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How to export powerpoint to microsoft word for task 1: presentation

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How to export powerpoint to microsoft word for task 1: presentation

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1. Open your presentation on ppt
2. Click File
3. Click Export
4. Click create handout
5. Click text to appear beneath the slide (its the third option)

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BANKING  GLOBALIZATION
Billions worldwide are adopting digital currencies and breaking down financial ,social and global transactional barriers.

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POLITICAL GLOBALISATION
An example of the benefit of POLITICAL GLOBALISATION is the Asia Pacific Economic Corporation. It includes countries such as the US, Japan and 18 other countries formed to ease trade and investment. One of its main goal in lowering trade barriers. It accounts for 48%of global consumers and 70% of global GDP.

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Social Globalization Examples
Social media platforms like Instagram, Facebook, TikTok allows people around the globe to share information, ideas and has brake the barrier of borders and connect them as communities when they share the same interests.

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Individual Task: Go to https://www.educba.com/globalization-examples/ and choose a case study example and feedback to the class via our class Padlet.

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Fiscal Policy
to reduce inflation ,government can increase taxes(such as income tax and VAT).This improves the government budget situation and helps to reduce demand in the economy.

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FISCAL POLICIES
.Increase taxes
.Cut spending

MONETARY POLICY
.Raise official interest rates
.Restricting the money supply

SUPPLY SIDE POLICIES
.Deregulation
.Reducing unemployment.
. Privatisation

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Monetary Policy

In a situation of high inflation, monetary policy can have a key role to play. The standard response of a central bank would be to raise official interest rates. This is an example of a contractionary or deflationary policy. Higher interest rates reduce aggregate demand, leading to a slower rate of economic growth and (eventually) lower demand-pull inflation. For example, higher interest rates might makes mortgages on property more expensive to service which has the effect of dampening down the rate of growth of house prices via a fall in housing demand.

A period of higher relative interest rates also causes an appreciation of the exchange rate which has the effect of reducing the price of imports and making exports more expensive.

Higher interest rates squeeze aggregate demand and can help reduce the size of a positive output gap. As part of monetary policy, the central bank might also Introduce a lower inflation target: Many countries have an inflation target (e.g. UK CPI inflation target of 2%). One argument in support of this is that if consumer and businesses believe the inflation target is credible, then it will help to lower inflation expectations. And if inflation expectations are reduced, it becomes easier to control inflation because fewer people will be asking for hefty wage increases.

Trade policies

In some countries, retail prices are kept artificially high because of the effects of import tariffs and import quotas. One policy option for a government might involve gradually lower import tariffs, perhaps as part of a wider trade agreement with other countries. A smaller tariff could have the effect of reducing import prices leading to an outward shift of short run aggregate supply. The costs of imported raw materials, component parts and finished consumer goods fall leading to a deflationary effect on the general price level. This might be shown in an analysis diagram by an outward shift of short run aggregate supply.

A potential downside of this approach is that domestic firms would then face tougher price competition from overseas suppliers and there might be a contraction in home-based production, employment and investment. The government would also be giving up some tax revenues from import tariffs which for a number of emerging/developing countries can be a significant source of tax income. Reducing trade frictions can be an effective policy to bring down the rate of inflation although domestic businesses would need to increase their efficiency to be able to compete with cheaper goods and services from overseas.

Supply-side policies

Supply-side policies are measures designed to increase the competitiveness and efficiency of the economy, putting downward pressure on long-term costs and therefore helping to control inflation. These policies might include government tax relief for business investment and also state funding to fast-forward major infrastructure projects in sectors such as transport, energy and power supply, telecoms and health care. Ultimately, if supply-side policies provide successful, then more new firms will enter markets (increasing industry supply and driving down prices) and labour productivity will increase helping to control the unit costs of businesses so that fewer of them are under pressure to raise prices. Effective supply-side policies lead to an outward shift of the long-run aggregate supply curve and help provide the conditions for a period of non-inflationary growth. However, they are unlikely to have much effect on the rate of inflation in the short term. In this sense, monetary policy has a more important role to play in controlling price increases.

Monetary policy in some countries is also accompanied by a policy of wage controls or wage freezes. Trying to control wages could, in theory, help to reduce inflationary pressures. In the UK, the UK government has in recent years operated with a public sector pay policy that has limited annual pay rises for several million workers to just 1 percent a year - this has meant that nominal wages have failed to keep pace with inflation leading to a steep fall in real wages and also relative pay compared to many private sector jobs.

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Monetary policy – Higher interest rates. This increases the cost of borrowing and discourages spending. This leads to lower economic growth and lower inflation.

Tight fiscal policy – Higher income tax and/or lower government spending, will reduce aggregate demand, leading to lower growth and less demand-pull inflation

Supply-side policies – These aim to increase long-term competitiveness, e.g. privatisation and deregulation may help reduce costs of business, leading to lower inflation.

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https://amp.theguardian.com/business/2023/jun/25/governments-advised-to-cut-public-spending-or-raise-taxes-to-curb-inflation

Governments must raise taxes or cut public spending after central banks kept interest rates too low for too long in the face of higher inflation, according to the Bank of International Settlements.

https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html

Putin’s illegal invasion of Ukraine and global supply chain pressures have pushed wholesale energy prices to record highs and saw inflation peak at 11.1% in October 2022, the highest level in 40 years. High inflation erodes the value of wages and hurts economic growth.

The Bank of England has taken steps to control inflation by raising interest rates, and the government’s Energy Price Guarantee (EPG) has reduced energy bills for millions, keeping inflation lower than it otherwise would be. The Office for Budget Responsibility (OBR) is now forecasting that Consumer Price Index (CPI) inflation will fall to 2.9% by the end of 2023.

To further support households with the cost of living, the government is maintaining the EPG at £2,500 for a further three months from April 2023. The government will also align charges for comparable direct debit and Pre-Payment Meter (PPMs) customers, ensuring that those on PPMs no longer pay a premium for their energy costs.

