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Want to know about Corporate Strategy? Read here
Answer: International trade is the exchange of goods and services across nations without any hindrance. International trade increases the competitiveness of the firms and due to which consumers enjoy the competitive price which is cheaper and they are not exploited by the domestic firms. Also, it gives the consumers a greater variety of goods available for consumption.
Answer: A progressive tax is a tax which takes a larger percentage from high-income earners than it does from low-income individuals; this means a person who is earning more will have a higher average tax rate. In UK, the basic rate of income tax is 20% which is paid on income over the income tax threshold of £10,400. When income increases people pay a higher % of their income in tax i.e. top rate of income tax is 40% and this is paid on earnings over £40,000 a year. Also, some people pay an additional rate of 45% for income over £150,000.
Thus, it can be seen that UK income tax system is progressive.
Answer:
Objective 1: Positive and sustainable economic growth: Sustainable in keeping inflation low and reducing the environmental impact of growth.
Objective 2: Low unemployment rate: UK government tries to keep the unemployment rate around 3% and the government wants to achieve higher employment and ultimately a state where all those able and available can find meaningful work.
Answer: Online retailing is nothing but the sale and purchase of goods & services through the internet. It follows the business to customers’ trade model wherein the firms interact directly with the customers without the involvement of any mediators.
Thus, online retailing is market because it captures all the features of a market. The customers have full information about the product; the sellers sell & deliver the product to you. Also, communication between supply and demand sides happens through internet. The wide range of products available online helps in comparison, so that the decision of purchase can be easy. There competition here also among the online retailers.
Answer: Price elasticity of demand shows the relationship between price and quantity i.e. how the quantity of the good changes when there is a price change of the good. Price elasticity of demand is calculated as the percentage change in quantity by the percentage change in price.
Food is considered to be relatively price inelastic i.e. unresponsive to the change in price. It happens because, even after the piece increase, the consumption of food cannot be lowered drastically as it is a necessity good. People will continue to consume food even after price changes because it is for the living. However, some luxury food items like chocolates, ice-creams etc. gets affected after price changes.
Answer
Economic groups look for some sort of economic gain for their members and these are the most common type of interest group. These groups are well funded and they willingly contribute money so that they would benefit in future through more political influence and higher profit. They work to win private goods, which are payback that only the members of the group will enjoy. Two main economic groups are:
BUSINESS GROUP: It works to encourage the welfare of private companies and corporations by seeking tax cuts, regulatory changes, and other pro-business benefits. Firms also form associations with companies from the same industry to promote all of their interests.
LABOR GROUPS: Labor groups represent unions, which work to increase wages and improve working conditions for both skilled and unskilled workers. These unions influence the organizations and get their interests fulfilled.
