Business Economics Assignment Sample
Unit 55 Business Economics
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Table of Content
1.1 Purposes of different types of organizations. 3
1.2 Extent of organizations meeting stakeholder’s objectives. 5
1.3 Responsibilities of the organizations and strategies. 7
2.1 Allocation of resources by the economic system.. 8
2.2 Impact of the fiscal and monetary business policies. 9
2.3 Competition policies and regulatory mechanisms. 10
3.1 Determination of pricing and output decisions on the basis of market structure. 11
3.2 Organizational response influenced by market forces. 12
3.3 Business and cultural environments shaping the behavior of the selected organization. 13
4.1 Significance of international trade to the UK business organizations. 13
4.2 Global Factors impacting the UK business organizations. 14
4.3 Policies of the European Union impacting the UK business organization. 15
The current environment prevailing in the market is highly competitive in nature requiring initiatives from business entities to retain their market position through strategic decisions and innovative business strategies. The organizations are making extreme efforts to maintain the correlation between the changing business environment and their strategic decisions in order to sustain in this cut-throat competitive environment. There are various internal micro and external macro environmental factors influencing the functional and operational activities of the organization thereby impacting their sales revenue and profitability to great extent. The organizations need to abide with the changing policies, rules, and regulations defined by various regulatory authorities and government in relation to the execution of the business activities in the market. This report would highlight different forms of organizations currently active in the market working hard to achieve their goals and objectives by abiding by the rules and regulations of the economy. We would also learn different business initiatives and activities executed by the organizations in order to meet the objectives of different stakeholders. The report would also include strategic decision taken by the organization in order to allocate their resources and make optimum utilization of those resources to meet their targets. The behavior of the organizations is dynamic and changing based on the market environment due to the influence of the market forces impacting the functioning of the organizations. The concept of globalization provides an opportunity for organizations to explore new market and penetrate them in order to improve their customer base and modify their business and functional activities on the basis of the current market conditions and external environmental factors prevailing in those respective markets. We would perform the analysis from the perspective of the UK market which is volatile in nature and contain highly competitive environment for many domestic and international organization currently operating in the market (Edward, 1971).
1.1 Purposes of different types of organizations
The different types of organization operating in the UK market are sole proprietorship, partnership, private organizations, private limited organizations, charitable trusts, public limited companies, non-government organizations, and limited liabilities companies. The purpose of all the types of organizations is similar to some extent but varies from each other also. We would explain the purpose of all the types of organization in detail individually.
The main agenda of the sole proprietorship is to maximize the returns or profits from the investments done in the business activities with the minimum amount of risks. They would focus on making the product available to the customers on time in order to retain them for the longest time and improve their customer base with minimum investment in advertisements. The organizations could be small retailers, wholesalers, small industries operating on the small scale and business entities. They would require maintaining proper relationships with the customers and the suppliers in order to maintain proper profitability in the business activities.
Partnership type of organizations
The establishment of the business unit or organization in the partnership with more than 2 people is known as partnership type of organizations. Their purpose would be similar to sole proprietorship to maximize their sales revenue and profit margins. The investments and profit sharing would be in ratios based on their efforts and investments made in the form of capital to execute the business activities. They would share the risks in the same proportion or based on the agreement between the partners and try to minimize the risk as much as possible.
Private Limited organizations
Their type of organizations maintains limited risks since the organization is considered to be a separate entity than the owner or the managing director of the organizations. Although the type of organization is different from other types the primary intention of this type of organizations would be same to maximize their profits and achieve highest possible growth in the financial year till the time the organization is active in the market. They would focus on improving their market share and improve their sales revenue and profitability in comparison to their competitors and maintain the competitive advantage.
Public limited organizations
This type of organizations would focus on the benefits and interest of the public rather than profit maximization or sales maximization. The public limited organizations would be operating in those business sectors wherein the interest of the public has to be taken into consideration in order to achieve substantial growth without hampering the public. They would motivate the general people to participate in the growth and development of the organization by issuing shares through IPOs and focus on substantial growth and survival at the end.
The types of organizations would be working for the poor people of the society and providing them with the basic amenities and work for survival in the market. The charitable organizations would make their products and services affordable primarily for the economically backward people in the society in order to improve their standard of living and provide them a better life. Their primary purpose would be to focus on the growth and development of the economically backward people suffering from poverty and different problems in the society (Robert, 2003).