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Monetary policy – Higher interest rates. This increases the cost of borrowing and discourages spending. This leads to lower economic growth and lower inflation.

Tight fiscal policy – Higher income tax and/or lower government spending, will reduce aggregate demand, leading to lower growth and less demand-pull inflation

Supply-side policies – These aim to increase long-term competitiveness, e.g. privatisation and deregulation may help reduce costs of business, leading to lower inflation.

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individual task

Based on  the knowledge of macroeconomic you have learnt in this module, suggest to the UK government fiscal, monetary and/or supply side policies in order to reduce inflation and report the findings to the whole class

10 mins mind mapping

5 minutes plenary discussion

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https://journals.sagepub.com/doi/full/10.1177/09593543221135867

This article approaches the theme of the psychology of de/globalisation by taking up the example of Brexit as an historical conjuncture that hinges upon troublesome questions of sovereignty.

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Skare, M. and Soriano, D.R., 2021. How globalization is changing digital technology adoption: An international perspective. Journal of Innovation & Knowledge, 6(4), pp.222-233.

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How globalization is changing digital technology adoption: An international perspective

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This paper examines how globalization influences the adoption of digital technologies. The purpose of the paper is to explain how globalization affect...

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Apple

Apple along with other manufacturing companies has taken manufacturing overseas to reduce costs and improve efficiencies. Many of the upstream components and subassemblies are also manufactured in China and Southeast Asia, so to do final assembly in the United States.

Due to the development of globalization, Apple increased its profits. In America’s earlier years, the car was a key to the U.S. economy. Today,a new economy structure has emerged in part due to Stew Jobs (former CEO of Apple) who helped lead the U.S. technology market to the top.

As of July 2013, Apple has developed 417 retail stores in 13 countries and an online store available in 38 countries with global sales of $16billion dollars in merchandise in 2011. As a multi-national corporation, Apple Inc has realized the significance of globalization by spreading all over the world.

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CAR MANUFACTURING BY FORD, GM AND CHRYSLER
The 3 big car manufacturers in the USA are heavily dependent on globalization. The above three for example have invested heavily in manufacturing in mexico because of the low cost of manufacting in the country. They ship the cars back to the US after manufacturing in Mexico. These same companies use a lot of car parts made in japan, Korea or Germany before selling in showrooms worldwide.

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coca-cola / macdonalds and globalisation

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coca-cola / macdonalds and globalisation

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One of Coca-Cola's most effective strategies is its use of independent bottling facilities in the United States and the rest of the world. Franchising the bottling operation of Coca-Cola allows for the main company to not have to invest money in each bottling plant needed to produce its products.

In 1955, Coca Cola released a glocalized advertisement called “Pearl of the Orient.” This 21-minute film shows Filipino traditions, habits and culture. It portrays traditional dances and festivals alongside locals laughing and sipping bottles of Coke.

glocalization -

1. the practice of conducting business according to both local and global considerations. Oxford Dictionary.

However, on the other hand, Macdonalds takes a different approach as it "remains an obviously foreign establishment in the cityscape." https://daily.jstor.org/fast-and-pluribus-impacts-of-a-globalizing-mcdonalds/

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The connection between globalization and McDonald's is a tale of scholarly metonymy. There's no textual shortage of evidence that references the now-global fast food chain's success in other countries, often linking it to themes of self-sufficiency, post-industrial stability, and democracy-formed capitalism.

Among these chunks of research is a more endogenous angle that examines the impact McDonald's has had within offshore cultures; namely, how the American fast food model has been diffused across different countries. Such case studies, which look at individual cultural phenomena and their direct applications to globalization activity, refines not only the framework of McDonald's in theories, but overall globalization processes and strategies as well.

Rather than "styles of preparation or ingredients," fast food is defined by "a style of selling food."

Japan's stylish renditions of fast food practices, for one, existed long before McDonald's came to the country. Given the existing popularity of convenient and on-the-go meals-including conveyor belt sushi and street vendor meals-American fast food chains were bound to succeed. Scholars John W. Traphagan and L. Keith Brown investigate this supposition by employing an ethnographic model of research, building the argument that Japan not only assimilated-but basically swallowed whole-the McDonald's dining model, to the point that younger people especially believe McDonald's is a Japanese company.

Traphagan and Brown emphasize that, rather than "styles of preparation or ingredients," fast food is defined by "a style of selling food." Essentially, McDonald's brought no real paradigm shifts to Japan-but rather constructed a space in which already-formed Japanese cultural practices could continue.

Their case study contrasts with that of geographers Ray Oldakowski and John McEwen, who similarly investigate McDonald's and its cultural assimilation-but in Ecuador. Their evidence shows that the integration of American fast food dining followed a different path, and McDonald's remains an obviously foreign establishment in the cityscape. McDonald's didn't attempt to adapt to Japanese or Ecuadorian culture (for McDonald's, "the strategy has been one of consistency, i.e. McDonald's prefers not to change its way of doing business to adapt to foreign cultures, rather, it changes local cultures to meet its own needs," they note), but Ecuadorians clearly viewed the fast food chain as a deviation from local tastes, unlike Japanese consumers.

"[A] comparison of exterior designs revealed that the McDonald's in Guayaquil [Ecuador] were very similar to the typical McDonald's restaurants in the United States," write the authors. Moreover, the menus were also similar. Only 2 percent of those polled considered the food served at McDonald's similar to Ecuadorian food. In contrast, very few interviewees considered Kentucky Fried Chicken-another American fast food establishment-different from Ecuadorian food. Eighty-four percent reported that KFC was the most similar to Ecuadorian food, and 68 percent said it was actually where they dined regularly.

"Those results suggest that McDonald's might gain new customers, and more visits from existing customers, if they also offered menu items more typical of Ecuadorian food," conclude the authors.

