Analyse the impact of global factors on UK business organisations

| February 25, 2014

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Task 3 – Individual report
According to the article written by Gavin Thomson and published by the Commons library Standard on 18 September 2013, EU membership influences the UK economy in a number of ways. The most important effects arise through the Single Market, the programme of economic integration through which the EU’s ‘four freedoms’ are guaranteed.
But the economic impact of the EU is felt in other areas of its policy, too. The EU has exclusive competence to negotiate trade and investment agreements with countries outside the Union; and it is a customs union with a common external tariff on imported goods. Membership thus profoundly affects the UK’s trade relations with non-EU members.
There are also fiscal consequences to membership as a result of the UK’s contributions to the EU budget. Consumer prices are affected through the Common Agricultural Policy and common external tariffs levied on imports. And the fact of EU membership may also influence decisions made by foreigners about whether to invest in the UK.
Prepare a report addressing the following:
(a) Discuss the significance of international trade to UK business organisations
(b) Analyse the impact of global factors on UK business organisations
(c) Evaluate the impact of policies of the European Union on UK business organisations
This provides evidence for:
– AC 4.1, 4.2, 4.3
Market types: perfect competition, monopoly, monopolistic competition, oligopoly, duopoly; competitive advantage, strategies adopted by firms; regulation of competition
Market forces and organisational responses: supply and demand, elasticity of demand; elasticity of supply; customer perceptions and actions, pricing decisions; cost and output decisions; economies of scale, the short run; the long run, multi-national and transnational corporations; joint ventures, outsourcing; core markets; labour market trends; employee skills, technology; innovation; research and development; core competencies; business environment (political, economic, social, technical, legal, environmental); cultural environment
Global factors: international trade and the UK economy; market opportunities; global growth; protectionism; World Trade Organisation (WTO); emerging markets (BRIC economies – Brazil, Russia, India, China); EU membership; EU business regulations and their incorporation in to UK law; EU policies e.g. agriculture (CAP), business, competition, growth, employment, education, economics and finance, employment, environment, science and technology, regional); labour movement; workforce skills; exchange rates; trading blocs (e.g. monetary unions, common markets; customs unions, free trade areas); labour costs; trade duties; levies; tariffs; customs dues; taxation regimes; international competitiveness; international business environment (political, economic, social, technical, legal, environmental); investment incentives; cost of capital; commodity prices; intellectual property; climate change e.g. Kyoto Protocol, Rio Earth Summit; third world poverty; the group of 20 (G-20); global financial stability
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