Executive Summery

The purpose of this assignment is to identify different economic and business environment concepts such as different types of organization, different market structures, different economic systems, and so on. From that concepts the owners, investors and others will able to making their investment and day to day decisions.

For this report as a telecommunication company in the UK we selected BT organization. BT is one of the world’s leading communications services companies, serving the needs of customers in the UK and across 180 countries worldwide. Their main activities are the provision of fixed-line services, broadband, mobile and TV products and services as well as networked IT services.

Here there will a section, it will get discuss about different policies like fiscal and monetary policy. Andwhat is the impact of these policies for our selected organization.

Also another important economic concept is international trade business and their significance and impact to the UK economy. As we are future managers we would have to carry that opportunities for the future and we have to identify pros and cons of that businesses.

And we explain about our selected company and what their purposes such as thing are and how impact theoretical concepts for that organization such as stakeholders with their purposes, suitable market structure, impact of policies like vise. From that report we can able to get theoretical knowledge as well as how that theory impact for the practically.

Table of contact

ACKNOWLEDGEMENT …………………..………………………………………… I

EXECUTIVE SUMMARY ……………………………………………………………. II

TABLE OF CONTENT ………………………………………………………………. III

Task 01………………………………………………………………………….…….01

1.1. Types of organization………………………………………………………………….01

1.2 Stakeholders of the BY company………………………………………………….04

1.3 Purpose of the BT Company…………………………………………………………………..06

Task 02………………………………………………………………….……………..08

2.1 Types of economic systems…….. …………………………..…………………08

2.2 Fiscal and Monetary policy……………………….………………………………….10

2.3 Impact of the policies to the BT……………………………………………………………….12

Task 03……………………………………………………………………………….13

3.1 Types of market …………………………………………………………………13

3.2 Market condition of BT…………………………………………………………………..……15

3.3 Market demand and supply of BT……………………………………………………………15

Task 04………………………………………………………………………………………………………….17

4.1 International trade pros and cons……………………………………………………………..17

4.2 Emerging Market…………………………………………………………………………………..18

4.3 EMU…………………………………………………………………………………………………….19

Conclusion and references ………………………………………………………………………..……20

Task 01

1.1 Different types if organization

Private organizations

The main types of business organization in the private sector in the UK

  1. Sole traders
  2. Partnerships
  3. Companies
  4. Franchises.

The sole trader

The sole trader is the most common form of business ownership In the UK about 20 percent of sole traders operate in the construction industry, a further 20 percent in retailing, and about 10 percent in finance, and 10 percent in catering.

In this organization, decisions can be made quickly and close contact can be kept with customers and employees. All profits go to the sole trader, who also has the satisfaction of building up his or her own business.

However, there are disadvantages. As a sole trader, you have to make all the decisions yourself, and you may have to work long hours. You do not have limited liability, and they have to provide all the finance there self.

The partnership

An ordinary partnership can have between two and twenty partners. The Partnership Act of 2002 has made it legal for some forms of partnership big accountancy firms to have more partners who also enjoy limited liability. People in business partnerships can share skills and the workload, and it may be easier to raise the capital needed. As an example, a group of doctors are able to pool knowledge about different diseases, and two or three doctors working together may be able to operate a 24 hour service. When one of the doctors is ill or goes on holiday, the business can cope.

Private Companies

Shareholders who appoint Directors to give direction to the business own a company. The Chief Executive is the senior official within the company with responsibility for making major decisions. Specialist managers will be appointed to run the company on behalf of the Board. A company is a legal body in its own right with an existence that is separate in law from its owners. The company will therefore be sued and can sue in its own name.

Limited liability is a form of business protection for company. For these individuals the maximums sum they can lose from a business venture which they have contributed going bust is the sum of money that they have invested in the company – this is the limit of their liability.

Private companies have Ltd after their name. Shares in a private company can only be bought and sold with permission of the Board of Directors. Shareholders have limited liability.

Public organizations

Departmental Organization

There are main two reasons for establish a department. First, it was easy for a government to create an enterprise within the organizational framework of one of its already existing departments. Secondly, in the initial stages of developmental planning, the number of such enterprises with commercial functions was small.

There are some major characteristics of Departmental enterprises. Some of them are;

  1. The enterprise is subject to budget accounting and audit controls applicable to other government activities.
  2. The permanent staffs of the enterprise are civil servants, the method by which they are recruited and the conditions of service under which they are employed are ordinarily the same as for other civil servants.
  3. The enterprise is generally organized as a major sub-division of one of the central government departments and is subject to direct control of the need of the department.