In neither Japan nor Ecuador did McDonald's actively work to adapt itself to the tastes of the host countries, but the depth of integration into local dining customs differed between the two nations. Such observations could prompt additional nation-specific analyses and possibly reveal additional adaptations to the "strategy of consistency" associated with McDonald's. However, the study of the globalization of fast food from a micro-cultural angle requires challenging assumptive attitudes around American businesses and classical theories, with one of the most popular-and infamously controvertible-examples being the Golden Arches Theory of Conflict Prevention, built on tropes of democratic peace through development. Globalization and its effects could also be examined in light of McDonald's cultural impacts on its origin country of America, opening a conversation on socio-economics and class.
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California Law Review, Inc.

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Fast and Pluribus: Impacts of a Globalizing McDonald's - JSTOR Daily

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The connection between globalization and McDonald's is a tale of scholarly metonymy. There's no textual shortage of evidence that references the now-global fast food chain's success in other countries, often linking it to themes of self-sufficiency, post-industrial stability, and democracy-formed capitalism.

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investments and debt management are very

important for distribution companies. Contrary to other sectors, the economic crisis does not generate notable disturbances on the cosmetic market.

clarins case study

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AccuWeather

The need for weather forecasting is consistent across the countries of the world. AccuWeather is recognized as the provider of the world's most accurate weather forecasts and it operates globally, nationally, and locally.

Part of AccuWeather's global strategy involves partnerships with local and national organizations. For example, the company recently partnered with the US Major Arena Soccer League to provide weather forecasts for events. This continued approach to partnerships keeps AccuWeather's focus on local engagement even for such a highly global company.

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Effects of Globalization on the Environment

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Learn about the effects globalization has had on the environment and how businesses can limit the negative effects in pursuit of a sustainable future.

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check out for globalisation and goods/services

https://www.sciencedirect.com/science/article/abs/pii/S0301420723005299

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Revisiting resources extraction perspective in determining the tourism industry: Globalisation and human capital for next-11 economies

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Natural resources and tourism sectors are vital to the growth of many nations and provide several benefits to host towns and nations. Consequently, ec...

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check out for globalisation and exploitation

https://www.interventionjournal.org/article.asp?issn=1571-8883;year=2022;volume=20;issue=1;spage=5;epage=13;aulast=Warria

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Trafficking and exploitation of children in fragile environments: Is prevention possible? Warria A - Intervention

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check out for globalisation and mixing of cultures - chapter 1

https://books.google.co.uk/books?hl=en&lr=&id=YfKkEAAAQBAJ&oi=fnd&pg=PR8&dq=globalisation+and+culture+and+social&ots=8o0DcXu-YW&sig=MGcYLVt2wPNM70kWMO4tlthEod8&redir_esc=y#v=onepage&q=globalisation%20and%20culture%20and%20social&f=false

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Discourses of Globalisation, Multiculturalism and Cultural Identity

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This book examines dominant discourses in multiculturalism and cultural identity globally. It critiques dominant discourses and debates pertaining to multiculturalism and cultural identity, set against the current backdrop of growing social stratification and unequal access to quality education.

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globalisation and economic crisis is when there is a period of severe difficulties which financial institutions, markets,companies and consumers experience at the same time.

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Globalization, the integration of economies, societies, and cultures through the exchange of goods and services, has brought about both advantages and disadvantages. One of the main advantages of globalization is the increased access to goods and services, which has led to greater economic growth, increased employment opportunities, and improved standards of living in many countries. This has been achieved by the opening of markets, the increase of trade, and the growth of investment. Furthermore, globalization has also brought about cultural exchange and diversity, allowing people to learn more about different cultures and customs.

Here are four ways that globalization has had a positive impact on the world economy:
1. More efficient markets
If you can improve the way you produce a good or service by doing things such as outsourcing certain processes or buying from an overseas supplier that offers discounts, you can then afford to lower your selling price which results in increased demand and affordability.

2. Increased competition
Anytime that you have multiple producers competing for a hold of the economy, that’s a good sign for consumers, as the quality of goods and services often goes up as a result.

3.Stabilized security
When your economy depends largely on another country’s economy, it is hard to imagine either one of the countries attacking the other. In a weird sort of way, globalization helped heighten world security.

4.More wealth equality throughout the world
Although many Americans contend that their standard of living has gone down because of globalization, the flip side to this is that hundreds of thousands of people around the world now have jobs, have started their own businesses and can provide comfort for their families.

However, globalization has also brought about some negative impacts. One of the main downsides is the increase in income inequality, as the benefits of globalization have not been evenly distributed among people. Additionally, globalization has led to environmental degradation, as the production and consumption of goods and services has become more widespread. Moreover, globalization has allowed for the spread of harmful practices, such as child labor, slavery, and unethical production methods, which have led to human rights violations and exploitation.

In conclusion, globalization has brought about both positive and negative impacts on goods and services. While it has increased access to goods and services and led to greater economic growth, it has also led to an increase in income inequality, environmental degradation, and the spread of harmful practices. It is crucial to address these negative impacts and work towards a more sustainable and equitable globalization.

Examples of these types of services are software production, motion picture production and distribution, and many financial services. When this is observed, by necessity some services must be consumed in a different location than where they are produced.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity.

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Check out for globalisation and economic crises

https://onlinelibrary.wiley.com/doi/full/10.1111/twec.13230

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check out for globalisation and environmental damage

https://www.proquest.com/openview/deb08170d88df1f42aca8c798d3da439/1?pq-origsite=gscholar&cbl=2032402

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Does Economic Globalisation Harm Climate? New Evidence from European Union

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Explore millions of resources from scholarly journals, books, newspapers, videos and more, on the ProQuest Platform.

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Is no longer the age of globalisation.                                Rather, it is the age of instability, the age of insecurity, the age of inequality and the age of illusion.

