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Business Btec Level 3 Unit 38

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Economic Environment
The economy of each country has features that could be measured in different ways to see how they are changing. The economic environment of countries has an effect on countries due to the trading between countries affecting the money coming in and out of the country which then affects the cost of goods and prices.
The economic environment would affect jaguar land rover as the goods and prices will have been affected. By this happening it would result in the prices of the cars costing more due to the resources used costing more for the manufacturer.
Business Cycle
Increases and falls in the production are shown through the business cycle as well as income and the expenditure of the country over a period of time.
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Deflation is when the prices of products and services decreases for a period of time. This could show that an economy is in a recession. As the prices are decreasing it can cause problems as a business would have to decrease their costs in order for them to survive.
Jaguar land rover may have to make redundant some of their employees when inflation is rising as people may not buy their products and this will help them save money. Jaguar land rover would have to reduce its costs when in inflation as the prices of their products start to decrease. They could also cut their costs by making people redundant which would mean they will be giving out fewer wage.
Employment rates
During boom employment levels will be high and during recession unemployment levels will also be high. When the employment levels are high employers may find it difficult to find suitable people because there may not be many people that are suitable for the job not finding work. When unemployment levels are high sales may fall because of many people not being able to afford to buy products from businesses.
In some countries with a lot of technology there may be more machines doing the same work that was previously done by people.
If jaguar land rover expand their business in different countries it will mean they will need more people to do the work which will mean unemployment levels will stay low. But if jaguar land rover gets robots (as they have in their Liverpool company) to do the same
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