BUSINESS ASSIGNMENT

Business Assignment

Business Assignment

Introduction

I am a local MP advisor; my task is to reflect my findings of government policies, rules and regulations' for my local community. In this assignment, I will develop an informative leaflet for the citizens to help them understand the policies of government.

Task 1

Allocation of resources

The government of every state tries its level best to allocate resources for the paramount benefit of their citizens and country. UK government has allocated its resources for infrastructure, defense, hospitals, agriculture and export. In UK, the hospital sector has been provided the optimal level of resources for healthy safety of their citizens. The government of UK has evenly distributed its resources to all the major departments.

Economic system in UK

UK has one of the leading economies in this contemporary world (Hoban, 2011, pp 2-20). It is considered as the sixth largest economy of the world. The powerful economy of the country helps in creating partnerships business. The economy of UK is not steady due to fluctuations in International market. The gross domestic product of UK has contracted in 2012, which is not considered as a good sign. Government has made intensive development policies, which will facilitate the investors to develop new plans. The creation of partnership business is associated with the economy of the country.

Fiscal & Monetary Policy

The fiscal policy (government polices) of United Kingdom main purpose is to stabilize the economy and growth of the country. The efficient fiscal policy (2011, pp 89-98) of government will decline the net public borrowing from a peak of 11.1% (2010-11) to 1.5% in (2015-2016). Monetary policy is supporting the investors of State to maintain the price stability and interest rate of the country. The interest rate in banks is constant from last few years, which means central bank is providing opportunity to individuals and investors to lend loan for their prosperity.

The fiscal and monetary policy of UK is designed is highly organized manner, which is supporting the business which are operating in the country.

Task 1.1

Current UK GDP

The GDP of United Kingdom has contracted by -0.3% in the first quarter of 2012. In 2011, the GDP of UK was 0.5% in the last quarter of 2011. The contraction of GDP reflects the inefficiency of production output in UK. The GDP of United Kingdom has contracted due to five factors that are private consumption, investment, expenditures by government and difference between import and exports. In simple terms, GDP is the sum of all the services and goods that are produced in a year. The services and goods that are produced in the first quarter of 2012, is 0.3% less when compared with 2011 last quarter GDP. The contraction of GDP is not a good sign for the regular bodies of United Kingdom.

Inflation rate

The inflation rate of UK was recorded as 3% in the month of April, 2012. Inflation rate is associated with purchasing power. The concept of inflation rate reflects the change in price over the period of ...