Business Action
P5- Describe the influence of 2 contrasting economic environments in
business activities within a selected organisation. (1 organisation)
M2- Explain the similarities and differences between Tesco in the UK and
China.
Introduction
This news bulletin deals with how economic environment have an impact on businesses. I
will be using Tesco to contrast 2 economic environments. The economical
environments I will be discussing are: UK and the America.
Importance of stability -A term used to describe the financial system of a nation that displays
only minor fluctuations in output growth and exhibits a consistently low inflation rate.
Economic stability is usually seen as a desirable state for a developed country that is often
encouraged by the policies and actions of its central bank.
http://www.businessdictionary.com/definition/economic-stability.html
Impact in the growing economy (Tesco in the UK and China)
Inflation- I Inflation is the rate at which the general level of prices for goods and services is
rising and, consequently, the purchasing power of currency is falling. Central banks attempt
to limit inflation, and avoid deflation, in order to keep the economy running smoothly. In the
UK the inflation rose to 1.2% as of November 2016. One of the reasons for inflation is
because of the UK leaving the EU, therefore the levels of inflation grew. When prices rise for
energy, food, commodities, and other goods and services, the entire economy is affected.
Rising prices, known as inflation, impact the cost of living, the cost of doing business,
borrowing money, mortgages, corporate and government bond yields, and every other facet
of the economy. Consumer prices in China increased 2.3 percent year-on-year in November
of 2016. The higher the levels of inflation, the costlier good are. So as China have a higher
level of inflation, some Tesco products such as Fruit and Veg, clothing, house hold
equipment will be much more expensive than in the UK. This could lead to consumers
shopping at a different store, where they can find a cheaper and an alternative then
shopping at Tesco. The more increase of inflation can result in rise of labour cost (for Tesco’s
in the UK and China) which will cost the businesses more money.
http://monster.salary.com/docs/jobassessor/joedesc.html
http://www.investopedia.com/financial-edge/0212/inflation-and-economic-recovery.aspx
http://www.tradingeconomics.com/china/inflation-cpi
P5- Describe the influence of 2 contrasting economic environments in
business activities within a selected organisation. (1 organisation)
M2- Explain the similarities and differences between Tesco in the UK and
China.
Introduction
This news bulletin deals with how economic environment have an impact on businesses. I
will be using Tesco to contrast 2 economic environments. The economical
environments I will be discussing are: UK and the America.
Importance of stability -A term used to describe the financial system of a nation that displays
only minor fluctuations in output growth and exhibits a consistently low inflation rate.
Economic stability is usually seen as a desirable state for a developed country that is often
encouraged by the policies and actions of its central bank.
http://www.businessdictionary.com/definition/economic-stability.html
Impact in the growing economy (Tesco in the UK and China)
Inflation- I Inflation is the rate at which the general level of prices for goods and services is
rising and, consequently, the purchasing power of currency is falling. Central banks attempt
to limit inflation, and avoid deflation, in order to keep the economy running smoothly. In the
UK the inflation rose to 1.2% as of November 2016. One of the reasons for inflation is
because of the UK leaving the EU, therefore the levels of inflation grew. When prices rise for
energy, food, commodities, and other goods and services, the entire economy is affected.
Rising prices, known as inflation, impact the cost of living, the cost of doing business,
borrowing money, mortgages, corporate and government bond yields, and every other facet
of the economy. Consumer prices in China increased 2.3 percent year-on-year in November
of 2016. The higher the levels of inflation, the costlier good are. So as China have a higher
level of inflation, some Tesco products such as Fruit and Veg, clothing, house hold
equipment will be much more expensive than in the UK. This could lead to consumers
shopping at a different store, where they can find a cheaper and an alternative then
shopping at Tesco. The more increase of inflation can result in rise of labour cost (for Tesco’s
in the UK and China) which will cost the businesses more money.
http://monster.salary.com/docs/jobassessor/joedesc.html
http://www.investopedia.com/financial-edge/0212/inflation-and-economic-recovery.aspx
http://www.tradingeconomics.com/china/inflation-cpi
