Economic system of various countries

Unit 1 Business Environment - Primark - BTEC Higher National Diploma in Business

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Task 1

1.1 Primark

1.2 Primark's engagement with stakeholders

1.3 Responsibilities and strategies of Primark as an organisation

Task 2

2.1 Economic system of various countries

2.2 Impact of monetary and fiscal policy on various sectors of UK

2.3 Competition policies by government

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Task 3

3.1 Various market structures

3.2 Market forces

3.3 Business and cultural environment

Task 4

4.1 Significance of international trade to the organisation of UK

4.2 Impact of global factors on business organisation of UK

4.3 Effect of European Union's policy on business organisations of UK

Monetary and fiscal policies significantly influence the UK's economy, impacting various sectors in distinct ways. Monetary policy, implemented by the Bank of England, primarily affects interest rates and the money supply. Lower interest rates encourage borrowing and spending, stimulating economic growth but potentially leading to inflation. Conversely, higher interest rates can curb inflation but may slow down economic activity. Fiscal policy, managed by the government, involves adjusting spending and taxation levels. Increased government spending can boost demand and create jobs, but it may also lead to higher deficits. Tax cuts can stimulate consumer spending and business investment but may reduce government revenue. The interplay of these policies shapes the overall economic environment, affecting sectors like manufacturing, retail, construction, and services in varying degrees.

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