...Economics The UK Economy and Globalisation WHY COUNTRIES TRADE GLOBALISATION Globalisation | Expansion of world trade in goods and services leading to greater international interdependence | Globalisation usually leads to: * An increase in outsourcing * Large sums of money being transferred from country to country for financing When did Globalisation First Start? There are three major stages of globalisation: Stage | When? | What? | 1 | 1870Increase in international trade | * New technology helped improve transport * Reduced cost of moving goods between countriesEnded in 1920s as countries tried to protect home industries against foreign competition so reduced imports. | 2 | 1945 End of Second World War | * Countries keen to rebuilt economies * Led to rapid expansion in world trade * International Monetary Fund and World Bank founded * Promoted trade and economic cooperation | 3 | Now | * Increase in trade and capital flows between countries * Growth of huge companies | Factors Contributing to Globalisation Improvements in transportation | Cost of transporting goods decreased (eg: due to containerisation) meaning goods can be traded competitively worldwide | Improvements to ICT | Communications are much faster and cheaper – payments can be sent between countries immediately at a low cost. Promotion of products via the internet to a worldwide market also increases world trade. | Rising real living standards |...
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...What are the UK’s major exports and imports? Who are the UK’s major trading partners? What trade theories can explain these patterns? In order to understand UK’s position in world trade, what its exports and imports are, and which its major trading partners are, the history of its economy and position in world trade has to be contemplated prior. The structure of the British economy has been transforming through time, in addition to the nation’s trade regarding both its goods and services. Britain was the first industrial nation; this explains the dominion it had in world trade. As this is the case, trade theories help explain the nation’s pattern of trade, considering its offer in knowledge and technology. Since the start of the 1900s Britain was capable to settle its debt on a multilateral basis. For example, UK would resolve part of its large deficit with the USA through the surpluses it earned with “Empire Countries”, such as India, with whom the USA, had deficit. By the Nineteenth century, Britain’s major sources of imports in order of significance were: The United States with cereals, meat and cotton; India with tea and wheat; Australia and South Africa, with wool and meat, and Canada with grain, timber and flour. UK’s trading partners were often countries it had colonial links. Its location in north-western Europe also accounted for some strategic trading partners, which were: France south across the English Channel; the Republic of Ireland west across the Irish...
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...have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO 3 Understand the behaviour of organisations in their market environment | 3.1 | Explain how market structures determine the pricingand output decisions of businesses | | | | 3.2 | Illustrate the way in which market forces shapeorganisational responses using a range of examples | | | | 3.3 | Judge how the business and cultural environmentsshape the behaviour of a selected organisation | | | LO4 Be able to assess the significance of the global factors that shape national business activities. | 4.1 | Discuss the significance of international trade to UK business organisations | | | | 4.2 | Analyse the impact of global factors on UK business organisations | | | | 4.3 | Evaluate the impact of policies of the European Union on UK business organisations. | | | Learner declaration | I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: 17/12/2015 | In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades (Tutor: please delete grade descriptors that does not apply to your assignment; other exemplar indicative...
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...Policy on the world trade in agricultural goods. b) Evaluate the implications of a significant reduction in barriers to the trade and services for the global economy. 3)a) In 2002 the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK's unemployment rate was lower in these countries. b) To what extent might the pursuit of full employment conflict with other macroeconomic objectives? ------------------------------------------------- Exemplar: 1)a) 'The competitiveness of the Uk's manufacturing sector has declined in recent years'. Discuss the factors which may have affected the international competitiveness of UK goods. b) Evaluate the methods by which the UK's international competitiveness could be increased. 2)'Trading blocs are becoming increasingly important to the world economy' a) Discuss the benefits to a country belonging to a trading bloc. b) To what extent might the policies of the WTO conflict to those of trading blocs? ------------------------------------------------- June 02 1a) Examine the factors which have led to an increase in interdependence between countries in the world economy. b) Assess the impact on the global economy of the continued use by trading blocs of measures which restrict free trade. 2a) Examine the impact of falling oil prices on the economies of the European Union. b) Evaluate the potential costs and benefits to the UK economy of a decision...
