An every day understanding of a national business environment. As a national business environment we are governed by the city, there are large corporations that control the working environment. The country is a national based business environment where large and small businesses are created and grow from a consistent use of energy and money . People are employed and try and remain self employed and employ others nationally to create an environment were we can work earn and survive.
The business environment is a smaller environment to that of the environment.
Major movements are continued with their concern about the environment which effects all aspects of the environment, from development programs of the earth summit were nations are protecting their natural resources to help improve the satiability of environment.
The U.S has an environmental protection agency that helps create federal laws to preserve the quality of the environment .
Businesses are shaped by the movement, competitors, consumers, suppliers and national factors . Influences such as taxation polices and corporate activities , international influences impact the national business environment.
Organisational structures are relevant to legal and regulation framework and the business market structure is an understanding of how organisations work.
The legal structure of origination is categorize private and public companies, government, voluntary organisation, co-operative, charitable, sectors
Through structure we create a vision an aim ,goals values ,profits & shares ,growth sales ,service level, customer satisfaction, reasonability & ethical issues as well as returns on capital and being employed.
Businesses have owners, customers, suppliers, employees, debtors, creditors, and financial intuitions such as banks, mortgage lenders, credit factors, environment groups and government agency’s also trade unions.
A business operates in an economical system, which is an effective use of resources , free enterprise mixed and transitional.
There are responsibilities of the organisational structures stakeholder’s interests, conflicts of expectations ,consumer legalisation, equal opportunity’s and anti discriminatory legalisation, environmental legalisation, health and safety legislation, ethical issues ,environment fair trade ,global warming and banking codes.
The U.K. economy is based on gross intake of domestic products, gross national products, structure, population, labor force, growth, inflation, balance of payments and trade, exchange rates, trading partners, public finances, revenues & expenditures, taxation, government borrowing ,business behaviour investment, Objectives, risk awareness, cost of capital, consumer behaviour ,save spend tastes and preferences.
To understanding the nature of the National Government of Business and how its policy’s operate ,the government has economical goals ,fiscal policy’s. Central and legal government spending, public sector net cash, euro convergence, interest rates ,private finance initiative, competition commission, office of fair trading, European commission, regional and industrial policy’s enterprise strategy’s and training & skills policy’s.
How do economical systems attempt to allocate resource effectively?
International businesses comprises of many different sectors from private to government sales, investments logistics and transportation.
International political boundaries comprise of regions, countries and nations that all have private sectors were governments are a profitable and political organisation.
The company produces the goods, services, resource for other nations ,the national trader has economical recourses including capital, skills, people to produce for a larger consumer ,international production of physical goods , services and finance banking insurance construction.
A multi national enterprise is a company approach to markets and production that operate in other countries such as a lternative and complementary health care and merchandising.
This s also a large increasing industry ,public consumerism is ever increasing with merchandising product ranges and also therapy’s and alternative therapy’s increasing and becoming more and more mainstream on the high street and also availability through the NHS.
There is a lot more awareness of the importance of complementary healthcare, for those who chose to opt for an alternative therapy that is a luxury service or a necessity to that of a therapy that is for an ailment also it is renowned for helping aid relaxation and stress.
In the last twenty years the level of awareness to encourage alternative methods of complementary health have improved as well as the education system and new schools have opened were they are offering many different course to help improve the level of training for practitioners .
Yoga is also a great step into recovery and self-development to help develop self-belief in spiritualism and body movement and self-awareness in exercise & stretch to karmic yoga.
There is a journey of self-discovery through alternative health and many people believe that yoga leads the way into life of purpose and enlightenment. The Sivanada Yoga centre is worth a visit although there are many yoga schools and centres.
There are many small businesses were independent massage company’s are starting and also shops that are more accessible on the high street to that of private practitioners that work from clinics and also practitioner that work at a visiting basis in a home e nvironment.
Although the national environment are a lot more aware of the changes that are consciously making complementary healthcare is more available .
While seeking unemployment I had enrolled for a City and Guilds massage one year course at Morley Collage which consisted of also studding an Anatomy and Physiology, I had been able to join on a hardship fund and I have learnt many attributes from a good basis in Anatomy and Physiology to First aid in the work place and learning about crystal therapy and aromatherapy .
