Tesco in China

Topics: Inflation, Monetary policy, Economic growth Pages: 4 (1492 words) Published: December 14, 2012
Title: Economic situations for Tesco in the UK and China
From: Date: 08/11/12

Procedure: to describe the influence of two economic environments on business activities within a selected organisation. Also to compare the challenges to selected business activities within a selected organisation in different economic sectors. This report will consist of information about the economy in the countries. China and UK. Also there will be information about Tesco in both of these countries and why is there a major difference in the markets. There are 4 fundamental things which are part of economics. They are the inflation rate, unemployment rate, economic growth and interest rate. UK: The government recently announced that UK is coming out of recession, which is a positive factor for the UK, which means this has had an impact on the inflation rate which has increased , the unemployment rate which will also decrease, the interest rates have changed, and there is growth in the economy. Inflation is the general rise in price of the products for the economy. The inflation rate in the UK is 2.7%, thinking about the economic climate the UK was in. if you look at the bigger picture the inflation rate has decreased in numbers compared to when it went up to 8%. It is measured by the consumer price index. A rise in inflation rate means consumers will think carefully before spending. As it is a setback for both consumer and business, as businesses will have to pay out more money due to employees, suppliers etc. demanding more money to keep going and pay for essential daily needs. There are certain things which will be problems, for example the price of materials will be expensive also fuel will be a major factor as fuel prices are consistently rising and it is also non-renewable, which means there is only a certain period of time left before it runs out. This is why the prices are rising. It is a problem for both consumers and business. The unemployment rate in the United...
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