An Analysis of Uk’s Business Environment

1018 Words Dec 27th, 2011 5 Pages
An Analysis of UK’s Business Environment

1. Introduction
United Kingdom (UK) stands at No. 12 in ranking out of 134 countries from 2008 to 2011, and has a very good ranking on Infrastructure, Labor market efficiency, Technological readiness and Market size according to GCR (2011). The purpose of this report is to conduct an analysis of general business environment in UK and offer a guide for making investment decision.

The structure of this report is blow:
Section A: The GDP performance of UK in the last 20 years is analyzed by growth accounting framework, and the investment opportunities is based on the business environment of UK according to the analysis. Section B: some risks in UK will be analysis, when people invest in
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The average annual growth rate of ICT area is 2.2%, while the RGDPCH growth rate is only 2.16%. It indicates that the GDP growth main relay on the new and more efficiency technology input.

3.2.3 Summary
UK experienced a long term economic growth, and the main driving force of economic is capital input, and ICT capital input rather than real economic efficiency; however, the capital input and investment into ICT cannot increasing for a long term.

3.2 Investment Opportunity in United Kingdom

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[ 2 ]. Those factors of UK ranked in 2011 are 8th, 8th, 8th, and 6th separately.
[ 3 ]. GCR, Global Competitiveness Report, is a yearly report and published by World Economic Forum. This report ranked the countries by Global Competitiveness index. The index include: institution, infrastructure, macroeconomic environment, innovation, market size, labor efficiency etc.
[ 4 ]. Growth Accounting Framework also is called as Slow mode 1957, and briefly speaking it put forward a theory that the main economic driving force comes from the investment.
[ 5 ]. This period was chose from 1988 to 2008, because a lot of data cannot be found to 2010 and 2011.
[ 6 ]. The data is calculated by the Author from the data of PWT.
[ 7 ]. PWT, Penn world Table is a set of national-accounts data, which is maintained by University of
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