They would work in the similar pattern of the charitable trusts or charitable organizations but focus on helping the people by providing them the basic amenities at free of costs. They would focus on collecting donations in order to meet the needs and requirements of the disabled people, age-old people and orphan kids in order to provide them the facilities for survival in the locality.
These are some of the mentioned types of organizations which are currently operating in the market with their primary purpose which is the prime objective and goal of their existence in the competitive market.
1.2 Extent of organizations meeting stakeholder’s objectives
There are different types of stakeholders who would be watching the performance and productivity of the organization in order to evaluate the influence and impact of it on their own investment decisions. There are two types of stakeholders primarily which are known as direct stakeholders and indirect stakeholders based on the influence and impact due to the performance of the organization. As the name suggests of the stakeholders the direct stakeholders would be the managers, employees, top management executives, and shareholders who would be directly related to the performance and functional activities of the organization. They can have the direct impact on the functions of the organizations with the decision-making power associated and given to them. The indirect stakeholders would be those who have the least influence on the decision-making process of the organization and the performance would have the least impact on them. These indirect stakeholders could be the competitors prevailing in the market, the government making the decision relating to the functional activities of the organizations in form of rules and regulations, and the external environmental factors influencing the performance to great extent. We would describe some of the stakeholders in detail in order to understand the extent of the organization to ensure that they meet the stakeholders’ objectives in an efficient manner.
The employees are one of the essential resources required for proper execution of all the functional activities in the organization. the organization needs to ensure that they provide essential facilities like proper working environment, good salary packages, proper IT support and performance appraisals and promotions in order to keep them motivated to achieve their set goals and objectives in an efficient manner. The organization can announce additional bonuses and monetary incentives to the employees in order to keep them motivated to enhance their performance and productivity in order to achieve the organizational goals and objectives in the desired time frame.
Shareholders and owners of the organization
The shareholders are one of the essential stakeholders who are directly related to the organization and expect highest returns in forms of dividends and equity from the organization against their investments in the organization. The organization needs to ensure that the shareholders and owners are given rightful information in a periodic manner about the financial health of the organization. They need to handle all the communications between the media and other stakeholders in an efficient manner so that they don’t leak valuable information about the organization which shouldn’t be shared with them (Morrison, 2006).
The government is an indirect form of the stakeholder but still can influence the productivity and performance of the organization with the rules and regulations established related to systematic methods of performing the function and department activities and disclosure of the financial performance of the organization to the regulatory authorities and other stakeholders. They establish different rules and regulations related to the tax rate and publication of the financial performance of the organization in the local and national newspaper so that the customers and other stakeholders are aware of the financial health of the organization.
1.3 Responsibilities of the organizations and strategies
There are different responsibilities on the organization to execute and they would prepare different strategies to achieve them successfully. The organization is inclined towards successfully executing the strategies to fulfill the responsibilities towards the society, their respective customers, employees, and the shareholders. All the stakeholders would require the organization to execute and handle the responsibility of providing quality products that would be safe for consumption considering the health effects and side-effects thereby eliminating them to avoid any controversies or ill-effects on the consumers. They also have different responsibilities towards the nations and the locality in which they are operating and executing their functional and operational activities thereby improving the standard of living of the people by providing employment opportunities, handling the environment, corporate social responsibilities and catering to the needs and requirements of the economically backward people in the society through charitable activities and funding the NGOs and charitable organizations (Mullins, 2010).
They need to disclose and define the organizational structure implemented in the organization to identify the roles and responsibilities of all the functional departments and respective employees thereby improving accountability. They need to hire the best-talented employees and assign the best possible role based on the expertise and experience so that they could deliver their best possible performance and contribute in the growth and development of the organization in the competitive market. They need to improve the working culture and environment through motivating employees to improve their coordination through sharing their knowledge and expertise across their individual teams and department to other functional departments and employees.