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Is no longer the age of globalisation.                                Rather, it is the age of instability, the age of insecurity, the age of inequality and the age of illusion.

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Camelia

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Despite being often overlooked within the discipline of International Relations (Lee, 2004: 29; Bambra et al., 2005: 187), the governance of health has become central to international politics. As recent spatial, temporal and cognitive transformations have developed from accelerated globalization, the determinants of health have become increasingly global and thus beyond the control of any individual nation-state.
The aim of this essay is to examine developments within global health governance in order to illuminate the structural and political dynamics of how health has become a matter of global concern. I argue that although the transformation of global health governance has partially been driven by the structural imperatives of globalization, the highly unequal attention and resources devoted to certain health issues suggest such systemic forces are not alone in shaping the global health agenda.
An account of the processes of political contestation between a wide variety of state and non-state actors is needed to explain differential responses to global health issues as well as the persistence of unequal health outcomes, reflecting the inherently political nature of global health governa

An account of the processes of political contestation between a wide variety of state and non-state actors is needed to explain differential responses to global health issues as well as the persistence of unequal health outcomes, reflecting the inherently political nature of global health governa
An account of the processes of political contestation between a wide variety of state and non-state actors is needed to explain differential responses to global health issues as well as the persistence of unequal health outcomes, reflecting the inherently political nature of global health governa

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1
https://amp.theguardian.com/business/2021/oct/15/how-covid-spread-fear-of-globalisation-and-threatens-a-new-world-order

2
Governments can’t be relying on strategic competitors to supply crucial goods and services

There were already some signs of nationalist-driven challenges to the prevailing system exemplified by Brexit, the rise of Trump, and a growing suspicion that China was not prepared to play by the rules set by the US and its proxies.

More than 80% of industries have experienced supply chain disruptions because of the pandemic, according to a report by the consultancy Deloitte, and about 75% of companies have brought forward plans to repatriate manufacturing from overseas by building smart factories closer to home.

There are similar moves in the UK, where a report predicts factories could make almost £5bn more goods in 2021 as the pandemic and Brexit prompt businesses to bring home production.

In Britain the sudden loss of cheap migrant labour means employers are looking again at their business models

3 the purpose of the article is to inform explore an issue

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1.AGE OF GLOBALIZATION (GUARDIANNEWSPAPER 16/4/2023)

2.The IMF and World Bank meets every six months to discuss economic outlook of the world.
. The global economy has shown an unexpected resilience as energy prices have gone down.
. A major debt crisis is bevoming a real possible.
PURPOSE OF THE ARTICLE
The article delves into the instability of globalization and advise than a plan is urgently needed to mitigate its effects.

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https://www.ft.com/content/f6fe91ab-39f9-44b0-bff6-505ff6c665a1

Globalisation is changing NOT dying. Growing concern over the security of supply chains which may lead to “reshoring” or “friendshoring”. Meanwhile, technology is opening up new areas of growth in services.

reshoring - the practice of moving a business or part of a business that was based in a different country back to its original country: Reshoring is essentially the opposite of offshoring. Cambridge Dictionary

friendshoring - means prioritizing your friends and allies when you develop and strengthen supply chains. Englishfor economists

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What is the future of globalisation? This is among the biggest questions of our time. In June, I argued that, contrary to increasingly widespread opinion, "Globalisation is not dead. It may not even be dying. But it is changing." Among the most important ways in which it is changing is via the growth of services provided at a distance.

Since the industrial revolution, we have, argues Richard Baldwin in his book The Great Convergence, seen three waves of opportunities to trade. First, industrialisation and the revolution in transport generated opportunities for trade in goods. More recently, new information technologies allowed "trade in factories": it became profitable to move entire factories to where labour was cheap. Today, however, the broadband internet allows "trade in offices": if one can work for one's employer from home, someone in India can do so, too.

Moreover, an important difference between the first and second waves, which need movement of objects, and the third, which moves information virtually, is that obstacles to physical trade are far easier to impose than those to virtual trade. It is not impossible to impose the latter, as China shows. But it requires great effort.

As Baldwin argues in four recent blogs, this analytical framework allows us to view the future of trade in a different light from the one now fashionable. In particular, what he calls the "lazy" view of the history of globalisation and trade is misleading on a number of dimensions. What then is that view? It is that after some two decades of very rapid growth, world trade in goods peaked in 2008, under the mortal blow of the financial crisis, as the world turned away from trade.

This view both of what happened and why is misleading.

First, the trade ratio of the world's second largest trader of goods, China, actually peaked before 2008 (in 2006). Those of the third and fourth largest goods traders, the US and Japan, peaked after 2008 (in 2011 and 2014). The ratio of the largest trader, the EU, has not peaked, though it has stagnated.

Second, the biggest fall in the trade ratio is in China. But this does not reflect protectionism abroad or a deliberate turning away from trade by China itself. China has merely normalised reliance on trade relative to its economic size.

Third, in money terms, the biggest cause of the declining trade ratio was the fall in the price of commodities, not a reduction in the volume of trade. This price fall accounted for 5.7 percentage points of the 9.1 percentage points decline in the ratio of goods trade to world output between 2008 and 2020.

Finally, there is indeed evidence of an unwinding of cross-border supply chains, but the turning point seems to be in 2013, after the financial crisis, but before the election of Donald Trump. A principal explanation is the shift of supply chains inside the new suppliers, especially China, the dominant one. Instead of assembling imported intermediates, China now produces them itself.

In all, there exist perfectly natural explanations for the fall in the ratio of world trade in goods to output. But the slowdown in supply chain unbundling is real. Among other explanations, many of those chains have now shifted inside China.