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...Guide to International Trade Supporting your global ambitions Contents Foreword Section 1: Section 2: Section 3: RBS: Supporting your business Research insights Overview to trade International trade explained A guide to transportation A guide to trade documentation A guide to payment methods A guide to bonds and guarantees A guide to foreign exchange What the experts say Overcoming the barriers to foreign trade – top tips from RBS UK Trade & Investment (UKTI) – why businesses should look to export British Chambers of Commerce – finding new markets British Exporters Association Key contacts Supporting your international trade ambitions, whatever your business Index 1 3 7 13 14 19 22 28 32 34 37 39 42 45 48 51 52 55 Section 4: Section 5: Section 6: Foreword The current economic environment has certainly presented UK businesses with some challenges, but it has also offered immense opportunity as well. The appeal of overseas markets has never been greater and, for British companies looking to buy or sell outside the UK, now is undoubtedly the time to explore that opportunity. That’s why I’m delighted to share this Guide to International Trade with you. It contains a wealth of useful information about how to trade internationally, including insights into research we have conducted among UK businesses, and informative articles from prominent trade bodies such as UK Trade & Investment, the British Chambers of Commerce and the British Exporters Association. Our recent...
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...structure determine the pricing & output decision: 6 Market force : 6 Relationship between Market force & Organizational response 6 Impact of organization performances by various Types of market force 6 Cost pressure 7 Information demand 7 Customer responsiveness 7 How the business and cultural environments shape the behavior of a selected organization: 8 Business environment 8 Cultural environment 8 Objective of business and cultural environment 8 International Trade: 9 Production cost 9 Material 10 Extend market 10 Global Factor: 10 Political factor 11 Economical factor 11 Social factor 11 Technological factor 12 European Union: 12 Rules & regulation 13 Tax & tariff 13 Support 13 Establishing the rules of trade 14 Taxation policy 14 Employment policy 14 Inflation policy 14 References: 15 Introduction: There are many crisps company in the world, from them WALKER is one of best & largest crisps company in the world. It’s a UK based company who operate their business most of the country of the world. WALKER gets recognition through manufacturing crisps. WALKER contributed 47% of British crisps market. They are producing about 11 million bags of crisps per day & 800 tons of potato as raw material (Bamford,2012). Aim of the assignment: In this assignment we have choose an organization like Walker. And we will discuss the purposes, environmental effect & influencing factor of the organization...
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...Running head: International Financial Markets International Financial Markets Unit 1 Individual Project Michelle McCollough June 8, 2007 American InterContinental University Abstract The below paper will discuss starting an operation in a foreign country. I will compare and contrast the United Kingdom and Hong Kong. I will also explain which country would be best to begin a business in. International Financial Markets Introduction Acme is planning on having a greenfield production facility overseas. The two foreign countries that I have decided to compare for starting business in is the United Kingdom, which is part of the European Union and Hong Kong. Hong Kong is not part of the European Union. I will first analyze the UK and then Hong Kong. Analysis of the United Kingdom (UK): The United Kingdom of Great Britain and Northern Irelane is a state that consists of the nations of England, Scotland, Wales, and Northern Ireland. This is also under the UK sovereignty and is not apart of the UK itself, however are the “Crown dependencies of the Channel Island and the Isle of Man.” The said dependencies seek their own policies over taxes, employment, education, and health. They are subjected to UK control on matters such as defense (Doing Business in the UK, 2005). The UK has an island of 242,500km2. The UK’s population in 2002 was 59.2 million and in 2006 the population was 60.6 million. The languages...