The strategies of the organization would be dependent on the responsibilities to be successfully executed in order to achieve the desired goals and objectives in an effective manner. They could meet the environmental responsibilities through following all the rules and regulations established by the regulatory authorities and signing the environmental regulations. They need to abide by the rules and regulations of all the governmental regulatory authorities which can impact the functioning of the organization. They could fulfill the responsibilities towards the employees through using various marketing and sales techniques in order to induce the customers in making the purchase of the products or services of high quality and durability. They need to install all the health and safety measure to protect the employees from any natural or unforeseen disaster at the workplace and conduct drill in a periodic manner to keep a check of the activities in case of occurrence of such disasters. They need to sign the compliance legislation in order to win the trust and confidence of the stakeholders related to the ethical functioning of the business and operational activities executed by the organization (Christina, 2002).
2.1 Allocation of resources by the economic system
The economic system consists of different phases and events to be followed including the allocation of right kind of labor for right kind of job roles, executing the production activities, supply chain management and distribution process of the inputs and outputs, movement of all forms of resources like capital, human resource and technology in order to improve the functional activities in an efficient manner. There are primarily there different types of economic systems which would define the movement of the resources and accordingly allocate them in the economic activities. The three types of the economic systems would be mixed economic systems, free-market economic system and centrally managed and planned economic system.
The free-market economic system is majorly controlled by the private sector wherein majority of the resources would be utilized by them in order to execute their operational and functional activities for completion of their production activities and maximization of the profits. They would primarily focus on the supply of the raw material and competitor’s products in the market, their proportional demands and the final capability of the resources for influencing the production and supply of products in the market. The centrally planned and managed economic system would be centrally controlled and managed by the government who is the major player in the market. The private sector would be under the control of the government and operate as per the instruction of the government and use only those resources allocated by the government in specific quantity as approved by the government. The mixed economic system is popular in the current conditions wherein the majority of the developing and developed economies would implement the mixed economic system wherein there is the balance between the private and public sector in order to execute the business activities in an efficient manner. The distribution of the resources would be made on the basis of the demand and supply of the resources in the market irrespective of the private or public sector player in the market as per their needs and requirements. The economic conditions would be influential in making the decision for allocation of the resources since the resources would be in control of the economic system and the major players would be controlling their demand and supply in the market.
2.2 Impact of the fiscal and monetary business policies
The development of the monetary policies would be dependent on the supply of the money and their corresponding usage along with the consideration of the total expenditure incurred during the financial period in the economy. The decisions related to the monetary policies established and announced by the respective government of the economies would be related to the current demand of the money required in the economy, the corresponding supply of the money, the decisions related to the issuance of the bonds in the market and other financial equipments that can be used for transactions and exchange. The fiscal policies would be related to the calculation of the total expenditure incurred by the government and controlling of all the forms of taxations in the economy which would further support in identification and determination of the economic activities in the economy. It is clearly evident that the fiscal and monetary policies can create a direct impact on the economic and business activities in the economy thereby hampering their functioning in the economy. Some of the major impacts can be explained as follows:
If the total government expenditure is higher than the returns expected in the forms of the taxations than there are high chances that the output derived at the end of the financial year would be greatly influenced and reduced thereby impacting the gross domestic product of the economy. The output of the economy would again be hampered if the total expenditure of the organization in the capital is increased and the returns are extremely low. The total tax earned during the financial year and the money supply prevailing during the same period would also influence the economic activities in the economy and hamper the total outputs derived from those respective economic activities. there are various techniques which would support in development of effective fiscal policies which would support in the development of the economy like improvement in the taxation policies, increase or decrease in the total borrowing which would lead to increase in interest payments, increase in the total consumption of the outputs of the economy, and increasing the sales through effective marketing and sales techniques. The monetary and fiscal policies would influence the demand and supply of the essential resources in the economy which would be required by different organizations in order to execute their economic activities and derive the outputs for consumption in the market to the consumers (Blanchard, 2001).