Services are a different story. The ratio of trade in services to world output, though much lower than for goods, has continued to rise. Services are a very heterogeneous group of activities, some of which require movement of people (tourism, for example). But activities in the exceptionally dynamic category of "other commercial services" (OCS) can, in large part, be supplied virtually. These include a highly diverse range of activities. The growth of trade in OCS is also exceptionally dynamic: between 1990 and 2020, trade in goods expanded fivefold while OCS multiplied 11-fold.

A crucial point is that the expansion of trade in such services has depended little on trade agreements. The regulation of service activities focuses on final services, not intermediate ones. There exist, for example, strict rules on selling accounting services in the US. Yet there are few rules on the qualifications of the workers that do the paperwork behind the provision of such services.

Thus, a "US accountant can employ pretty much anybody to tally up a client's travel expenses and collate them with expense receipts". Examples of occupations that provide intermediate as opposed to final services include book-keepers, forensic accountants, screeners of CVs, administrative assistants, online help staff, graphic designers, copy-editors, personal assistants, X-ray readers, IT security consultants, IT help staff, software engineers, lawyers who check contracts, financial analysts who write reports. The list goes on.

As Baldwin argues in The Globotics Upheaval, the potential for this sort of technology-enabled trade is huge. It will also be highly disruptive: the white-collar workers who provide these services in high-income countries are an important part of the middle class. But it will be hard to protect them.

In all, the evidence suggests that natural economic forces have largely been responsible for past changes in the pattern of world trade. Growing concern over the security of supply chains will no doubt add to these changes, though whether the result will be "reshoring" or "friendshoring" is doubtful. More likely is a complex pattern of diversification. Meanwhile, technology is opening up new areas of growth in services.

Needless to say, disasters may change this picture: Covid was disruptive; so, too, is today's energy crisis; and war or the threat of it would disrupt even more. Healthy global trade is a sign of peace, even if it may not cause it. Nobody sane would desire the grim alternatives.

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Globalisation is not dying, it's changing

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What is the future of globalisation? This is among the biggest questions of our time. In June, I argued that, contrary to increasingly widespread opinion, "Globalisation is not dead. It may not even be dying. But it is changing." Among the most important ways in which it is changing is via the growth of services provided at a distance.

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According to oxford academic (2020), Political globalization refers to the expansion qnd intensification of political interrelations across the world.
NEGATIVE EFFECTS OF POLITICAL GLOBALIZATION
The political element of globalization raises serious issues of individual state sovereignty as decisions are gradually globalised.
The social, economic interconnectedness has led to mass migration which has inturn put pressure on traditional forms of governance.
ADVANTAGES
Creation of a single society.
Decentralization of nation state.
Formation of international organisations
Collect efforts towards common problems.

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Positive- The use of English language is good for creating opportunities for people in the third world, but it also threatens their indigenous languages. The learning of english in school is fast replacing local languages.

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Military globalisation

Military globalization is the increase of range within which military power can be projected through the progress of military organization and technology and the increasing strategic interrelation first of regional systems and later of the global system. Similarly to economic globalization, military globalization involves strategic integration of a system as expressed in network of alliances. Contrary to economic and socio-cultural globalization, strategic integration entails centralization under a single command.

Military globalization includes the increasing global strategic integration through the network of alliances and forward deployed bases and installations (power projection), delivery means of global range (primarily nuclear triad), militarization of space and other global commons, networks of anti-ballistic missile.

Ex.The most obvious example of military globalization is the nuclear age and the proliferation of weapons of mass destruction”.

The example that immediately comes to mind involves microchips, which are manufactured in China, but which are necessary to so many US weapon systems, even though China and the US are geopolitical/military rivals. A similar situation existed before WW1, when steam turbine engines (which were necessary for the propulsion of dreadnought battleships and battle cruisers) were exclusively produced by Britain (who had the patent rights), but were sold to both the Germans and the Austro-Hungarian empire for use in their ship construction.

Positive effects
Globalisation has been positive by improving the quality of life in many countries. On the other hand, there have been negative impacts of globalisation, such as increased global inequality, increased corruption, loss of jobs and environmental degradation, to name a few.

Positive:A strong military is an important factor of being a global power, other than for national security and deterrence, it also holds considerable coercive diplomatic power, typically through the threat of force (Wagner, 2014).

Negative effects.
Cons of globalization include:
Unequal economic growth.
Lack of local businesses.
Increases potential global recessions.
Exploits cheaper labor markets.
Causes job displacement.

Globalization has affected human lives in both positive and negative manners, but regardless of its contrasting effects, it has been a major positive contributor to economies worldwide. In America, the effects of globalization are seen through the economic growth and system of trade that allows many products to be made in other countries but sold in America.

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Good example of cultural globalization is trading food and commodities witch are originally from specific part of the world. Coffee is originally from Ethiopia and was consumed only in the Arabid region. Due to commercial trades in the 11th centaury is coffee today know and consumed globally.

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The meaning of cultural and social globalisation is the movement and spread of ideas, knowledge and individuals at a global scale.      * The good example of cultural and social globalisation is internationally popular films, books and TV or series.

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Describes how trade and technology have made the world into a more connected and interdependent place.

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Task: In groups investigate your given topic and feedback to the class via our class Padlet.

Group 1 - Research Globalisation and Environmental Damage

Group 2 -        Research Globalisation and economic crises

Group 3 -        Research Globalisation and  mixing of cultures

Group 4 - Research Globalisation and exploitation of labour

Group 5 - Research Globalisation and Goods / Services

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Individual Task: Research the consequences and effects of Globalisation

1.Find a journal article by typing key words into Google Scholar and use skimming/scanning and intensive reading skills to provide at least 5 bullet points  that summarise the main points of the article

2.Make sure that you provide a Harvard reference

3.Add what you find to our Class Padlet

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Task: In groups investigate your given topic and feedback to the class via our class Padlet.

