Topics: Economics, Policy, Government Pages: 2 (443 words) Published: May 17, 2013

Now that you have identified a range of government policies that can affect Morgan Sindall , discuss the possible reaction of Morgan Sindall to such government policies. How will all this policies impact Morgan Sindall? There are a lot of changes made in the economic environment because of the current government policies and this will impact on Morgan Sindall. For example The government has cut spending on building new schools by 13%.Morgan Sindall will have less projects , less opportunities to get more money and more profits. This will have a huge impact on their profits and their savings. The business won’t be able to invest more money on their new school projects or to save up money. Changes like this in economic environment will bring negative impact on Morgan Sindall business but it might bring positive impact on the society because the money that government saves can be spend on other things for the society, other very important buildings. Another huge government policy that will change Morgan Sindall business in a variety ways is related to the rise in interest rates .It may lead to less investment by the private sector as the cost to finance the building would go up so Morgan Sindall might have fewer projects and the income might decrease because interest rates will increase, the cost to finance the building would go up. Morgan Sindall will reduce the amount of people working and the employment rate will be decrease. It will affect them in a positive and negative way, the advantage of this government policy is that Morgan Sindall won’t have to pay that much wages because there will be less people working, but the negative outcome of this is that they will have less projects, less profits. Because of cut spending Morgan Sindall will react in different ways. They will have less projects, because there will be less opportunities to get more money and more profits maybe they won’t have that much employees working for them so they could save up...
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