Public Corporation

Public Corporation may be understood in general terms as an autonomous commercial organization established at government’s insistence outside the framework of government department and company legislation.

1. It is wholly owned by the State.

2 .It is generally created by a special law it is defining its powers, duties, and immunities and prescribing the form of the management its relationship to established departments and ministries.

3 As a corporate body it is a separate entity for legal purposes and can sue and be sued, enter into contract and acquire property in its own name.

Government Company

The joint stock company is another organizational form of public enterprises. The ‘company form’ which may also be called a ‘government company’ is described in many countries as an enterprise registered under the Companies Act .There are some advantages in government companies

1. A government company is far easier to constitute than a public corporation.

2. The company form enables the government to diversify its ownership in the company

3. The creation of a company form of public enterprise suggests the government’s will to allow the public enterprise to work under the same set of law as those applying to private sector enterprise.

Development Corporation

It is difficult to exactly define ‘Development Corporation’. Based on empirical evidence world over, especially in the developing countries, it may signify an autonomous agency in the public sector, primarily to promote, rather than to operate, economic activities through a system of subsidizing. The promotional activity of a Development Corporation is as follows.

1.2 Stake holders

Government and industry regulators

BT organization must comply with rules and regulations set by the governments and industry regulators in the UK in which it operates. These stakeholders directly affect BT limited in several ways. They issue BT with licenses to operate in the telecommunications sector. Without these licenses, BT would have no business.

Governments and regulators also set various technical and legal requirements. For example, BT limited must comply with the European Union’s ROHS directive, which restricts the use of certain hazardous substances in electrical and electronic equipment.

Ofcom is the regulatory body that creates standards and rules for the UK telecommunications industry. Ofcom oversees the industry to ensure that there is vigorous competition between telecoms companies. It seeks to ensure that companies like BT set fair prices for its customers.

In addition, the responsible of the government and industry regulation is the ensure that the BT is comply with rules and regulations or not, if not take some action for that and should be educated the people in the country. If the BT comply with rules and regulations set by the governments, the government will satisfy with that.

Customers
A focus on customers is at the heart of everything BT does. To attract and keep its customers, BT seeks to offer the products and services demanded by businesses and consumers. This requires continuous investment in new services. For example, BT is investing £2.5 billion on creating wider Super-Fast Broadband access across the UK. It has also introduced the BT limited Family Protection service, which enables parents to supervise their children’s access to content on the internet and BT think that customers will satisfy with that facilities and BT always try to satisfy their customers.

Through its research and development work, BT is able to offer more environmentally efficient solutions to its customers. These allow BT customers to reduce their impact on the environment.

The customer responsibility is the care about the BT limited and if there is any issue for the environment or people the customer should complain it or should attention with that matters.

The Community

All companies can have an impact on the communities in which they operate. This is why the wider community is an important stakeholder. These impacts can be positive. For example, businesses provide jobs, which have an impact on local economies.

There can also be negative impacts, such as pollution and other environmental disturbance. All businesses must be sensitive to community concerns. Negative publicity can damage a company’s reputation.

BT its social responsibility through its environmental initiatives. It is also playing a role in community building. One way it is doing this is by helping to make broadband internet access more widely available. 9.2 million Adults in the UK have never used the internet .BT hopes to address this via its ‘Get IT Together’ campaign to help people get online. By improving its networks, BT can contribute to tackling social exclusion.

In addition, the community mainly expect about social responsibility and environment friendly. In addition, if the company will do such thing community will satisfy with that. In addition, their responsibility is involve with those matters.

Suppliers
BT has a global supply chain. It requires suppliers that can deliver the materials, components, products and services that will enable BT to achieve a technical and competitive advantage. Cost and quality are important considerations. However, BT also maintains an environmental focus to its relationships with suppliers. For example, when the company purchases components and products at low cost from the Far East, managers check that the low cost is balanced against environmental and other impacts.

BT works closely with its suppliers to ensure the best use of energy and other resources across its supply chain. It recently introduced a Climate Change Standard for its suppliers. This requires suppliers to address the challenge of climate change. The suppliers expect their credit worthiness, from that they will satisfy, and therefore the BT Company should care about it. In addition, the responsibility is the suppliers is to care about what the company doing and about their sustainability.

Partners

BT is one of six official sustainability partners for the London 2012 Olympic and Paralympics Games. Sustainability involves considering the long-term impact of business and social activity.