Group 1 - Research Economic Globalisation
Group 2 - Research Cultural/ Social Globalisation

Group 3 - Research Technological Globalisation

Group 4 - Research Political Globalisation

Group 5 - Research Military Globalisation

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Task before to start learning about globalisation

What images spring to mind when you hear the word ‘globalisation’?

Add these images to our Class Padlet

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The key objectives for the UK are:

•Stable low inflation - the Government’s inflation target is 2.0% for the consumer price index.

•Sustainable growth – growth of real gross domestic product – sustainable in keeping inflation low and reducing the environmental impact of growth.

•Improvements in productivity – this is designed to improve competitiveness and global trade performance

•High employment - the government wants to achieve an increase employment and eventually a situation where all those able and available can find meaningful work

•Rising living standards and a fall in relative poverty – cutting child poverty and reducing pensioner poverty.
•Sound government finances - including control over state borrowing and the total national debt

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https://www.oxfordreference.com/display/10.1093/acref/9780199234899.001.0001/acref-9780199234899;jsessionid=F88BE254AD8E26809502C4B5B7520743

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Jonathan Law

'It will help to demystify terms such as bear hugs, white/grey knights, cash-cows and churning ... strongly recommended'- TES

This wide-ranging and authoritative dictionary contains 7,000 entries covering all areas of business and management, including marketing, organizational behaviour, business strategy, law, and taxation. Written by a team of experts, it features the very latest terminology, for example, the recent vocabulary associated with structured finance and the associated subprime lending crisis, including collaterized debt obligation and special purpose vehicle.

The new edition of this established bestseller dispels modern financial and management jargon, defining entries in a clear, concise, and accessible manner. It contains US business terms, general management concepts (e.g. competence, knowledge management), named theories (e.g. Tannenbaum and Schmidt, Blake and Mouton) as well as expanded coverage of the contemporary theory of the firm and human resources. New terms are included from the fast-moving areas of current affairs (e.g. MiFID), Internet business and information technology, while the new Companies Act receives full coverage. With recommended web links for many entries, this edition is more informative than ever. This A-Z reference work is essential for business students, teachers and professionals, and useful for anyone needing a guide to business terminology.

Bibliographic Information

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'It will help to demystify terms such as bear hugs, white/grey knights, cash-cows and churning ... strongly recommended'-TESThis wide-ranging and authoritative dictionary contains 7,000 entries covering all areas of business and management, including marketing, organizational behaviour, business strategy, law, and taxation.

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https://www.esma.europa.eu/sites/default/files/2023-05/Factsheet_on_how_do_inflation_and_the_rise_in_interest_rates_affect_my_money.pdf

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Ways the government do policies for economic growth.

In the short term, governments may focus on macroeconomic stabilization—for example, expanding spending or cutting taxes to stimulate an ailing economy, or slashing spending or raising taxes to combat rising inflation or to help reduce external vulnerabilities.

Governments may make different choices when prioritising between preservation of existing businesses and net new creation. However, each is likely to evaluate and deploy a combination of the following interventions to support economic recovery:
Increasing investment

Increasing revenue

Reducing cost

Encouraging innovation

Supporting workforce readiness

Providing direct capital injections through investments, loans and grants.

Injecting capital into the banking system to spur investment.

Increasing activity through public–private partnership structures.

Attracting incoming foreign direct investment (FDI) and stemming the loss of outgoing FDI.

Example
The Growth Plan makes good the government’s commitment to cut taxes for people and businesses. The government will cut National Insurance contributions from November and cancel the Health and Social Care Levy and next year’s planned rise in Corporation Tax, keeping it at a competitive rate of 19%.

The government is going further to deliver tax cuts. From 23 September the threshold from which Stamp Duty Land Tax (SDLT) must be paid will be doubled to £250,000 for all home purchases. The threshold at which first-time buyers begin to pay SDLT will increase from £300,000 to £425,000, and the maximum value of a property on which first-time buyers’ relief can be claimed will also increase from £500,000 to £625,000.

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Monetary policy -Highter interest rate reduce demand in the economy,leading to lower economic growth  and lower  inflation
Control of money  supply,controlling  money supply can control inflation
Supply  side policies :policies to increase the competitiveness and efficiency of the economy
Fiscal policy  a higher  rate of income tax could reduce spending demand and inflationary pressure
Price control trying to control wages help to reduce inflationary pressures.

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When the country is in a recession the appropriate policy is to increase spending ,reduce taxes or both.
Such expansionary actions will put more money in the hands of businesses and consumers encouraging businesses to expand and consumers to buy more goods and services.

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Policies for reducing unemployment

Monetary policy – cutting interest rates to boost aggregate demand (AD)

Fiscal policy – cutting taxes to boost AD.

Education and training to help reduce structural unemployment.

Geographical subsidies to encourage firms to invest in depressed areas

Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending. Lower taxes increase disposable income (e.g. VAT cut to 15% in 2008) and therefore help to increase consumption, leading to higher aggregate demand (AD).

With an increase in AD, there will be an increase in Real GDP (as long as there is spare capacity in the economy.) If firms produce more, there will be an increase in demand for workers and therefore lower demand-deficient unemployment. Also, with higher aggregate demand and strong economic growth, fewer firms will go bankrupt meaning fewer job losses.

Keynes was an active advocate of expansionary fiscal policy during a prolonged recession. He argues that in a recession, resources (both capital and labour) are idle. Therefore the government should intervene and create additional demand to reduce unemployment

Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending. Lower taxes increase disposable income (e.g. VAT cut to 15% in 2008) and therefore help to increase consumption, leading to higher aggregate demand (AD).

With an increase in AD, there will be an increase in Real GDP (as long as there is spare capacity in the economy.) If firms produce more, there will be an increase in demand for workers and therefore lower demand-deficient unemployment. Also, with higher aggregate demand and strong economic growth, fewer firms will go bankrupt meaning fewer job losses.

