• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Effect of National Policy on Business

Extracts from this document...

Introduction

The Effect of National Policy on Business INTRODUCTION In this report I am going to research into how businesses are affected by policies towards- * Taxation * Benefits, subsidies and grants * Exchange Rates * Public Sector services * Changes in Interest Rates Using different sources I will find the pros and cons of each and also actual examples of where this has affected businesses in action. TAXATION There are lots of taxes that a business has to pay, including ones that you may not be aware you are paying. Some of the more obvious and major taxes that we are paying are - * Capital Gains Tax * VAT * Corporation Tax VAT is an indirect tax for most business actions taking place in the UK. ...read more.

Middle

For example the government are likely to subsidies book companies, as it will make the books cheaper for the buyers and then encouraging people to read. The government will subsidies newly formed businesses who will face intense foreign competition. EXCHANGE RATES When changing money from one currency to another, to find out how much money you should get for your previous currency, you must refer to the exchange rates. When your currency rises in value against other currencies it makes your goods more expensive to export. Government plays a role in deciding the exchange rates. The demand and supply of the pound sterling determine the rate. The fiscal and Monetary Policies may affect this. ...read more.

Conclusion

The government has then been able to keep an eye on the wage levels in the public sector as they pay the wages, although they can't keep such a good eye of the private sector as they have no say in the running. CHANGES IN INTEREST RATES The Borrowing of money is what interest rates represent. The Bank of England decides the interest rates; they can change the way in which the economy works in accordance to where about we are in the economy life cycle. They can influence the economy by putting borrowing prices up to make the population save and also they can put the price of borrowing down so that more people will borrow money and so therefore will spend more. This can effect the economy because it affects how much money is going in and out of the economy. ?? ?? ?? ?? Andrew White 12c ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The National Debt

    Although that is only 3 percent of our $1.57 trillion budget, it's a reversal of runaway spending increases that has not occurred since 1969. We also voted to give the President line item veto authority, giving the Executive Branch unprecedented ability to ferret out wasteful programs. Does the deficit matter?

  2. Monetary policy of a globalised economy

    goals of internal and external balance.10 To put these in plain terms internal balance requires full employment of a country's resources and domestic price level stability. External balance on the other hand is attained when a country's current account is neither so deeply in deficit that it may be unable

  1. Global Business Plan.

    We intend on targeting three special status municipalities. They are Beijing, Shanghai, and Tianjin. The air conditioners will be transported by truck between two of the cities. This would be Beijing and Tianjin because they are relatively close to each other. Our production facility will be in Shanghai of Tianjin.

  2. REGULATION OF BUSINESS

    The twelve Regional Electricity Boards were transformed into twelve independent Regional Electricity Companies -RECs- which had the control upon the reorganized transmission area called the National Grid company (Howe, 2001). Offer was the regulator of the industry and its purpose was to protect the customers' interest.

  1. Retailing In India - A Government Policy Perspective

    We then drive towards developing a comprehensive prescription for strengthening the Indian FDI policy framework. The second section of the report begins with a summary of the findings of our study on the impact that FDI has had globally. Then we proceed ahead and critically analyze the issue of whether or not FDI should be permitted in retailing.

  2. Exchange Rates and their Effect on Morocco Report.

    1821 whereby any one holding a British banknote or coin could convert it in to gold. In the 1870s Germany, USA and France also adopted a gold standard. This meant that exchange rates were fixed to each other. If £20 pounds could be converted into two ounces and $40 could be converted into 2 ounces.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work