- Evaluate and analyse the information which is relevant to an analysis of firms business environment.
- Discuss the impact of government on the structure and operation of a business organisation.
- Develop an understanding of the impact of changes in the business environment on business organisation and activity.
The economic policy of Donald Trump contains different kinds of aspects such as employment isolationism, invalid migration, individual corporate taxation reformation and many more. Basically, this policy was developed for those people whose income level is low and pays taxation to the country. The fundamental economic strategy has been improving growth momentarily by rising the shortfall tax through tax cuts and extra spending. The trump agenda has a bearing on GDP and jobs in the United Kingdom and China. The economist evaluated this, according to which the policy made by the Trump administration are growing nicely and enhancing the firm's working order.
Describe and explain how President Trump’s approach to economic policy impacts foreign economies such as the UK or EU or China.
As the Donald Trump came to control he rendered the UK's hostile trade practices as they affect the UK's industry and private sector. The United Nation is America's main trading partner, selling about $96 billion in products and services (About Trump’s policies’ effect on trade and economy, 2019). The tariff will be 20 per cent, that is considered average and contributes to a downturn in every aspect of the project. The trump administration had started the war with Great Britain by enforcing trade policy. UK's steel industry will lose the most as a result of the new proposals the trump government is making. Britain makes export of 7% of steel manufacture around 330 million pounds for each year to the United State of America.
Other country in the world that has been greatly affected is China as they are America's second-largest trading partner. There will be different policies that have affected the Chinese government as the strong currency and have influenced the ease of doing trade in China. As well as price of products were increased that also became cause of fell down of economics of the nations. In addition, the stock exchange market of China was declining to lower from last two decades and importing tariff of goods of China was 45% that came under the trade act 1947. It also failed to enable the safety of employee’s standard of legislation of environment for cutting of cost.
In the end of report, it can be articulated that government of Trump levied higher tariffs on the United Kingdom and China that become cause of different crises of finance in both countries. In addition, it affected to purchasing power of public due to higher rate of taxation. In accordance of data of per capital income, it can be find out that rate of tariffs is high that affected export & import transaction between these countries.
Books and journal:
About Trump’s policies’ effect on trade and economy, 2019. [online] available through:< fxcm.com/uk/insights/how-will-president-trumps-policies-affect-trade-and-economics/ >
Global Business Environment Portfolio Paper
The emerging economies are regarded as the developed country that is more involved with the international market, and as needed it is growing steadily (Nahata, Hazarika and Tandon, 2014). Usually, the emerging economy becomes more aligned with the world economy, including FDI and GDP. The international trade is helping to sell the products and services worldwide. This helps to gain useful currency exchange which enhances business competitiveness and global influence. It also allows the optimal use of resources that help to increase people's living standards. Along with this, it helps to improve the utilization of organizations.
Emerging economics as a successful opportunity for global investment.
The FDI plays a significant role in the nations ' growth and development as this provides the country with tremendous opportunities for growth and improve the people's living standards. The FDI is helping Asian countries and the United Kingdom grow the sector and provide people with employment opportunities (Sen and Ganguly, 2017). Besides this, the international trade helps in all the activities to grow and expand. This also helps to give the monetary benefits to company and different sectors. In addition, it contributes in enhancing the competition that permits nations to provide higher quality of products.
Foreign direct investment helps to raise people's per income per capital and as more and more companies invest in the country, it will enhance people's living standards. More FDI helps to increase the Gross domestic product that in turn helps to create a powerful developing country. Not only does this allow emerging economies to boost per income per capita, but it also helps them become productive enough yet to play the crucial role in the international external FDI market.
The biggest countries with the higher FDI are China, UK, as they provide the huge prospects for the foreign businesses to move and spend in the nation's business growth (Cavusgil and Knight, 2015). They have clear laws and regulations that help the company invest in a specific country. Besides that, the tax and tariff are low, making it easier for the FDI to spend and make profit. Foreign investment offers and avenue for expansion by working for the people, as well as helping to raise people's rates and also increasing people's per income per capita.
The report shows that FDI contributes an important role in developing economies as it helps to change programs that will result in a higher and much more accountable levels of economic output. In addition, it helps improve the financial market's liquidity and performance. This also helps to create stable country's currency, however, which strengthens the nation's economic situation in a well-defined way.
Books and journal:
Nahata, R., Hazarika, S. and Tandon, K., 2014. Success in global venture capital investing: do institutional and cultural differences matter?. Journal of Financial and Quantitative Analysis 49(4). pp.1039-1070.
Sen, S. and Ganguly, S., 2017. Opportunities, barriers and issues with renewable energy development–A discussion. Renewable and Sustainable Energy Reviews. 69. pp.1170-1181.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies. 46(1). pp.3-16.
Global Business Environment Portfolio Paper
The term fiscal policy can be defined as a type of policy by that government manages its expenses and rate of taxations in order to enhance economy of a country. Fiscal policies are house prices which control the money supply (Jawadi, Mallick and Sousa, 2016). This policy is much more similar as monetary policy. The body of law makes all types of policies and has a clear element of the democratic tax rates. Herein, this is important to know that these financial policies are created by central banks and their main focus is on the rate of inflation. This policy mainly affects to the housing market of countries.
How Governments use both fiscal and monetary policies to stimulate economic activity and growth using trickle-down economics.
Monetary and fiscal policies aid in growth of economy as the policy or ruling party minimises the tax and increases the investment. It also helps consumers to benefit as it cuts rate of taxation and allows individuals to invest more. In addition, it also contributes in cutting the rate of inflation that raise the requirement and enhance the economy of products and services. For short time frame, house holders need stability in economy that helps in offering higher job opportunities. Also, an extremely volatile economy could have a negative effect on the person and thus lead to growth and wellbeing.
Role of fiscal and monetary policy-
British government has taken vitally important measures in fiscal and monetary policy and reforming the tax system that helps to make a solid economy (Matolcsy and Palotai, 2016). This leads global effort to ensure mutual efforts to lower taxes, and to build a productive global economy. In addition to this UK Government, steps have been taken to growing this public finances danger from the increasing cost of transportation. The UK has the good track record of managing and monitoring the expenditure which is handled by the world's largest spending control system. It is higher than the nations of the European Union achieving its medium-term budget expenditure forecast. The nation is also looking for a deep and substantive relationship with the EU as this helps to strengthen the trade policy that benefits both the countries (Pyun and Rhee, 2015). Due to budgetary change in policy and the technological developments occurring in the organization, different types of microeconomic revenue emerge.
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As per the discussion above, this is important for the country like the United Kingdom to handle tax policies there by decreasing tax rates. Corporate taxes must also be reduced which enhances people's GDP and net income. This is therefore important for the nation to fulfil the need to enhance children's working conditions and living standards.
Books and journal:
Jawadi, F., Mallick, S.K. and Sousa, R.M., 2016. Fiscal and monetary policies in the BRICS: A panel VAR approach. Economic Modelling. 58. pp.535-542.
Matolcsy, G. and Palotai, D., 2016. The interaction between fiscal and monetary policy in Hungary over the past decade and a half. Financial and Economic Review. 15(2). pp.5-32.