Tesco in China

1479 WordsDec 1, 20126 Pages
Title: Economic situations for Tesco in the UK and China To: From: Date: 08/11/12 Procedure: to describe the influence of two economic environments on business activities within a selected organisation. Also to compare the challenges to selected business activities within a selected organisation in different economic sectors. This report will consist of information about the economy in the countries. China and UK. Also there will be information about Tesco in both of these countries and why is there a major difference in the markets. There are 4 fundamental things which are part of economics. They are the inflation rate, unemployment rate, economic growth and interest rate. UK: The government recently announced that UK is coming out of…show more content…
Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well-known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. The Gross Domestic Product (GDP) in China expanded 2.20% in the third quarter of 2012 over the previous quarter. Historically, from 2011 until 2012, China GDP Growth Rate averaged 2.07% reaching an all-time high of 2.50% in June of 2011 and a record low of 1.50%in March of 2012. The Gross Domestic Product (GDP) growth rate provides an aggregated measure of changes in value of the goods and services produced by an eco nomy. China's economy is the second largest in the world after that of the United States. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China's rapid economic growth has been exports growth The urban unemployment rate in China was last reported at 4.1%in the third quarter of 2012. Historically, from 2002 until 2012, China Unemployment Rate averaged 4.15% reaching an all-time high of 4.30% in December of 2003 and a record low of 3.9% in September of 2002. The unemployment rate can be defined as the number of people actively looking for a job as a percentage of
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