BT’s role as a partner in the London 2012 Olympic Games is a business opportunity. However, it will also allow BT to demonstrate its commitment to sustainability. This is a key part of the way that it does business. As a business opportunity, BT’s communications networks will help to make London 2012 the most successful and visually rich games of all time. BT’s Network will transmit every image and sports report and support every visit to the London 2012 website. This will generate a huge potential customer base for BT’s services and enhance the reputation of the company.

The partners also satisfy with the company reputation and sustainability. In addition, their responsibility is the attention about company growth and the going concern of the company. If have any issue with the company they should involve with that issues.

1.3 propose of the organization

Vision

BT Telecommunication Company’s vision is to provide the best network and best services to their customers.

Mission

BT’s mission is to provide excellent telecommunications and information products and services, and to develop and exploit their networks, at home and overseas, so that they can meet the requirements of their customers, sustain growth in the earnings of the group on behalf of their shareholders, and make a fitting contribution to the community in which they conduct their business.

Aims

Aims provides scheduled IT maintenance for all IT related products. Either via remote support or on site, their skilled techs will undertake an extensive range of checks in the network. Aims provides managed service to contract to ease their operations, their team undertake the full IT responsibility of their network. The support service is provided on a pay as they go or on a monthly contract basis.

Next aim is offers integrated data and voice cabling for Local Area Networks and for Data Centers. They always maintain quality of the product and quality of our service, because they know the cabling is the backbone of their network and this is the key area of their business for over 10 years. They believe a well maintain physical architecture provides an issue less stable LAN. Aims cabling team has the certifications and experience to handle most of the communication.

Goal

Promote the adequate provision of affordable, efficient, reliable, environmentally sound, and aesthetically unobtrusive telecommunications facilities to meet the current and future needs of Dane County residents and businesses. Supporting objectives.

Growth

BT has announced its 4G customer base has reached 7.7 million, up from 5.7 million since the start of last year. The UK operator claimed this sets a new European record for 4G growth. The telco reported the large majority of the new 2 million 4G customers were added in the last two months of last year. It said it extended its 4G network to 350 cities and towns over the course of 2014, bringing the total number of urban vicinities covered to 510.

The operator said it also added over 1,000 villages and small towns in the latter part of 2014, taking the total of rural vicinities to 3,894. It said this is part of its increasing focus on more rural areas.

BT also claimed its 4G network now covers over 80% of the UK’s population, and that it is on track to achieve its target of 98% by the end of 2015.

According to further figures form the operator, 4G data uploads increased six-fold in 2014 compared to 2013, which it said is largely owing to selfie and video sharing on Twitter, Face book and Instagram, as well as video streaming from services such as BBC iPlayer, YouTube and Sky Go.

Market share

This statistic shows the market shares held by mobile operators in the United Kingdom in 2015.BT held the greatest share of the market with 32.9 percent.

The e most marked developments in the field of telecommunications and technology in the last few decades has been enabling people to get in touch with one another quickly, through numerous means, while on the go. Communications and its ever-strengthening connection to mobility has become the most significant telecommunications development of recent years; allowing people to juggle daily schedules, home life and work. Major tech companies like Apple, manufacture such devices and constantly develop them so that they continue to meet new organizational challenges presented during the course of everyday life.

Task 02 (LO2/M2)

2.1 Different types of economic systems

  1. .Traditional Economy

Traditional economies still produce products and services that are a direct result of their beliefs, customs, traditions, religions, etc. Vast portions of the world still function under a traditional economic system. However, there is an increasingly small population of nomadic peoples, and while their economies are certainly traditional, they often interact with other economies in order to sell, trade, barter

In many traditional economies, community interests take precedence over the individual. Individuals might be expect to combine their efforts and share equally in the proceeds of their labor. In other traditional economies, some sort of private property is respect, but it restrain by a strong set of obligations that individuals owe to their community. Certainly one of the most obvious advantages is that tradition and custom is preserved while it is virtually non-existent in market/mixed economies. There is also the fact that each member of a traditional economy has a more specific and pronounced role, and these societies are often very close-knit and socially satisfied. The main disadvantage is that traditional economies do not enjoy the things other economies take for granted Western medicine, centralized utilities, technology, etc.

  1. Command economic systems

Command economic system is the next step up from a traditional economy. Command economy or planned economy, the government controls the economy. The state decides to use and distribute resources. The government regulates prices and wages; it may even determine what sorts of work individuals do. Socialism is a type of command economic system. The government has assumed varying degrees of control over the economy in socialist countries. In some, only major industries have been subjected to government management, in others, the government has exercised far more extensive control over the economy.

