Unit 37 P1

Topics: Unemployment, Money, United Kingdom Pages: 3 (743 words) Published: March 27, 2013
P1 Sam rostam
Explain the effect of changes in the economic environment on a selected business Gross domestic product is one of the main gauges used to indicate the health of a republic's economy. It signifies the entire pound cost of all properties and facilities created over a precise time period. Regularly, GDP is stated as a judgment to the last year. For instance, if the year-to-year Gross domestic product is increased by 3%, this is believed to mean that the economy has developed by 3% throughout the last year.

Measuring Gross domestic product is complex, this is why this subject of the matter is dealt with by the economists, but at its most basic, the situation can be calculated and done in one of two ways: either by adding up how much income was made in a year, or by adding up what everyone spent.

The revenue method, which is occasionally referred to as Gross domestic product is calculated by adding up total payment to employees, gross profits for combined and non-combined companies. Combined companies are businesses that are linked together; on the other hand non combined companies are businesses that do not mix with other companies to make revenue. The expenditure method is the more common approach and is calculated by adding total consumption, investment and government spending. Interest Rates?

Interest rate is when a business borrows or lends money from a building society or a bank ends up paying an interest on the loan they received. The interest rate is the annual amount charged by a bank to a borrower, for example the borrower to get a mortgage. This is usually stated as a percentage of the whole quantity lent. Each bank can regulate its personal interest rate on loans. In general, interest rates increase in times of inflation. Imports & Exports?

Imports are when the United Kingdom ship in products and facilities from countries all over the world. UK imports tend to bring over machinery,...
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