Business Economics Essay Example | Topics and Well Written Essays - 1750 words - 1

Business Economics - Essay Example This essay stresses that government policy influences the main circulation of money in the economy. The annual budget shows opportunities and threats for our manufacturing industry. This is because it enables us to know the sectors of the economy that is being encouraged and those areas that are being discouraged. Through this, we can make decisions about how to distribute our scarce resources and also pay our obligations to the state in a way and manner that suits our best interest. Microeconomics is about the elements of demand and supply and it studies trends and patterns in consumer decision-making in a given industry. This paper makes a conclusion that the presence of state-owned firms that have the objective of improving the lives of people implies that our manufacturing company will do quite well in China because we will be up in competition against entities that are not positioned to compete as aggressively as other UK entities around the world. Hence, we have an advantage in China and the propensity to attain better results and achieve better successes than our competitors, the SOEs of China. locating our business in China gives us the chance to get lower operation costs. This is because the costs of doing business in China are low due to the current economic policy which encourages businesses from overseas to set up their operations in China. Hence the knowledge of the Chinese macro-economy and the current economic policy will be a plus for us in dealing with our expansion policy.