2.3 Competition policies and regulatory mechanisms
It is much obvious that the competition policies and regulatory mechanisms have an impact on the organization in such highly competitive environment wherein there are many suppliers providing similar quality products and services at cheaper prices in order to maximize their product sales and customer base. The companies encounter tough competition from the new entrants entering the market, the currently available substitute products and the competitive products of same quality and cheaper costs. The organization needs to evaluate the market conditions and formulate competition strategies in forms of reducing their total costs in order to reduce their current prices and the combination of the marketing strategies in order to attract more and more customers thereby inducing them to make the purchase of their respective products and services. The organization needs to focus on reducing the inventory costs, material handling costs, production costs, supply chain management or logistics costs which adds to the total cost of the products and other overhead costs which are variable in nature still influence the total costs of the products and services in the highly competitive market. They could conduct expert market research organizations in order to understand their current market position and perform analytical analysis of the data collected through different market research techniques in order to improve their market position and tackle the competition in an effective manner. For instance, the Tesco is one of the leading supermarket chains currently operating in the UK market and facing stiff competition from Sainsbury’s, Asda and Morissons for catering to customers with the maximum range of products and exclusive services in order to retain them as loyal customers with the retail brand. The competition strategy of Tesco would involve handling customer complaints, improving customer services, providing additional discount offers, discount cards, and cash back offers so that customers are induced in making more purchases from the retail outlets. The company needs to execute ethical approach and follow all the regulatory guidelines published by the regulatory authorities in order to successfully manage the regulatory mechanisms (Pagano, 1990).
3.1 Determination of pricing and output decisions on the basis of market structure
There are different types of market structures which could have an influence on the pricing an output decision of the organization since the demand and supply balance in those types of market structures would be different. This clearly indicates that the organization would set very high prices when they enjoy monopoly or duopoly in the market since there is almost no competition present in the market. The pricing strategy would change when there is relatively less competition and organizations would tend to set relatively high prices with the help of their brand image in the market and looking at less competition in the market. The quality of the product would also influence the pricing strategy since the customer’s willingness to spend on purchasing the product would influence the sales of the product. When the customer is willing to spend high price to make the purchase of the products due to its high quality then the organization can enjoy the liberty to set high prices in the competitive market irrespective of high competition and intense competitive environment prevailing in the market.
The markets wherein there is very less competition, the organizations can influence the purchasing behavior of the customer by making alterations to the pricing strategies like they could implement market penetrations strategy or market skimming pricing strategy with the alterations to their products or introduction of the new products in the market. The organization needs to focus on the output based on the market structure since the total demand in the market would be reliable on the market structure. For instance, the demand in the market wherein the demand for the products is higher than the output needs to be produced in equivalent to the demand and reduce when the demand is reduced. It is evident that the demand and supply of the product in the market would be influenced from the market structure in such manner that the monopoly market wherein the demand is higher would require higher supply of the products and stiff markets with high competition would be dependent on the pricing strategy that would influence the demand in the market and require adequate supply in order to meet the demand in the market (Capon, 2009).
3.2 Organizational response influenced by market forces
The concept of market forces refers to the total amount of demand and supply required in the market to maintain the balance and support the needs and requirements of the customers in an adequate manner. The concept of organizational response refers to the reaction of the organization towards the market forces in the economy in forms of different conditions in certain economic conditions prevailing in the economy. The organizational response towards the market forces and the economic conditions plays an important role in execution of business and functional activities in successful manner. The response of the organization would influence the decision-making process of the organization and require proper analysis before responding to the economic conditions. The market strategy of the organization would make the final decision about the response of the organization towards the economic conditions. The market forces would support in making decisions related to the total production of the output during the financial period and the investments to be made by the organization in marketing strategies and promoting the products in the market. For instance, Tesco is encountering stiff competition in the UK market to maintain their highest market share due to innovative marketing strategies and increasing demand for the products from their closest competitor like Sainsbury’s and Asda which operates in the same market and market conditions. The demand for the products from Tesco is rising and it is important for the organization to respond positively towards the demand through adequate supply so that the customer is not going back due to unavailability of the product in their retail supermarket chain. This would make the customer shift towards their closest competitor Sainsbury’s to make the purchase and if the customer is influenced from the marketing strategies then there are high chances that the customer would be lost forever by the organization. This indicates that the market forces could influence the organization’s response to the economic condition and require adequate actions from the organization to maintain proper balance in the market (Barro, 1974).
