• 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. Retailing In India - A Government Policy Perspective

    These formats have emerged largely due to the absence of alternative employment and typically require employees with very low skills. These formats can, and do, serve to absorb agricultural1 labor. They are, however, very important as they account for two -thirds of the sector's output.

  2. Global Business Plan.

    Our air conditioners are a product that we believe will be useful as foreign direct investment in China increases. 3. SWOTT Analysis A. The strength of our organization is that we specialize in the production of floor based and wall mounted air conditioners.

  1. Supply side policy.

    economic and social returns from higher spending on education - but few deny that "investment in education" has the potential to raise the total stock of skills within the work force and improve the employment prospects of thousands of unemployed workers.

  2. REGULATION OF BUSINESS

    the owners of the RECs, then, in January 1999, they merged the Office of Electricity Regulation and the Office of Gas Regulation into only one which was called Ofgem and which became the appointed new regulator. As Parker (1999) explains, several other official recommendations were taken and put into practice

  1. The National Debt

    His cutting back on government waste also had positive effects on the national debt. Continuing to lower the deficit for the budget, Carter experienced a 12.9% and an 8% deficit in 1978 and '79 respectively in the first half of his term.

  2. Monetary policy of a globalised economy

    This is usually done in case of a business downturn.4 The exact nature of monetary policy is one of the most important areas of macroeconomics. An illustration could be the monetary policy changes in the U.S A policy of tight money in the united states raised interest rates, slowed economic growth and raised unemployment in the period of 1979-1982.

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