As advantages of this economic system, Resources are quickly and effectively mobilized on a large scale, Industrial power is created and massive projects completed while attaining imperative social goals, Individual self-gain is no longer the driving force of success among businesses.

  1. Market economic system

A market economy is very similar to a free market. The government does not control vital resources, valuable goods or any other major segment of the economy. In this way, organizations run by the people determine how the economy runs, how supply generate what demands are necessary. In this economies system individuals make economic decisions.

Market economy based on supply and demand where the prices of goods and services are determined within a free price system. This system encourages economic freedom and was set up so that it would regulate itself due to money flowing where the demand is greatest and encouraging competition and initiative. There are many advantages and disadvantages of market economy. Such as, Companies become creative in finding new products to sell or manufacture and less expensive ways to accomplish their goals,

As companies grow because of the market economy, foreign investors will begin to take an interest and help expand, Private companies take over activities and venues that were in the past public sector. This reduces the size, power and cost of state bureaucracies and

Production increases for the frivolities that will cost more money but people want.

  1. Mixed economic system

A mixed economic system also known as a Dual Economy is just like it sounds (a combination of economic systems), but it primarily refers to a mixture of a market and command economy As we can imagine, many variations exist, with some mixed economies being primarily free markets and others being strongly controlled by the government.

In the most common types of mixed economies, the market is more or less free of government ownership except for a few key areas. These areas are usually not the resources that a command economy controls. Instead, as in America, they are the government programs such as education, transportation, USPS, etc. there are many advantages of this system those are, State provides the essential services, Private sector encouraged for profits, Competition keeps prices low, Consumer choice, Inefficient business behavior controlled

2.2 Monetary policy and fiscal policy

Monetary policy is the process by which the monetary authority of a country controls the supply of money often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. Monetary policy is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it.. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset value.

Fiscal policy

The use of government revenue collection and expenditure (spending) to influence the economy. According to Kenyan economic when the government changes the levels of taxation and governments spending, it influences demand and the level of economic activity. The two main instruments of fiscal policy are changes in the level, composition of taxation, and government spending in various sectors. These changes can affect the following macroeconomics variables, amongst others, in an economy:

• Aggregate demand and the level of economic activity;

• Savings and investment in the economy

• The distribution of economy

Impact of Expansionary policy

Expansionary fiscal policy involves government attempts to increase aggregate demand. It will involve higher government spending and / or lower tax. In theory, higher government spending will increase aggregate demand (AD=C+I+G+X-M) and lead to higher economic growth.

https://www.economicshelp.org/images/macro/AD-increase.jpg

Lower taxes should increase disposable income of consumers leading to higher levels of consumer spending. This should also increase aggregate demand and could lead to higher economic growth.

Expansionary Fiscal policy can also lead to inflation because of the higher demand in the economy.

Impact of Contractionary Policy

Contractionary policy simply refers to the opposite of expansionary policy. A $200 million tax cut is expansionary. A $200 million tax increase is contractionary. Under contractionary policies, deficits will shrink or surpluses will grow.

2.3 Impact of these policies to the BT

  1. Fiscal Policy involves changing government spending and taxation. It involves a shift in the government’s budget position. E.g., Expansionary fiscal policy involves tax cuts, higher government spending and a bigger budget deficit. Therefore, this policy is most impact for the BT Company. Because as a telecommunication company they had to pay so many taxes for the government and because of changing of this policy, it is most impact for the BT Company. Therefore this policy is most important to the BT.
  2. Monetary policy involves influencing the demand and supply of money, primarily using interest rates. It can also involves unorthodox policies such as open market operations and quantitative easing. Therefore, because of change a policy the stock prices will be changes. Therefore The BT Company is more care about these policies.

Task 03 (LO3/M3)

3.1 Different market types

Markets are defined as the exchange of specific goods and services between buyers and sellers for money. Markets are categorized into economic models according to the size of the businesses, the number of sellers of specific goods and services, their share of the market and the degree of competition. The four major economic market models are:

  • Perfect competition
  • Pure monopoly
  • Monopolistic competition
  • Oligopoly

Perfect Competition

Perfect competition is a theoretical model that does not exist in the real world and is instead used as a benchmark to measure other types of markets. In a perfectly competitive market, there are many small firms selling identical products or services that cannot be linked to a specific seller. The market share of each company is small enough that a single firm’s actions cannot influence pricing on products and services. Pricing is also transparent so that consumers are made aware of different costs between sellers.