3.3 Business and cultural environments shaping the behavior of the selected organization
The culture prevailing in the organization plays an important role in making adequate changes internally in order to meet the changing external environments in an effective manner without much effort and in an efficient manner. The external environment is volatile in nature and keeps changing which require proper response from the organization by making adequate changes internally and adopting the current market conditions in order to sustain the competition in the market and retain their market position. The concept of the business environment refers to the permutation of all the distinctiveness visible in the business activities executed by the organization in the market. It is essential for the organizations to analyze the external factors like business and cultural environment in order to execute their business activities because the organization need to adapt to the change in the culture of performing the business activities in their home country and foreign country. There would be differences which they would require to overcome and make alterations based on the requirements to execute their business activities in the foreign country without any issues. For instance, the introduction of the Electric car model in the UK market influenced the customer demand thereby requiring traditional car manufacturers like Toyota and Honda to make changes in their current car models in order to retain their current customer base from shifting to their new competitor in the market. This indicates that the business environment can influence the behavior of the organizations and require changes in their current methods of performing the business activities in order to sustain the competition and retain their market position. The culture would definitely influence the car manufacturers like Toyota and Honda after the entry of the Electric car model developing company Tesla since they would require making changes to their current technology and adapting the changing technology in order to provide similar benefits to the customers those provided by Tesla in order to retain them for longer time (Rzonca, 2005).
4.1 Significance of international trade to the UK business organizations
The concept of international business refers to selling of the products and services to the customers located in different country beyond the domestic or national borders of the home country. The concept of globalization provided the freedom for organizations to expand their horizon from catering to the domestic customers to international level wherein they could execute their business and operational activities beyond the domestic or national boundaries and cater to the needs and requirements of the customers located in different countries. The increase in the import and export of goods and services beyond the domestic boundaries is increased across the globe including countries like the US and the UK due to rising demand of quality and branded products and services in those markets and ability of the organizations to cater to those demands in an effective manner through franchisee model or establishment of their independent unit in those locations. The organizations need to have proper analysis of international rules and regulations before they make decisions about executing their activities in those respective locations along with proper analysis of the external environment factors and the demand and supply of the competitive products currently prevailing in the market. The BREXIT decision of the UK to get away from the European Union is going to create an adverse on the international business of the UK organization since they won’t be able to enjoy the additional benefits in forms of discounts and subsidies they received in the past when they were part of the European Union. This would hamper the international activities of all the organizations in Great Britain and other associated countries in the UK. Thus it is evident that the market potential of the UK market has lot of potential for organizations to execute their business activities on international level (Breen, 2013).
4.2 Global Factors impacting the UK business organizations
The globalization has made the world a global market for the organizations wherein they can operate in any part of the world and cater to the needs and requirements of the customers on proper analysis of the demand for their products and services along with the market potential for those organizations for growth and development. There are various global factors impacting the UK business organization like the external environment factors in particular markets or countries like political, social, cultural, technological, economic conditions, environmental and legal conditions, increasing terrorist activities, unrest in the market opportunities, increasing international organizations, declining oil prices, and global growth of the world economy. It clearly indicates that the organizations need to perform proper analysis of the global factors before they make decision to start their operational activities in new markets and accordingly make decisions if they are feasible and provide market opportunities for the organization to execute their activities with minimum amount of risks. It is possible for the UK business organizations until the conditions are in their favor and provide the support in form of stable political and economic conditions, favorable cultural and social conditions, and minimum environmental norms and legal conditions for exploring the new market opportunities. In today’s global market, the influence of the political and similar external conditions in any part of the world can influence the business activities of an organization operating in different part of the globe which would require proper analysis and corrective action measures ready in such critical situation with the organization (Macfarlane, 2011).
4.3 Policies of the European Union impacting the UK business organization
The Exit of Great Britain from the European Union has greatly influenced the trade relations between the Great Britain and other countries currently part of the European Union. The other countries of the UK are still part of the European Union and would influence the trade relations among the countries in the UK. The subsidiaries and benefits which were provided to the UK would be reduced and the amount of business activities in the form of international trade would be reduced. The organizations currently operating in the countries in the European Union and the UK would be greatly impacted from the policies and regulations of the European Union thereby impacting the amount of business activities and the total availability of the products and services at affordable prices to the customers which was taken care from the subsidies and discounts provided for enhancing the trade activities within the European Union. The decision and policies defined by the European Union in relation to the trade activities within the European Union and outside countries would be based on proper analysis of the external environmental factors and internal market conditions in order to favor the rising demand of the customers and fulfill the supply of the products from the organizations currently operating in the UK (Worthington, 2003).
