|Evaluation of Market Structures|
|2.1 Explain how Economic Systems Attempt to Allocate Resources Effectively:|
I will define Economic system as, A system in which a nation allocate its recourses and distribute good and services in the national community to satisfy the needs of the society. The element of economic system is people. government, different sector and different markets, this system answer the three basic economic questions.
Business now a days is virtually effected by Economic, Social, Legal, Technological, and political factors collectively form business environment.
Pakistan have extensively energy recourses including fairly, sizable natural gas recourses, coal recourses and a large hydro power potential. these all they help in electricity production which are necessary for business.
Pakistan is a world leader in the use of compressed natural gas, The recourses of gas in Pakistan is so wide. These recourses are primary need for business.
The water management system in Pakistan is well developed, Any organization needs can be satisfy in this regard.
Pakistan has huge potential for technology industry, which include software development and electronic manufacturing. For software development the government of Pakistan initialed many projects.
After the devastating 2005 earth quack Pakistan has initiated stricter builder codes. The demand of cements has increased. Business may approach for this with the help of Pakistan government to Dubai ports words etc.
The policy by means of which a government is able to identify and monitor its expenditures and rates of taxes and can have a check on its effect on the nation’s economy.
This policy means the management of supply and managing the growth of supply. These objectives are to maintain price stability. Monetary policy is away the government can impact the economy.
The fiscal and monetary policy if you used it correctly they have similar results in both simulating our economy and slowing it down when it heats up. At the point when our legislature uses its using and burdened forces to have an effect on the economy. The mix and connection of government uses and income accumulation is fragile adjust that obliges great timing and a smidgen of fortunes to take care of business.. The immediate and aberrant impacts of financial arrangement can have its impact on individual costs capital using, trade rates, deficiency levels and even investment rates, which are normally connected with fiscal strategy. The fiscal arrangement can likewise be utilized to burst into flames or ease off the economy yet it is controlled by the national bank and Federal Reserve with a definitive objective of making pain free income environment. At distinctive times in financial cycle, this could conceivably be genuine yet fiscal strategy has secured to have specific effects on the economy and value and settled salary markets. 2.3 Evaluate the Impact of Competition Policy & Other Regulatory Mechanisms on the Activities of a Selected Organization: The impact of competition policy and other regulatory mechanisms is activates for the selection of organisms. the commission of competition is establish on 2 October 2007 in Pakistan, its is establish for that reason that it provide legal framework to create a business environment where healthy competition improving economic efficiency and establish base of business which is required for Pakistan and bring up Pakistan business to the top level and the youngster have a chance to prove himself. Task 3: 3.1 Explain How Market Structures Determine the Pricing & Output Decisions of Businesses:
Imperfect competition are those competition in which one product or service is sold by a number of firms, companies or organization. In this type the every one set his own price of the product. In this type the market is dominated by a large number of firms. Monopolistic competitionis a type ofimperfect competitionsuch that many producers sell products that aredifferentiatedfrom one another as goods but not perfectsubstitutes, such as from branding, quality, or location. For Example: The restaurants is a monopolistic competition. It is because every where there is as much or many restaurants present. In which everyone want to earn profit so in that’s point of view every one fixed its own prices. And the numbers of restaurant is uncountable.
A trueduopolyis a specific type ofoligopolywhere only two producers exist in onemarket. In reality, this definition is generally used where only two firms have dominant control over amarket. In the field ofindustrial organization, it is the most commonly studied form of oligopoly due to its simplicity. Oligopoly: Anoligopolyis amarket formin which amarketorindustryis dominated by a small number of sellers. A general lack of competition can lead to higher costs for consumers.Because there are few sellers,. The decisions of one firm influence and are influenced by the decisions of other firms. For Example: The telecommunication industry is a large number of firms in the industry but the industry is dominated by a very large producers. The telecommunication industry is dominated by a few because in Pakistan this type of firms is 5 in numbers. So that’s why it is an oligopoly and the competition between them is in control.
Amonopolyexists when a specific person orenterpriseis the only supplier of a particular commodity Monopolies are thus characterize by a lack of economiccompetitionto produce thegoodorserviceand a lack of viablesubstitute goods.The verb “monopolize” refers to theprocessby which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law a monopoly is a business entity that has significant market power, that is, the power, to charge high prices.Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry or market. For Example: It is a monopoly because its exchange product are present in the country but the competitor of these industry are not present and the one firms of these organization dominate the whole market. In reality, rarely there is some forms of substitute are available in the market 3.2 Illustrate the Way in Which Market Forces Shape Organizational Responses Using a Range of Examples:
Market force is define as “The behavior of buyers and sellers affects the levels of prices and wages without any influence from the government. Ingeneralexcess demandcausespricesand quantity ofsupplyto rise andexcess supplycauses them to fall. Market force response to business: Business strengths represent the cooperation in the middle of supply and interest with in a business sector. Authoritative reaction is the response given by an organization or business to a temperate or business condition and an association reaction to market strengths is enter in any situation as it will have an immediate effect on the organization’s benefits and dishonor. As far as supply and interest the best organizations will have fitting statistical surveying and examination set up to guarantee that they find themselves able to supply an item or administration to meet the requests of its clients. In the event that an organization has judged the business sector interest for their item accurately then they will keep their clients content by guaranteeing they supply the item or administration asked for by their clients in the proper amounts. It will likewise build benefits as the organization will have judged their edges effectively to have the capacity to supply and offer however much of their item as could reasonably be expected. 3.3 Judge How the Business & Cultural Environments Shape the Behaviors of a Selected Organization:
The external and internal environment influences that operating system of a company is called business environment. This include clients, investors, suppliers, competitors, and owners. There are two types of business environment.
