Q&A - Does globalisation benefit UK businesses and the UK economy?
There is an argument about whether the seemingly unstoppable process of globalisation provides an overall benefit to the UK.
read more...»Q&A - What are the main factors driving globalisation?
Whilst there are many factors that have contributed to globalisation, it is the actions of businesses that have done most to accelerate the process in recent years.
read more...»Q&A - What is globalisation?
Globalisation is a process where an increased proportion of economic, social and cultural activity is carried out across national borders. The process of globalisation has significant economic, business and social implications.
read more...»Q&A - How are businesses affected by unemployment?
Businesses are affected in a variety of ways depending on whether unemployment is high or low, and rising or falling.
read more...»Q&A - What are the main causes of unemployment?
The causes of unemployment can be described under four main categories:
- Seasonal unemployment
- Frictional unemployment
- Structural unemployment
- Cyclical unemployment
Q&A - What has happened to unemployment in the UK?
After a sustained period of falling unemployment and increasing employment, the recession in the UK has prompted a substantial increase in unemployment recently.
read more...»Q&A - Explain what unemployment is and how it is measured
Unemployment arises when the supply of those making themselves available for work is greater than the demand for workers. Unemployment is, therefore, the excess supply of labour in the labour market.
read more...»Q&A - Outline the main costs and benefits of inflation
Inflation has many important costs and consequences for both society and business. However a stable and low level of inflation also provides some upsides for business.
read more...»Q&A - Explain the causes of inflation
There are two main causes of inflation:
• Demand-pull (when there is excess demand), and
• Cost-push (when costs rise)
Q&A - What is inflation and how is it measured?
Inflation is a sustained increase in the average price level of a country. The rate of inflation is measured by the annual percentage change in the level of prices.
read more...»Q&A - How do changes in commodity prices affect businesses?
A change in commodity prices has too main possible effects on a business:
(1) An effect on sales revenue
(2) A change in raw material and other operating costs
Q&A - What is the business cycle?
Looking at the chart of economic activity in the UK, you may be able to spot that there is a regular pattern in the rate of economic growth. This is known as the business cycle.
read more...»Q&A - What is economic growth?
Economic growth measures the percentage change in the value of economic activity in a year.
read more...»Q&A - What is the economy?
The economy describes the total of economic activity taking place each day
read more...»Q&A - What are commodities and how are their prices determined?
A commodity is a product for which there is demand and which is supplied without any clear difference in product quality or standard.
An important feature of a commodity is that its price is determined as a function of its market as a whole – by the interaction of market demand and market supply.
read more...»Q&A - What is market supply
Supply is defined as the quantity of a product that a producer is willing and able to supply onto the market at a given price in a given time period.
Market supply is the total quantity that all producers in a market are prepared to supply at each price level.
read more...»Q&A - What is market demand?
Demand is the quantity of a good or service that consumers and businesses are willing and able to buy at a given price in a given time period.
Market demand is the sum of the individual demand for a product from buyers in the market. If more buyers enter the market and they have the ability to pay for items on sale, then market demand at each price level will rise.
read more...»Q&A - What are the implications for UK businesses if the pound strengthens?
A good way to look at what happens if a currency strengthens (an increase in the exchange rate) is to work through an example.
read more...»Q&A - What causes an exchange rate to change?
An exchange rate is a price of a currency. The price is determined by the forces of demand and supply in the currency markets. Just like the commodity markets for wheat, oil and coffee, the price of a currency will reflect the amount of the currency that consumers and businesses want to buy (demand) and sell (supply).
read more...»Q&A - What is an exchange rate?
An exchange rate is the price of one currency expressed in terms of another currency.
read more...»Q&A - How are businesses affected by changes in interest rates?
The effect of a change in interest rates will depend on several factors, such as:
• The amount that a business has borrowed and on what terms
• The cash balances that a business holds
• Whether the business operates in markets where demand is sensitive to changes in interest rates
Q&A - What is an interest rate?
An interest rate is the cost of borrowing money or the return for investing money.
read more...»