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...Q1: Balance of payment: When a country trade with another countries, there are records of all that transaction known as payment of balance, the benefit of having such a record is to know how much money is spent on import and export in goods and services. BOP consist in: 1- Capital account: monitoring of the short term and long term transaction among the UK and the whole world in (saving and investment) with a surplus of 100 million in 2012 and it contains: * Direct investment: when an invest take a place outside the country (abroad) the record of transfer of ownership it’s called a direct investment with amount of 48.3 billion in 2012. * Portfolio investment: it’s all the investing in shares and bonds, and all the interest a dividends received from it concern to be in/out flow to the country, which it increased to 118.8 in 2012. * Other investment: includes net government borrowing from foreigners, and short-term. * Official reserve: the government used of gold and currencies held by the bank 2- Current account: keeping a record of all transaction in goods and services in and out of UK called current account which it’s was a deficit with over 59.8 billion in 2012. Which includes: * Trade in goods: in the oil section for in 2012 UK has been a net exporter for it. However, UK always import goods then it export which made it a trade deficit of 12.56 (-) billion in 2012. * Trade in services: it’s what the country provide for their people...
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...What, if anything can trade Unions’ do to challenge the employment strategies of multinational strategies of multinational companies? In the 1990’s globalization took the world by storm, it overcame into the way businesses were run, the products and goods we use and employment used. Globalization allowed good to be traded at an international level, increased the level of Foreign Direct Investment (FDI), increased the number of international transactions and trade barriers decreased, making it easier and cheaper to buy goods from abroad (Ferner, 2003). Not only has globalization seen the increase of migrants workers but has also increased the number of Multinational Companies (MNC) and many of them have moved production from their home country to less developing countries, for cheaper labour and looser regulations. The deregulation of working conditions, demographics and labour markets as well as cheaper labour will lead to companies moving their work away from the UK and damage the economy (Williams and Adam-Smith, 2010). As Moody (1997) states “It will increase pressure to cut costs in order for businesses to stay competitive...pressure on labour costs”. Globalization has caused an increase in the number of mergers and acquisitions and has in affect created and introduced more MNC, it has allowed companies to move labour and production to where labour is cheaper. Trade Unions’ have been at the forefront of the debate of whether globalization is a good thing. Due to MNC operating...
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...Free Trade Free trade may also be called International Trade. Free Trade occurs when goods and services are traded between countries without the use of import controls. For most of the late twentieth century, the prevailing wisdom has been that free trade can lead to improvements in economic welfare in the global economy. However this has not prevented regular trade disputes between countries - often when one country feels that unfair trade practices have caused the benefits from trade to become distorted. Free trade is very important to all developed countries as there are likely to be economies of scale - when producing for larger markets (foreign markets), average costs of production will be lower. There is likely to be a wider choice of products for consumers to buy and prices are likely to be lower because of lower costs. There is likely to be more efficient use of resources because countries will specialise in producing goods and services where opportunity cost is lowest, i.e. countries will produce goods and services that they can make more efficiently. There is likely to be an increased global output of goods and services without using more inputs. Another reason for importance is there is likely to be a higher standard of living for consumers. There may be political benefits because dealing with other countries will improve relationships. Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark...
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...What is the problem of collective action in International Trade and what is the way to solve it in Global Political Economy? The problem of collective action in international trade is a problem of “prisoners dilemma” or “free riding”. There are also two different points of view that become applicable while trying to understand this problem – a liberal view and a realist view. The liberal view believes that economics is the most important factor when it comes to international trade and if countries take collective action it will be for economic reasons. On the other hand the realist view believes that economics does not drive collective action in trade but politics does. Collective action in the context of international trade can be defined as free trade where countries do not put barriers for flow of goods and services and they work together to remove these barriers to ensure greater efficiencies. This lack of barriers is not the normal course of actions as pointed out by realists who believe that all nations act in their selfish interest and unless they are an export oriented economy with greater export than import, they will have very little incentive to remove barriers. But, it is believed by realists that if multiple countries come together the incentive to remove barriers is higher. There is always a conflict going on for national states. They want to promote free trade as everyone agrees that free trade will benefit them but they do worry about their national sovereignty...