The course consists of a large written portfolio and case study’s. Also the Federation of holistic Therapists helps you gain CPD Points a combination of skills by joining workshops to gain a variation of experiences in body massage treatments.
There are alternative health schools were you are to continue training from Gateway workshops which help you develop your ability’s in alternative health also Neals Yard Remedies Courses which offers a high standard level of course structure from a great massage routine to gaining experience with case study’s
The Collage of psychic studies is also an alternative place of healing where many alternative practitioners and students go to study and lecture there are workshops and course structures that conform a national to an international basis.
Inflation
Inflation it’s meaning its effect and trends since 1989 inflation in the industry health care and therapy in economics inflation is consistently increasing general price levels of products which emphasises purchasing power .Inflation effects can be both positive and negative ,the negative aspects are that the increase in product price this discourages investments and savings . The positive aspects are that the banks can adjust to real interest rates and encourage investments ,high rates of inflation are caused by excessive growth in money supply, however growth does not necessarily cause inflation .
Hyperinflation is caused by excessive growth of money supply although it doesn’t cause inflation. Inflation reduces the risk of an economic recession by keeping inflation low and stable banks control the settings of interest rates
Inflation increases the amount of money in circulation ,the inflation rate can be calculated by the change in the price index
The effects and trends of inflation and are affected in food and energy prices from high inflation to a reduction to low inflation, which deters investors.
Gold has always been an asset that causes high inflation ,house hold inflation and also rent inflation is also ever increasing ,trend inflation a stable rate of inflation government taxes may imply positive inflation rates which effects the financial markets.
The concept of a banking independence is setting a trend of inflation rates by starting a central independent bank and improving a negative trend effect on the less unfortunate and also women .By increasing the levels of inflation an implication was to try and start a positive level rate of inflation.
Uk fiscal policy the main types of spending’s and taxation and their trends
The facial policy fine tunes the economy unemployment and inflation both and effect the policy is the fiscal policy was not effective while inflation and unemployment increased.
The introduction of the monetary policy has a few advantages as it is easier to change the interest rates than levels of tax and spending.
Fiscal policy has work incentives and impact on government borrowing. The increase was due to tax revenues from the recession.
The National fiscal stimulus is in response to a recent global recession ,most nations have used combination on government spending and tax cuts to boost the economy.
Defect spending by governments place demand during the recession and prevent the waste of economic recourses on lack of demand.
The up was one of the most major economic leading on fiscal stimulus ,a tax cut that was added to tax payers money and then added tax on sales created large investors ,investment spending ,small enterprise and loan guarantee schemes were put in place along with a budget to help with the training for the young unemployed.
The UK has the ability to take discretionary fiscal action that the bank bail out on public finances. We are at a rise in national debt , the automatic stabiles, which have Contributed to discretionary action. Inflation its meaning and its effects and trends since 1989.
Fiscal trends and effects
Unemployment increases as inequality within fiscal consolidation which has raised unemployment consolidation and its effects inequality.
Inequality is a state of being unequal, a domination that is either more or less than, it is not equal to that of another.
Consolidation integration is combining and merging a process of two actions or interests
The effects and trends of targeted social benefits such as health care, social security and unemployment that are on the rise of income tax and a decrease in social benefit and progression of income tax systems . Long term trends are influenced by the fiscal policy inequality and growth by promoting education and training in lower middle class economical systems.
Interest Rates
To define interest rates , it is the amount charged as a percentage by the lender to the borrower for the use of assets usually interest rates are done annual basis annual percentage rate APR.
The asset being cash, consumer goods, a house or car. The IR is usually a charge to the borrower for use of the asset there are low risk which are charged at a low IR and high risk rates which are high IR
Simple interest =P (principle) x I (annual interest rate) x N (years)
Borrowing £1000 at 6% annual interest rate for 8 months means that you would owe £40 in interest (1000x6%x8/12) as well as the amount borrowed
Interest rates as major instruments of government policy’s and how they influence the household, business.
Interest rates are an important part of the bank of England’s framework the government structures policies once a year.
Price stability is an objective as well as low inflation, which help sport the government’s objectives for growth and unemployment. Economic stability is trying to provide sustainable growth in employment.
Inflation is a major instrument that is used by the Chancellor of the Exchequer in the annual budget statement.
