School of Business: International Business - UK Analysis Report

This report presents a comprehensive analysis of the United Kingdom's business environment, addressing key aspects relevant to international business. It begins with basic country data, including its developed status, area, natural resources, government system, and legal framework. The report then delves into economic indicators like GDP, GDP per capita, trade partners, inflation, interest rates, and exchange rates. Social and cultural indicators, such as religion, literacy rates, ethnic groups, and Hofstede's cultural dimensions are also examined. Business indicators, including tax rates, ease of doing business, and procedures for opening a business, are analyzed alongside health and welfare metrics like infant mortality and unemployment rates. Technology indicators, including internet and telephone usage, are also considered. The analysis concludes with an overall assessment of the UK's business climate, highlighting its strengths and potential challenges for businesses. The report includes a reference list of sources used for the analysis.

Running head: ANALYSIS OF UK
Analysis of UK
Name of the Student:
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ANALYSIS OF UK
Table of Contents
Basic Country Data..............................................................................................................3
Economic Indicators............................................................................................................4
Social and Cultural Indicators.............................................................................................5
Business Indicators..............................................................................................................7
Health and Welfare..............................................................................................................8
Technology Indicators.........................................................................................................8
Overall analysis...................................................................................................................9
Reference list.....................................................................................................................10

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ANALYSIS OF UK
Basic Country Data
a. Developed (Advanced), Emerging, or Undeveloped (Developing)?
UK is a developed country.
https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
b. Area of country in kilometres square
243,610 sq km is the total area of the country. https://www.cia.gov/library/publications/the-
world-factbook/geos/ku.html
c. Natural resources, crops and industry
Coal, Limestone, Petroleum, chalk, Natural gas, Gypsum, China Clay, Silica, Iron ore, Rock salt,
Tin, Lead, Gold and Silver are the natural resources of the country.
https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
Cereal, Barley, Wheat, Potato, Oat, Cabbage and Sugar beet are some of the crops of the country.
Some of the major segments of the British industry are Manufacturing, Energy, construction and
mining. https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
d. Government System
The government of UK is constitutional monarchy and a commonwealth realm.
https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
e. Legal System
The head of the state of the country is a monarch who is neutral on the context of political.
https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html

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ANALYSIS OF UK
f. Are laws obeyed and enforced?
Yes, the laws in the country are obeyed and enforced by the states and the people of the country.
https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
g. What are the laws regarding foreign ownership of business
At present the company do not hold any kind of laws which binds the Foreign Direct investment
in the country. https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
h. COFACE Country Risk rating
The economic risk of the country is very low and in the aspect of political and financial system
of the country the risk is very low. www.coface.com
i. Global Innovation Index
The global innovation score of UK is 61.3. https://data.worldbank.org/data-catalog/world-
development-indicatorshttps://data.worldbank.org/data-catalog/world-development-indicators
j. Global Competitiveness Ranking
UK is at the 9th position of the Global Competiveness Ranking. https://data.worldbank.org/data-
catalog/world-development-indicatorshttps://data.worldbank.org/data-catalog/world-
development-indicators
k. Corruption Perception Index
In 2019 the Corruption Perception Index of the country was 77. https://data.worldbank.org/data-
catalog/world-development-indicatorshttps://data.worldbank.org/data-catalog/world-
development-indicators

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ANALYSIS OF UK
l. Are there Wars, unrest or political unrest?
At present there are no wars or political unrest in the country. https://data.worldbank.org/data-
catalog/world-development-indicatorshttps://data.worldbank.org/data-catalog/world-
development-indicators
Economic Indicators
a. Gross Domestic Product (GDP) in $US per annum
2.62 lakh crores USD is the GDP of UK. www.xe.com
b. GDP per capita in $US per annum
39,720.44 USD is the GDP of UK. www.xe.com
c. Main Imports/Main import partners
Germany, China and United States are the main import partners of UK.
https://tradingeconomics.com/united-kingdom/imports
d. Main Exports/Main export partners
United States, Germany and Netherlands are the main export partners of the country.
https://tradingeconomics.com/united-kingdom/imports
e. Inflation rate %
2.1 percent is the inflation rate of UK. https://www.statista.com/statistics/306720/inflation-rate-
forecast-consumer-price-index-cpi-united-kingdom-uk/
f. Interest rate % (Prime Lending Rate)

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ANALYSIS OF UK
0.75 is the interest rate of the country. https://tradingeconomics.com/united-kingdom/interest-
rate
g. Exchange rate (1KD = XX)
1.29 USD is the exchange rate of UK pound. www.doingbusiness.org
h. Annual GDP Growth Rate Actual (%)
1.4 percent is the Annual GDP Growth Rate. www.doingbusiness.org
Social and Cultural Indicators
a. Main religions? %
59.5 % of the people in the country follow Christian religion, 25.7 % of the people of the country
do not follow any kind of religion and the remaining people follow Hinduism, Islam, Sikhism,
Buddhism and Judaism namely. https://globaledge.msu.edu/countries/united-kingdom
b. Adult literacy rate Actual (%)
The Adult Literacy rate of the country is 99 percent.
https://www.macrotrends.net/countries/GBR/united-kingdom/literacy-rate
c. School life expectancy in years
17.4 years is the school life expectancy of UK. http://hdr.undp.org/en/countries
d. Ethnic groups? %
There are a total 18 ethnic groups in the country. https://globaledge.msu.edu/countries/united-
kingdom
e. Hofstede’s Power/Distance Index