Keynes was an active advocate of expansionary fiscal policy during a prolonged recession. He argues that in a recession, resources (both capital and labour) are idle. Therefore the government should intervene and create additional demand to reduce unemployment

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"UK drug companies fined £260m for inflating prices for NHS"
The investigation found that companies overcharged NHS for hydrocortisone tablets for almost decade.
The article relate to UK Competition policy and the legislative framework.

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1Auden Mckenzie and Actavis UK used their position as the sole providers of hydrocortisone to inflate the price of the drug.
The investigation found that the companies were able to inflate the price of hydrocortisone tablets by more than 10,000% compared with the original branded version on sale.

2 Because of the demand in the market the companies were able to collude in order to rise revenue .

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https://www.thisismoney.co.uk/money/markets/article-9469335/Virgin-Media-O2-merger-given-thumbs-CMA.html

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https://capital.com/adevinta-s-wins-cma-approval-for-ebay-ad-business

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https://www.theguardian.com/business/2021/jul/15/uk-drug-companies-fined-260m-overcharging-nhs

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The UK economy will likely escape a recession. That,s thanks to a better outlook for energy prices, a more resilience global environment.we expect growth to remain weak though with real GDP at just 0.3%in 2023.rasing to 1.1%in 2024.

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https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/covid-19-implications-for-business

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Our latest perspectives on the coronavirus outbreak, the twin threats to lives and livelihoods, and how organizations can prepare for the next normal.

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Britain’s economy suffered the worst recession in 100 years as the initial wave of Covid-19 and late entry into a tight lockdown caused a sudden stop in activity across the country.

Inflation has risen to the highest rate since 1992 in the fallout from Covid-19, with Russia’s invasion of Ukraine threatening to add to the problem.

The Guardians

23/03/2022

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.  British businesses are slowing down hiring just as the number of people looking for work after covid rises.
. There are lingering uncertainty over the uk economic outlook after brexit and covid according to the Gardian.
. The availability of candidates applying for jobs in the uk rose by the sharpest rate in June since the height of the pandemic December 2020.

THE PURPOSE OF THE ARTICLE ABOUT SLOW HIRING BY UK FIRMS AMID THE ECONOMIC UNCERTAINTY

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•The NI Composite Economic Index (NICEI) expanded by 1.2% over the quarter and grew by 1.7% on an annual basis.

•UK gross domestic product (GDP) grew by just 0.1% over the quarter and by 0.2% over the year.

•However, growth was not seen across all sectors. Manufacturing and services expanded while retail and construction saw reduced activity.

Economic Index; Definition: In statistics, economics, and finance, an index is a statistical measure of change in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment.

Camelia

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https://www.imf.org/en/News/Articles/2023/05/22/mcs052323-united-kingdom-staff-concluding-statement-2023-article-iv-mission

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United Kingdom: Staff Concluding Statement of the 2023 Article IV Mission

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or 'mission'), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF's Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC: Buoyed by resilient demand in the context of declining energy prices , the UK economy is expected to avoid a recession and maintain positive growth in 2023. Still, economic activity has slowed significantly from last year and inflation remains stubbornly high following the severe terms-of-trade shock due to Russia's war in Ukraine and, to some extent, labor supply scarring from the pandemic. Monetary policy will need to remain tight in order to keep inflation expectations well-anchored and bring inflation to target. Fiscal policy should continue to be aligned with monetary policy in the fight against inflation, while protecting key public services and the vulnerable. The UK financial system has weathered the recent global banking stress well. Continued strong oversight, including of smaller banks and the diverse non-bank financial sector, will be critical to preserve UK financial stability, which the IMF sees as a global public good. Realizing the UK's full growth potential will require wide-ranging, further evidence-based reforms, including addressing the post-pandemic rise in labor inactivity, mainly due to long-term illness; removing impediments to business investment, especially policy and regulatory uncertainty; and enhancing public investment and transformational spending to boost productivity and accelerate the green transition.

Economic Outlook and Risks

The outlook for growth, while improving somewhat in recent months, remains subdued. Staff forecasts growth to slow to 0.4 percent in 2023, held back by tighter monetary and fiscal policies needed to curb inflation, and lingering impacts of the terms-of-trade shock. This latest forecast represents a 0.7 percentage point upgrade to the IMF's April World Economic Outlook forecast of -0.3 percent and reflects higher-than-expected resilience in both demand (stronger wage keep-up with inflation, a less contractionary fiscal stance in 2023, and improved confidence amid somewhat reduced post-Brexit uncertainty) and supply (declining energy costs and normalization of global supply chains). Growth is projected to rise gradually to 1 percent in 2024, as disinflation softens the hit to real incomes, and to average around 2 percent in 2025 and 2026, mainly on the back of a projected easing in monetary and financial conditions. Thereafter, growth is projected to settle at 1½ percent (staff's estimate of trend growth). Declining energy prices and widening economic slack are expected to substantially reduce inflation to around 5 percent y/y by end-2023; and below the 2 percent target by mid-2025.

Risks are considerable in the period ahead. The major near- to medium-term risk is greater-than-anticipated persistence in price- and wage-setting, which would lead to higher inflation for longer. Should such upside risks to inflation materialize, headwinds to growth would likely be intensified by tighter demand-management policies needed to combat inflation; and/or a drift-up in inflation expectations, which could lead to a re-pricing of long-term financial assets, with adverse macro-financial spillovers. Downside risks also include a further tightening in global financial conditions that restrains credit and trading partner demand. The impact on growth would be amplified if there is contagion to the UK financial sector and/or if adverse macro-financial feedback loops, such as a housing market correction, are triggered.