In 1998 the bank of England act made the bank independent to set interest rates. The bank is accountable to parliament and the public .The government uses interest rates as a monetary policy to the bank on interest rates for a limited period.
Targets are a major instrument of the government’s policy a monetary policy and are taken into account when dealing with investments, inflation and unemployment.
The bank reduces interest rates while increasing investments and consumption of the country's economy. Low interest can cause an economical bubble ,it can be described by rapid acceleration of asset prices; overheated economic activity and uncontrolled money supply and a credit expansion , large amounts are spent on real estate and the stock market.
While Margret Thatcher was PM the economy maintained a stable growth by not allowing the Bank of England to reduce interest rates.
The total interest on a loan or an investment ,can depend on the time scale ,the interest is calculated on interest paid may be compounded.
There are reasons for the changes in interest rates, political short-term gain ,lowering the interest rates can give the economy a short run boost. This is only a short-term gain as activity causes inflation ,which can influence an elections , independent banks have an influence on politics and interest rates.
Deferred consumption when money is loaned ,the lender delays spending on the consumption of goods as the consumer preferred now not later. .
Inflationary expectations such as inflation can mean the given amount of money buys fewer goods in the future than it will now .If in our borrowing your needs need to be compensated the lender.
Alternative investments to the lender who has a choice in investing their money into different investments. If you chose only one investment rather than the other choices that are no longer available. Different investments compete for different funds.
Risks of investments, there is a risk that the borrower will go bankrupt ,die or default the loan, this means a risk that is premium to ensure that his investments and will be compensated if the borrower fails.
Liquidity presences people prefer to have their resource available that can be immediately exchanged rather than a form that takes time to release.
Also taxes mean because some of these gains from interest may be subject to taxes the lender may insist on a higher rate to make up for this loss.
The UK economy and international trade
What is the economy?
The economy is the production, distribution or trade and consumption of limited goods and services.
The economical agent is individuals, businesses, organisations or governments. Transactions occur when two parties to value or price transacted goods or services.
Economical structure is natural resources, labor and capital. It involves culture, values, education, technological education, technological evolution, history, social organisation, political structure and legal systems; it has a natural resources endowment geographically and also ecologically.
Market based economy is goods and services are produced with out interferences an are exchanged with demand and supply with a currency of exchange of credit and debit value accepted within a network. Capital and labor can move freely to any area of shortage by rising prices, market based economy’s require information for prices to function and create a production such as effective labour.
The UK economy
The UK is the 6th largest national economy in the world the 3rd largest in Europe and the gross domestic product which is the market value of recognised goods and services produced by a country in a year is the 8th largest in the world .
I t is the 10th largest exporter and the 6th largest importer. The 3rd largest stock in inward foreign direct investments and 2nd largest stock of outward foreign direct investments. The UK has one of the world’s most globalised economies.
One sixth of tax revenue comes from Value Added Tax from the consumer market of the UK economy.
Service dominates the Uk economy 78% gross domestic product with the financial services industry which contributes 86 million to the economy and the industry then employed 1 million which is 4% of the British employment rate. London is the world’s largest financial center along side New York.
It also has one of the largest euro space industries and pharmaceutical industry's and the automobile the UK was booted by North Sea oil and gas production reserves estimated at 20 billion.
The HM treasury, the Chancellor of the Exchequer and the department of business control the government’s involvement in the British economy.
The bank of England is responsible for setting interest rates. Sterling is the worlds 3rd largest reserve currency to that off the American dollar and the Euro.
The UK is a member of the Commonwealth of Nations the European Union the International monetary fund, organization for economic co-operation and development of the World Bank, World trade origination and the United Nations.
In 1997 when Labour and Tony Blair was PM he had managed to maintain successive economic growth ,he decided to keep taxes relatively low were their was extensive annual growth . Then their was a change in parliament and in the conservative party was back in parliament and we entered a recession causing a global financial crisis, many banks had began to collapse and the state had ownership and other banks nationalized the markets capitalization of total of shares of a traded company.
The share, which is the unit of an account of, stocks an investment.
A cooperation divides its capital into shares which are sold to raise capital .It is a unit of capital between a company and the shareholder, the value of the share is face value. The capital is divided into the number of shares. The income received from the shares is known as dividend. As a shareholder who owns shares sells or purchases shares through a stockbroker.