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...which strategies they use to achieve these objectives. There are some internal and external parties involved with large or even small business organization known as stakeholders. Stakeholders may be shareholders, managers or employees, customers, suppliers, lenders, and government. They have some objectives also. Organizations are responsible for their objectives. Organizations are also responsible to the society, and their customers. Every organization should concern about the business and cultural environment. Understanding the business and cultural environment organization can find out its strength, weakness, opportunity, and threats. Knowing these organization can overcome the threats and weakness and can go global. Through international trade organization can easily import or export goods and services which help to increase their economic conditions. Objective of British Airways is to provide smarter, smooth, and more comfortable journey to their passengers or customers. They do variety of jobs to fulfill their stakeholders’ objectives. Almost every organization produces goods and services for domestic demand. But if they produce more products, they can export their surplus to other country by...
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...Table of Contents ANWER 1 a) What type of market structure does exist in the airline industry? What are the main assumptions and characteristics of this market structure? b) Evaluate the evidence uncovered by the European Commission? c) Which form of collusion have the airlines engaged in? What are the outcomes for market prices and quantities? ANWER 2 a) What are the factors that were mainly responsible for the recovery of the UK economy? b) Examine the prospects for a stable recovery? ANWER 3 a) The benefits of trade and demonstrate the principle of comparative advantage?5 b) Whether countries are justified in protecting their domestic industries by referring to the above examples and/or providing other real-life examples. References ------------------------------------------------- Answer 1 PART 1 To give a definite answer to this question it is important to define all the characteristics of different market structures, however the very first thing to do is to define how the market of the airline sector is shared, by conducting a very small research it is easy to understand that fewer company control 50% or more of the market share, this is particularly the case when looking at isolated domestic markets, however these are not generally enough large to be consider a monopoly. On the other hand, some characteristic of the market structure of this industry falls within the...
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...responsibilities that the Sainsbury organization has and the strategies they employ to meet these responsibilities. 6 Task 2 8 2.1 Different economic systems and resource allocation 8 2.2 Impact of fiscal and monetary policies in Business Organization 11 2.3 Impact of Competition policy and other regulatory mechanisms on the business 12 Task 3 14 Behaviour of Organisation in the Market Place 14 3.1 Market structure to determine the pricing and output decisions of businesses 14 3.2 Market forces shape organizational responses 15 3.3 The business and cultural environments shape the behaviour of an organization 16 Task 4 19 4.1 The significance of international trade to UK business organizations 19 4.2 The impact of global factors on UK business organizations 21 4.3 The impact of policies of the European Union on UK business organizations 25 Conclusion 28 References 29 Task 1 Different types of organizations and the purpose 1.1 Purpose of organization Before we learn about the types of organizations, we need to learn the basic purpose of setting organizations. The main purpose of organization is to provide a pathway to their business setup and to set the main objective for their business. Organizations help in making profit in a standard way. The different purpose of organizations helps in building the structure of company. Different types of organizations There are three types of organizations in business field. We will discuss each one by one. ...
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...Economic Growth and Public Policy of the UK: Does the protectionism help? Introduction The effects of globalization have touched all the aspects of life and business today. One aspect is the trading policies between countries. Since the late nineteenth century, the collision started between domestic and foreign industries, which ask governments for measures that could protect local industries, without discouraging the country’s trade relations. The term ‘Protectionism’ was thus introduced in the language of global trade and economy (Rowley, 2002). Protectionism is an economic policy applied in the trading system, to restrict the quantity of imported items, and to flourish country’s exports. The objective of this is policy is to maintain the competition between foreign and the domestic industries. In most of the countries, free trade is not followed and various tariffs and duty charges are applied on the import goods. These taxes allow the government to generate a fair bit of revenue, without utilizing their resources. Moreover, it also helps in the sustainability of the domestic industries. The prices of the imported goods are kept higher by adding these taxes so that the local customers, looking for cheaper options, have to buy the domestic items. In parallel to this, the protectionism policy allows domestic industries to raise the prices of their products, without raising the quality of their products (Ethier & Fischer, 1987, pp.1-2). Another aspect of protectionism...
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