, Cham.
Sadiq, and Krever, 2021. Does tax policy fit in the portfolio of COVID-19 responses?. Pacific
Accounting Review.
Shah,, Hiles, and Morley, 2018. How do oil prices, macroeconomic factors and policies affect
the market for renewable energy?. Applied energy, 215, pp.87-97.
YİĞENOĞLU, 2021. The Turkey-UK Free Trade Agreement in Terms of Economic
Diplomacy. Insight Turkey 2021/04: Turkey's Grand Strategy, p.193.
Dalgliesh, B., 2018, May. Towards a Critique of Globalisation. In Proceedings of the XXIII
World Congress of Philosophy (Vol. 51, pp. 63-74).
Dwyer, L. and Čavlek, N., 2019. Economic globalisation and tourism. In Handbook of
Globalisation and Tourism. Edward Elgar Publishing.