Internal environmental factors are events that occur within an organization. These factors are related to the specific company or firm and are included as a part of total marketing system of company.
External environmental factors are events that take place outside of the organization and are harder to predict and control.
The culture of the organization depend on a unique and very good culture, a culture of talented people guided by shared principles, who are committed to providing our people with a helpful and empower workplace. There are four type of culture which follow by the organization
A corporate culture which stresses the role of the person or persons in power.
Role culture is a style of corporate culture which assumes that all employees are rational beings and that role can be defined and discharged in a clearly defined procedure. Organizations are divided into different functions and each employee is assigned a duty to undertake. Role culture in any organization helps to stabilize its operations since employees focus on their activities hence increasing productivity.
Team culture is concerned with how the team operates including its selection procedures and power structure, how rewards are give, practice procedures, game protocols, acceptable behavior and dress code. Team culture often depends on the traditions or lack of them of a team.
Person culture is one in which activity is strongly influenced by the wishes of the individuals who are part of the organization. 4.1) Discuss the significance of international trade to UK business organizations?
International trade is the exchange of goods and services and the exchange of goods and services along international border. In most countries such trade represent significant share of gross domestic products. Impact of international trade: 1)Industrialization 2)Advance in technology transportation 3)Globalization 4)Multinational corporations 5)Out sourcing
Economic integration is the union of economic policies between different states through the unfinished or full finish of tax and non-tax limits on trade taking place among them past to their integration. The aim of economic integration is to reduce costs for both consumers and producers, and as well as to increase trade between the countries taking part in the agreement.
Global market is the activity of buying and selling of goods and services in all countries of the world, global marketing is the process of turning over a final product or service, with the hopes of success international marketing population. global marketing has the ability of a company to the next level by implementing some marketing strategies based on the region. 4.2 Analyze the Impact of Global Factors on Pakistan Business Organizations: The buying and selling of goods and services across international borders is known as international trade. The need for trade with other countries arises because no country is self sufficient. The production of different kinds of goods and services requires different kinds of resources. Resources are unevenly distributed throughout the world. If the Pakistan exports something from EU then first of all the Pakistan has to pay in euro so convert from rupee to euro. Because in Pakistan the currency use is known as rupee. Then the trade barrier is also imposed by the government. The most common type of trade barrier is tariff. Trade between two nations took place when removal of trade barriers is resulted. A shift in manufacture from higher cost of manufacture to lower cost of manufacture take place. Trade interruption result in use shifting from lower cost of production to higher cost of production. Trade formation is clearly beneficial to businesses of UK and trade change is not. 4.3 Evaluate the Impact of Policies of the European Union on UK Business Organizations:
An economic and political union established in 1993 after the approval of the Maastricht Treaty by members of the European Community and since expanded to include many Central and Eastern European nations. The establishment of the European Union expanded the political scope of the European Economic Community, especially in the area of foreign and security policy, and provided for the creation of a central European bank and the adoption of a common currency euro. There are 28 countries which are the members of the European Union. It is economic and political union. The core purpose of the European Union is to help other countries economically and religiously. They discuss other countries in their meetings for the expenditure of their businesses. They also provide aids to those countries that are facing problems. Example when flood comes in Pakistan they provide us heavy aids. (European Union, 2014)
Fighting poverty and helping the country on its path towards inclusive and sustainable growth are the overarching aims of EU support to Pakistan. These goals will only be achieved if founded on political stability, social unity, the creation of productive and decent work opportunities, human and social development, the rule of law, and diversification of economic activity. Pakistan’s 150 million population has the highest growth rate in South Asia. especially those connecting to baby people, child underfeeding and primary school enrolment. Social sectors require more resources and major environmental problems include serious water shortages caused by demographic pressure, deforestation and poverty, Social unfairness and power are further issues to be addressed. The economic growth of recent years appears to have had little impact on poverty, which affects over a third of the population. A country level to natural disasters, the 2005 earthquake followed by floods in 2010 and 2011caused well-known damage.
There are many hurdle for Pakistan to enter in EU. but the major hurdle from my point of view the currency. because Pakistani currency is Rupee and EU currency is Euro. Euro is stronger than rupee so for business you have to change currency first rupee into Euro, it’s a first hurdle. The second hurdle the problem of language in Pakistan the national language is Urdu but without that there is 36 other language speak in Pakistan so people who are well qualified he know Urdu, and same as the case EU have English language so the who don’t speak his national language how they speak English, the third hurdle the product of EU is very expensive, so people of Pakistan can’t buy it , In Pakistan 10 to 12% of people who affords these product, there are many more hurdle that Pakistan can’t enter in EU. The advantages are lower transaction costs, less exchange rate volatility, more incentives for cross-border trade and investment, and potentially lower long-term interest rates. With the Rupee, trade within the Rupee area has increased and that, inside the Pakistan, Pakistani trade with the rupee area and Pakistani national income could, over the long term, increase significantly. so money exchange is a big problem for both of country. EU trade in Euro and Pakistani change their currency to euro.
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