As an example, close example foreign exchange. Where the product is identical, there are many sellers, and information is widely available. This market falls short of the perfect competition definition, however, as large firms or countries can sometimes influence pricing.

Pure Monopoly

A pure monopoly exists when a single company sells with no competition, and there is no similar alternative for the product or service. Formidable barriers to entry, which may include high costs, copyright protection or patents, characterize monopolies. Governmental barriers such as regulations, tariffs and the granting of exclusive contracts for nationalized industries can also build and protect monopolies.

Example for that government-protected monopoly include:

  • AT&T prior to being broken up in 1984.
  • U.S. Postal Service.

Monopolistic Competition

This market model has elements of both perfect competition and pure monopolies. Like perfect competition, monopolistic competition involves numerous businesses that are too small to have control over the market. In the monopolistic competition model, each business sells similar but not identical products. Like a pure monopoly, monopolistic competition includes the capability for businesses to change prices. Additionally, businesses within specific sectors can have a monopoly-like effect.

Examples include McDonald’s and Starbucks, both of which have significant market share in their respective industries.

Oligopoly

Oligopolies are characterized by markets that have high barriers to entry and are dominated by a limited number of businesses. Products and services are similar, meaning that a company can lose customers if it raises prices. In oligopolies, price reductions generally do not provide an advantage as competitors can reduce their prices as well. These factors tend to keep prices charged by each company in a tight range.

Examples are present-day oligopolies include:

  • Smartphones and their operating systems.
  • Airlines.
  • Computers.

3.2 Market condition for the BT Company

BT is a telecommunication company. Therefore, the BT have an Oligopoly market condition, because oligopoly mean, that have high barriers to entry and are dominated by a limited number of businesses. Products and services are similar, meaning that a company can lose customers if it raises prices. Therefore, they should reduce prices as well. In addition, they have to follow strategies to stay in the market and they should do the innovation. Especially they have to continue fair prices for their products.

3.3 Market of the BT Company

Market demand and the market supply

In generally demand curve has a negative slope and supply curve has a positive slope. However, according to this case, BT, Telecommunication Company is in an oligopoly market and therefore it has a kink demand curve. The kinked demand curve model assumes that a business might face a dual demand curve for its product based on the likely reactions of other firms to a change in its price or another. It has also a downward sloping demand curve.

A rise in demand for a telecommunication services and other telecommunication related items that tends to exert an upward pressure on price. However, if producers respond by supplying more to the market this may then go on to lead to a fall in price, because producers are able to benefit from large-scale production In the BT Company.

BT Company has normal supply curve that similar to other marker supply curves.

Innovations and advanced technology of BT

With rapidly converging fixed and mobile networks and a burgeoning range of communications services and products for consumers and businesses, telecoms is a dynamic, fast moving sector where demand and supply are framed by ongoing innovation. Virtuous circles exist whereby innovation and investment in the capabilities of communications networks creates opportunities for technical and creative innovation in hardware, software, applications and the way content is delivered and consumed which further fuels demand for higher capacity connectivity.

Incentives to innovate and invest in network connectivity can also, in BT’s opinion, be impacted by regulators imposing too broad a range of supply obligations on network providers. Such obligations to provide a range of services within multiple points of the value chain are problematic, they represent the type of policy-shift that undermines long-term commitments to support innovation simply and serve to reduce the value of the investments infrastructure players have made and undermine future investment decisions and are not justified by reference to competition concerns.

The insight and understanding the BT gain from their local relationships and their in-depth knowledge of BT’s huge resources and capabilities means BT are best able to design and promote technology-neutral programmers and partnerships across the UK to support government initiatives and help stimulate business growth. For example, their partnership approach working with local authorities, regional agencies and others, to develop next generation broadband solutions. In addition, they could bring fiber broadband in reach of more than 90% of UK premises. In addition, by deploying alternative broadband technologies, they could bring faster speeds to the final few percent.