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ANALYSIS OF UK
The power distance index of UK is 45. https://geert-hofstede.com/national-culture.html
f. Hofstede’s Masculine/Feminine Index
The Masculinity index of the country is 66. https://geert-hofstede.com/national-culture.html
g. Hofstede’s Uncertainty/Avoidance Index
The uncertainty and avoidance index of the country is 35. https://geert-hofstede.com/national-
culture.html
h. Hofstede’s Individualism/Collectivism Index
The individualism index of the country is 89. https://geert-hofstede.com/national-culture.html
Business Indicators
a. Tax on business profits %
18 percent is the tax which are applied on the business profits of the country.
www.doingbusiness.org
b. Tax rate ranking - Doing Business
19 percent is the tax rate ranking of the UK. www.doingbusiness.org
c. Ease of doing business ranking
UK is in 6th position of the business ranking. www.doingbusiness.org
d. Procedures/days to opening a business
• Legal issues must be seen before starting any kind of business in the country.
• A perfect business plan needs to be written out keeping in mind the budgets.

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ANALYSIS OF UK
• The legal structure of the business plan must be planned out in a proper way.
• The name of the business and the address must be pointed out in a proper way keeping it
authentic.
• Registration with HM revenue and customs must be done. www.doingbusiness.org
e. Problems doing business?
 Brexit negotiations might be a problem for a new company.
 Resourcing might be a problem for a new company
 Getting electricity and getting credit might be a bit problematic.
 Protecting the investors might be a challenge.
 Cultural barriers in the country might be a problem. www.doingbusiness.org
f. Coface Business Climate Rating (A,B,C,D)
The Coface Business Climate Rating of the country is A. www.coface.com
Health and Welfare
a. Infant mortality rate per 1000
The infant mortality rate of UK is 3.7. http://hdr.undp.org/en/countries
b. Unemployment rate %
4.0 percent is the unemployment rate of UK. http://hdr.undp.org/en/countries
c. Life expectancy in years
Life expectancy for the males in the country is 79.5 years and 83.0 years for females.
http://hdr.undp.org/en/countries

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ANALYSIS OF UK
d. % of population below the poverty line
0.2 percent of the people in the country are below poverty line. http://hdr.undp.org/en/countries
Technology Indicators
a. Telephones - Actual
Telephones are a major component of communication in the country and they are highly
developed. http://news.bbc.co.uk/1/hi/country_profiles/default.stm
b. Internet – Actual
The broadband speeds of the country ranges from 8 Mbps to almost 1Gbps.
http://news.bbc.co.uk/1/hi/country_profiles/default.stm
c. Information & Technology Ranking
UK is very much advanced in the case of information and technology.
http://news.bbc.co.uk/1/hi/country_profiles/default.stm
Overall analysis
The economy of UK has improved a lot over the years and it has been ahead than other
European countries. At present looking at the economic indicators of the countries it can be said
that the country is one of the best places all around the world to start business. The low cost
which is associated with the setting up if new business and the various other factors such as the
GDP of the country will be very much helpful for the existing business to expand in the country.
The business in the country will also be getting employees easily as the literacy rate of the
country is massive. The culture and the heritage of the country is very much helpful foe existing
companies to grow in the country and it will be very easy to nee business to start in the company.

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ANALYSIS OF UK
The various ways by the help of which the economy of the country has become stable is
optimum for any kind of business to grow. The literacy rate of the country shows that the people
of the country are readily available for doing services and the Hofstede data which has been
found out about the country shows that the country is very much favourable to the conduction of
business.

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ANALYSIS OF UK
Reference list
Anon, 2020. [online] Available at: https://geert-hofstede.com/national-culture.html [Accessed 12
Feb. 2020].
Cia.gov., 2020. Middle East :: Kuwait — The World Factbook - Central Intelligence Agency.
[online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html
[Accessed 12 Feb. 2020].
Coface.com., 2020. COFACE : Credit insurance, Debt Collection, Factoring, Business
Information, Bonds, Economic studies.. [online] Available at: http://coface.com/ [Accessed 12
Feb. 2020].
Data.worldbank.org., 2020. Data Catalog | Data Catalog. [online] Available at:
https://data.worldbank.org/data-catalog/world-development-indicatorshttps://
data.worldbank.org/data-catalog/world-development-indicators [Accessed 12 Feb. 2020].
Globaledge.msu.edu., 2020. United Kingdom: Introduction. [online] Available at:
https://globaledge.msu.edu/countries/united-kingdom [Accessed 12 Feb. 2020].
Hdr.undp.org., 2020. | Human Development Reports. [online] Available at:
http://hdr.undp.org/en/countries [Accessed 12 Feb. 2020].
News.bbc.co.uk., 2020. BBC NEWS | Country Profiles. [online] Available at:
http://news.bbc.co.uk/1/hi/country_profiles/default.stm [Accessed 12 Feb. 2020].
Statista., 2020. UK inflation rate forecast 2019-2024 | Statista. [online] Available at:
https://www.statista.com/statistics/306720/inflation-rate-forecast-consumer-price-index-cpi-
united-kingdom-uk/ [Accessed 12 Feb. 2020].

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ANALYSIS OF UK
Tradingeconomics.com., 2020. United Kingdom Imports | 1955-2019 Data | 2020-2022
Forecast | Calendar | Historical. [online] Available at: https://tradingeconomics.com/united-
kingdom/imports [Accessed 12 Feb. 2020].
World Bank., 2020. Doing Business. [online] Available at: https://www.doingbusiness.org/
[Accessed 12 Feb. 2020].
Xe.com., 2020. XE - The World's Trusted Currency Authority: Money Transfers & Free
Exchange Rate Tools. [online] Available at: https://www.xe.com/ [Accessed 12 Feb. 2020].