The increasing use of the technology and rising demand of the customers for specific products and services are making organizations improve their customer reach by catering to those markets which were closed for a long time and now opted for globalization in order to improve the economic conditions and welcome foreign direct investments. This report focused on improving the business activities from the perspective of the UK market and UK business organizations along with the handling of rules and regulations established by the regulatory authorities to define the execution of the business activities in a specific manner. The analysis of different market conditions and market structure would provide sufficient information about the business and operational activities of the UK business organization and the UK market conditions in order to sustain competition and explore new markets for improving the sales revenue and profitability of the organization (Parham, 2002).
Worthington, Ian and Britton, Chris. (2003) The Business Environment 4 th Edition, Prentice Hall)
Capon, C.,(2009) Understanding the Business Environment 3 rd Edition, Prentice Hall
Morrison J., (2006) International Business Environment: Global and Local Marketplaces in a Changing World, Palgrave Macmillan
Mullins, J.,(2010) Management and Organisational Behaviour Plus MyLab Access Code 9 th , Prentice Hall
Journal and other references
Edward M., (1971) ‘The Usefulness of Monetary and Fiscal Policy as Discretionary Stabilization Tools’, Journal of Money Credit and Banking, Vol. 3(2), 506-532 for a review of this literature.
Robert, E., (2003), ’Macroeconomic Priorities’, American Economic Review Vol. 93(1), 1-14.
Christina, R., (2002), ‘The Evolution of Economic Understanding and Postwar Stabilization Policy’, in Rethinking Stabilization Policy, Federal Reserve Bank of Kansas City, 11-87
Blanchard, O., (2001), ‘The Long and Large Decline in US Output Volatility’, Brookings Papers on Economic Activity 1, 135–174.
Pagano, F., (1990), ‘Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries’, NBER Macroeconomics Annual, Cambridge, Mass. and London: MIT Press, 75-111
Barro, R., (1974) ‘Are governments bonds net wealth?’, Journal of Political Economy vol. 82(6), pp. 1095-1117.
Rzonca, P., (2005) ‘Non-Keynesian effects of fiscal contraction in new Member States’, ECB Working Paper no. 519
Giavazzi, F., (2005) ‘Searching for non-monotonic effects of fiscal policy: new evidence’, NBER Working Paper 11593.
Breen, M., (2013). The Politics of IMF Lending. International Political Economy Series. Basingstoke and New York, NY: Palgrave Macmillan. ISBN 978-1-137-26380-3.
Macfarlane, I., (2011). “Australian Monetary Policy in the Last Quarter of the Twentieth Century”. Reserve Bank of Australia Bulletin, October 1998
Parham, D. (2002). “Microeconomic reforms and the revival in Australia’s growth in productivity and living standards”. Assistant Commissioner – Productivity Commission, Canberra Conference of Economists Adelaide.
Worthington, Ian and Britton, Chris. (2003) The Business Environment 4 th Edition, Prentice Hall)
Capon, Claire.,(2009) Understanding the Business Environment 3 rd Edition, Prentice Hall
Morrison J., (2006) International Business Environment: Global and Local Marketplaces in a Changing World, Palgrave Macmillan
Mullins, Laurie J.,(2010) Management and Organisational Behaviour Plus MyLab Access Code 9 th , Prentice Hall
LO1 Understand microeconomic theory relating to markets
1.1 explain the economic problem of scarcity and resource allocation
1.2 explain how equilibrium in a market is achieved
1.3 evaluate the importance of differing market systems
1.4 evaluate the role of opportunity costs in determining how economies make decisions
1.5 assess the importance of elasticity in market interactions
LO2 Understand the impact of market power on an economy
2.1 explain the implications of pricing and objectives on a business firm’s operations
2.2 compare how prices are set in different market structures
2.3 analyse how a firm’s behaviour is affected by: ● their market structure ● operations
2.4 evaluate the impact of regulation on market power in given situations
LO3 Understand the role of government in the macroeconomic environment
3.1 analyse how the structure of an economy has changed in the 21st Century giving the arguments for this change
3.2 evaluate the tools available to meet macroeconomic policy challenges
3.3 evaluate the success of a government’s policies in achieving macroeconomic
3.4 evaluate the economic performance of an economy in the global market
LO4 Be able to apply economic theories to the globalisation of trade
4.1 demonstrate the theory of comparative advantage using relevant illustrations from emerging economies
4.2 justify the advantages and disadvantages of free trade for development using appropriate case studies
4.3 analyse the impact of emerging economies on the developed economies
4.4 evaluate the impact of recent domestic and global economic shocks to the economy