Essays on Analysis of the Business Environment Assignment

Download full paperFile format: .doc, available for editing

The paper "Analysis of the Business Environment" is a perfect example of an assignment on business. Economic growth is determined by the quality of living standards of the people. The prices of goods and services affect economic growth and the quality of people’ s lives. An increase or decrease in general prices of goods and services (inflation and deflation) can stimulate or reduce economic growth (Sloman et al. , 2010). In Eurozone, the inflation rate has been decreasing since 2013, and deflation is expected in the year 2015 since some countries have already started experiencing its effects.

The anticipated Eurozone inflation rate is 2% annually (Great Britain: H.M. Treasury, 2013). However, the recent move has portrayed a declining trend in the inflation rate that has aroused the fear of the occurrence of inflation. This study evaluates the present inflation rates in the UK and the reasons why the UK may fear the occurrence of anticipated deflation. Inflation Inflation is contributed by a number of factors such as an increase in demand than supply of goods and services, decline in the supply of goods or services, increase in the supply of money in the economy, etc.

(Granville, 2013, p. 143). For example, increases in factory wages, taxes, and the cost of imports will make companies’ increase the cost of products thus leading to cost-push inflation. Inflation is a characteristic of a growing economy because increased spending stimulates economic growth (Office for National Statistics, 2014). Although inflation affects various people differently its effects on the economy depend on whether that inflation was anticipated or expected (Great Britain: H.M. Treasury, 2013). In the case of anticipated inflation whereby the inflation rate corresponds to the expectations of a majority of the people, compensatory strategies can be undertaken to minimize its costs (Office for National Statistics, 2014).

For example, banks will adjust interest rates while employers will adjust wages and salaries for their employees in order to compensate for the effects of inflation. Inflation may cause harm to the economy because investors may shun investing their resources because of uncertainty about expected income (Curwin, & Slater, 2007). It results in market inefficiencies that make it tough for the companies to budget for long-term plans.


Alkhudairy, K. S. (2008). Stock Prices and the Predictive Power of Macroeconomic Variables. ProQuest. Pp. 119-138.

AL-Riyami, M. H. (2008). Sources of Macroeconomic Fluctuations in a Small, Developing, Oil- exporting Economy: The Case of the Sultanate of Oman. ProQuest. Pp.10- 47

BBC, (2014). Economy Tracker: Unemployment. Retrieved on 31st December 2014 from

Begg, D., Fischer, S., Dornbusch, R. (2005). Economics, (8th Ed.). Mc Graw-Hill

Curwin, J. & Slater, R. (2007). Quantitative Methods for Business Decisions, (6th Ed.). Cengage Learning EMEA. Pp. 790.

Elliott, L. & Atkinson, D. (2012). Why Britain Will Have a Third World Economy by 2014. Palgrave Macmillan. Pp. 1-389

Encyclopaedia Britannica, Inc., (2014). Britannica Book of the Year 2014. Encyclopedia Britannica, Inc. Pp. 1- 882 pages

Ferrero, A. (Jan 15th, 2014). Desperate Times, Desperate Measures. University Of Oxford. Retrieved on 31st December 2014 from.

Floud, R., Humphries, J. & Johnson, P. (2014). The Cambridge Economic History of Modern Britain. UK: Cambridge University Press. Pp. 1-560.

Gay, R. D. (2008). Effect of Macroeconomic Variables on Stock Market Returns for Four Emerging Economies. ProQuest. Pp. 1-120.

Granville, B. (2013). Remembering Inflation. Princeton University Press. Pp. 1-296

Great Britain: H.M. Treasury, (2013). Review of the Monetary Policy Framework. The Stationery Office. Pp. 12-64

Holmes, D.R. (2013). Economy of Words. University of Chicago Press. Pp. 1-264.

International Monetary Fund. Research Dept., (2014). World Economic Outlook, October 2014. International Monetary Fund. Pp. 1-242

Khan, M. (04 Nov 2014). Does the UK have a £70bn deficit problem? The Telegraph. Retrieved on 31st December 2014 from

Lipsey, R. &Chrystal, A. (2011). Economics, (12th Ed.). Oxford University Press. Pp. 1-677.

NPR, (October 31, 2014). "Why Deflation Is Such A Big Worry For Europe" Retrieved on 31st December 2014 from

Office for National Statistics, (2014). United Kingdom Balance of Payments. Retrieved on 31st December 2014 from

Powell, D. J. (Aug 14, 2013). The Trader's Guide to the Euro Area. Wiley. Pp. 1-216.

Sloman, J. & Hinde, K. & Garratt, D. (2010). Economics for Business. Financial Times/Prentice Hall. Pp. 1-840

Smith, P. (2014). As Deflation Looms, It’s Europe’s Moment of Truth the Fiscal Times. Retrieved on 31st December 2014 from

Trading Economics, (2014). United Kingdom GDP Growth Rate. Retrieved on 31st December 2014 from

Download full paperFile format: .doc, available for editing
Contact Us