Market Capitalization is the value of issued shares of a traded company it is equal to share prives x no. Of shares outstanding , when outstanding stock is brought and sold on the market .Capitalization is not much interest of the net worth. This is the total asset minus the liability.
This can determine stock valuation IS =SP x SO . A liability is an obligation of past transaction, it can result in a transfer or use of assets from borrowing from a person or bank that is repayable, a duty to others by future use of assets which is no economically beneficial, a duty that is to another with little discresion to avoid settlement or a transaction that has already occurred .
The treasury had 705 controls of shareholders in UK financial investments limited. The recession saw unemployment rise from 1.6 million In 08 2.5 million in 2009. The UK economy has a strong economy, inflation interest rates and unemployment ,although unemployment has risen by 2.5 million the highest since the 1990s.
Interest rates are reduced by .05 % the economic outlook has worsened with rising commodity prices, externally exported goods are rising due to manufacturing costs and by expanding the scope and an expanse in external financial balance. Labour needs to be increased to 35 hours a week were the working week is increased to help encourage productivity.
G overnment spending and economic spending
The treasury and the UK economy is managed by low taxation and market liberation that exercises the government’s invollment in the economy. By setting low interest rates to set a level to achieve overall inflation for the economy.
As a result of a financial crisis the global recession has risen and a series of bank bailouts.
Although public sector net borrowing is lower than the last changing the UK budget deflect.
Taxation is a payment to different levels of the government that are local and central to HM Revenue & Customs. The local government is financed by grants from the central government which funds business rates, council tax and fees from parking, The central government which also have a main income from tax national insurance contributions.
There are many sectors in our economical environment that need to be considered as an industrial exportation commodities from agriculture which produces 60% of its needs and has many natural resources from coal petroleum, natural gas, tin limestone. Iron ore, salt, clay.
It employs 1.65% of employment in the country, it is devoted to livestock and arable crops and is valued at 9.5 million to the UK economy.
Construction contributes 86 million to the UK economy and employs 2,2 million-.the largest construction project opens in 2018 a new rail line from east to west through London to Heathrow 26 miles estimated at £15 billion’s.
Production industries ,electricity ,gas and water supply’s 33 million pounds to the British economy ,they are building nuclear reactors to boost us energy reserves.
Manufacturing generates 140 million and employs 2,6 million people the UK . It is a major center for manufacturing engines the aerospace industrys and is one of the largest in the world and Rolls Royce and BAE systems are British based company’s and employs 13000 people.
The pharmaceutical industry employs 67000 in the UK and invested nearly 4 million in research and development and exports their products from the UK ,
14 billion the UK s largest company GlaxoSmithKline is the thirds largest in the world.
Mining and quarrying company’s added 31 million to the uk economy energy outputs of oil natural gas coal nuclear it is the largest importer in the SU members the UK is the largest producer of natural gas in the world and the largest in the EU .
Service industry’s such as transport distributions sale of goods from producer to consumer ,wholesaling, retailing ,pest control or entertainment and restaurant industry is the soft economy, it improves productivity performance potential and sustainability and creates effective labour .It contributes 77.8% GBD.
The creative industry’s such as cultural industries, advertising ,architecture, art, crafts, design ,fashion, film ,music, performing arts, publishing ,software, toys & games, TV , radio and video games create only 6% of the economy which seems very low due to that the population are much more into specialist industry’s than that are listed as major industry’s the theatre creating a larger economical boost in the economy.
The financial and business services are valued at 116 million in the UK economy, it makes a significant contribution to the economy, It is one of three global economy centers, it is a leading center for banking insurance ,Eurobonds, foreign exchange trading energy futures.
The City houses the stock exchange international financial futures ,metal exchange and the Bank of England. Also there are large law firms ,h otels and restaurants add a gross 36 million to the economy ,public administration and defence another 70 million, real estate and renting activates the property market through an increase in price low interest rates credit economic and rapid growth.
To buy and let property investments.
Tourism is important to the British economy we have 27 million people tourists every year and is one of the most visited places in the world.
Transport storage and communication creates 60 million. The UK has a network of roads and rail and many different rail company’s.
Wholesale and retail trade motor trade auto repairs personal and household goods from UK grocery markets; London is a major retail center.
Sterling is a reserves currency and is the third largest domination to that of the U.S dollar and the Euro .