Task 04 (LO4/M4)

4.1 pros and cons of UK businesses (From international trade)

Pros

  1. International growth
    there is a possibility exporting companies can achieve levels of growth not possible domestically in international markets. Therefore, a company’s sustained revenues from a well-diversified portfolio of overseas customers are vital for a business to benefit.
  2. ROI
    Business Case Studies asserts overseas trade works to increase financial performance and ultimately augment the returns on investment. There is then potential for businesses to amplify the commercial lifespan of existing products and services, even if they had become less popular in domestic markets.
  3. Spreading business risk
    Director of Smart Currency Exchange Director Charles Purdy says a company may protect itself from unprecedented global disasters and market upsets such as financial meltdown, earthquakes and civil unrest through overseas business.
  4. Market competition
    if a business competes in several markets then it may have the ability to thrive overseas, Business Case Studies states. Companies can improve their competitiveness through the observation of a range of trends in quality, product development, design and packaging.
  5. Exchange rates
    as a business begins to trade overseas the reliance it has on its domestic market reduces and risks can be spread, especially in relation to exchange rates according to Business Case Studies.

Cons:

  1. Exchange rate risk
    because exchange rates fluctuate there is also risk business trading in foreign currencies may not be able to forecast finances accordingly.
  2. Political risk
    investing in different countries whose political regimes can change over time also poses a few risks. Governments could discriminatorily change laws, regulations or contracts governing an investment.
  3. Cultural risk
    In addition to policy, cultural differences could create problems for businesses wanting to trade overseas. This could range from causing offence by not observing correct protocol, to inappropriate packaging and marketing. It is understood that the marketing of a certain business in one western country might differ to that of a country that is still developing and has differing cultural habits and beliefs.
  4. Credit risk

It is very easy to overlook the risk of non-payment when trading overseas too. Businesses should establish the credit rating of potential clients in many countries and guard against non-payment through, for instance, letter of credit or arrange credit insurance. The risk comes with the impact of a customer’s financial drawback of the firm and how to finance the offered credit period.

4.2 Emerging markets

An emerging market economy is a nation’s economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body. Emerging markets are not as advanced as developed countries but maintain economies and infrastructures that are more advanced than frontier market countries.

Barriers and Opportunities

The telecom companies with the most exposure to emerging markets are usually the ones that are politically favored. More so than firms in other industry sectors, telecommunication companies thrive in emerging markets on the basis of their political and regulatory clout as much as their business acumen. Telecoms are both restricted and protected by governments, which auction off regions of consumers and require licenses to operate. An illustrative example can be found in Vodafone, a U.K.-based telecommunications firm that has spent years pressing policymakers in India to allow it greater access to consumers.

For foreign investors or developed-economy businesses, an EME provides an outlet for expansion by serving, for example, as a new place for a new factory or for new sources of revenue. For the recipient country, employment levels rise, labor and managerial skills become more refined, and a sharing and transfer of technology occurs. In the end, the EME’s overall production levels should rise, increasing its gross domestic product and eventually lessening the gap between the emerged and emerging worlds.

4.3 EMU

The European Economic and Monetary Union (EMU) is the successor to the European Monetary System (EMS), the combination of European Union member states into a cohesive economic system, most notably represented with the adoption of the euro as the national currency of participating members.
The problems of the euro area stem from design faults of the Economic and Monetary Union (EMU) with current account imbalances, differential inflation, and a poor macroeconomic framework, and failures to accommodate differences in institutions between the member countries.

The Economic and Monetary Union came into being with countries experiencing different current account positions, and the differences in the current account positions have tended to increase current account deficits have, of course, to be funded by borrowing on the capital account, and in the other direction current account surpluses involve capital account outflows. It is well-known that the EMU as a whole has been close to balance with regard to the current account position, which implies that directly or indirectly the surplus countries within EMU are lending to the deficit countries within EMU. The single currency with its removal of exchange rate risk between member countries aided such flows, and many of the deficit countries were able to borrow at much lower rates of interest than they had previously experienced.

Conclusion

In the assignment we are able to learn different types of organizations we identify two main types of organization are private organizations and public organizations. In addition, we are able to identify who are the stakeholders in BT Company such as shareholders, government, and community. In addition, we get some knowledge about vision, mission, aims, goals, growth in the BT Company. Later we discussed different types of economic systems. It included traditional economy, command economic systems, market economic systems, and mixed economic system. Next, I explained monitory policy, fiscal policy and their contradictory and explanatory impacts. Later I identify what is the impact of these policies to the BT.next I identify different market types. It included perfect competition, pure monopoly, monopolistic competition and oligopoly.

In addition, a favorable and unfavorable market conditions are affect for BT Company. There is a kink demand curve and normal supply curve. There are some pros and cons when business trade internationally in UK. I was able to get knowledge about emerging market and barriers and opportunities in emerging market. Finally found there is an EMU. At the end of the report, I was able to get pure knowledge about business environmental and economic concepts and theories with practical example

References

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