Macroeconomic Management Priorities

The authorities have acted decisively to fight inflation. The Bank of England (BoE) was the first major central bank to lift its policy rate (in December 2021) and has since hiked Bank Rate by 440 basis points, moving it from substantially below, to sizably above, staff's estimate of the neutral interest rate. The BoE was also the first to undertake quantitative tightening (QT), which commenced in March last year with passive run-off and accelerated in November with active gilt sales. Given transmission lags, sizable rate hikes implemented since August are expected to have their peak impact on demand and inflation from the second half of 2023. Fiscal policy has also appropriately rotated to consolidation mode, supporting disinflation, and successfully re-establishing credibility following the September 'mini-budget' stress episode.

But inflation is showing greater-than-expected persistence. Inflation momentum, measured with annualized 3-month core inflation rates, remains strong, at about 5 percent in March. Measures of underlying inflation-such as services inflation and firms' price and wage-setting expectations-also remain well above the 2 percent target. Staff's analysis of historical inflation shocks indicates that high inflation is often persistent, especially in the aftermath of large terms-of-trade shocks, and cautions about the high prevalence of "premature celebrations," characterized by a decline in inflation as the initial shock dissipates, only to reemerge or plateau at an elevated rate.

Monetary policy will need to remain tight to keep inflation expectations well-anchored and bring inflation back to target. Inflation is projected to return to the 2 percent target only by mid-2025, 6-months later than in staff's April forecast, and risks to this trajectory are tilted to the upside. Accordingly, some further monetary tightening will likely be needed, and rates may have to remain high for longer to bring down inflation more assuredly. This said, elevated uncertainty about the macroeconomic outlook and inflation persistence merits continuous review of the pace and magnitude of monetary tightening. The BoE should continue to focus on underlying measures of inflation-such as wage growth and services inflation-and see-through base effects in energy prices, which would entail a material decline in headline inflation in the coming months, but which may not be sustained.

The QT strategy should continue as envisaged. Shrinking the BoE's balance sheet would help reduce its footprint in financial markets and establish headroom for future asset purchases in case adverse shocks materialize. As the medium-term target range for the BoE's balance sheet hinges on considerations about needed system-wide reserves, which are subject to uncertainty and can change over time, staff sees advantages in the BoE's incremental approach to shrinking its balance sheet while relying on Bank Rate as the key monetary policy instrument.

The last two budgets have aligned fiscal policy with monetary policy in the fight against inflation and should stabilize debt. The authorities have set out a medium-term fiscal consolidation path that envisages, under staff's forecast, a 3 percent of GDP headline deficit reduction between FY2022/23 and FY2027/28, with public sector net debt (excluding the BoE) stabilizing at 97 percent of GDP at the end of the forecast period. With a close-to-neutral fiscal stance in 2023, and a contraction thereafter, fiscal policy is supporting monetary policy in lowering inflation. The balanced composition and gradual phasing of the planned consolidation should help soften the impact on near-term growth while reducing fiscal imbalances.

Fiscal policy should stay the course by adhering to the announced consolidation path. In the near term, saving any revenue overperformance-which would likely portend resilient demand and inflation persistence-would avoid complicating the task for monetary policy, and would also help rebuild fiscal buffers that have been eroded by a succession of adverse shocks. Given the recent easing in energy prices, it would be important to ensure that the Energy Price Guarantee scheme expires as planned, and that any future support-in the event of resurgent energy prices-is well-targeted. To this end, investing now in data and IT systems could help the authorities reach vulnerable households outside the welfare system in the future.

Over the medium term, the fiscal strategy will need to take better account of spending pressures to preserve service delivery, and investment needs to enhance the growth potential. The Spring Budget assumes expenditure envelopes after FY2024/25 that, under realistic allocations for public services such as health, education, welfare, pensions and security could imply large reductions for some departmental budgets. Moreover, additional funding will likely be needed to account for possible pay agreements in the context of ongoing industrial action; address well-known challenges in the National Health Service (NHS) and social care; and enhance the growth potential via public investments in skills, innovation, infrastructure, and the green transition.

Accommodating these critical needs, while delivering the announced medium-term consolidation, will require structural expenditure savings and high-quality revenue measures. To this end, we see opportunities in replacing the triple lock on pensions with the best practice of inflation-indexation; strengthening carbon taxation to more assuredly deliver the UK's ambitious Net Zero targets; reforming property taxes, including by updating real estate valuations and rebalancing away from transaction taxes which constrain housing and labor mobility; and improving the efficiency and fairness of the tax system by eliminating loopholes in wealth and income taxation, and national insurance contributions.

The calibration of macroprudential policies is finely balanced but continued monitoring of credit conditions and financial stability risks is warranted. The current credit downturn is showing signs of bottoming out. Household and corporate balance sheets have thus far shown resilience to the economic slowdown and rise in interest rates. However, corporate insolvencies have risen, and pressures have intensified in the mortgage and commercial real estate markets. Against this backdrop, staff supports the BoE's Financial Policy Committee's (FPC) decision to keep the countercyclical capital buffer (CCyB) at 2 percent for now but encourages continued close monitoring of credit conditions and financial stability risks to calibrate the buffer going forward. At the same time, strengthening the BoE's top-down stress testing capacity, as recommended by the 2022 Financial Sector Assessment Program (FSAP), will provide more timely analyses of systemic risks.

Recent global banking stress events underscore the importance of continued strong regulation and supervision of all banks. Major UK banks maintain capital and liquidity buffers well above prudential requirements, which should allow them to endure significant stress. The Prudential Regulation Authority's (PRA) intensified liquidity monitoring in the wake of recent global banking stress is welcome. Staff encourages the authorities to deepen their understanding of depositor behavior via expanded data collection and analysis. This will help inform any future international policy deliberation on the liquidity coverage ratio (LCR), as well as potential adjustments to domestic stress testing with a view to informing liquidity risk assessments. Separately, the PRA is working on a new Strong and Simple Framework to simplify the prudential framework for non-systemic domestic banks and building societies while maintaining their resilience. As recommended in the 2022 FSAP, the PRA should carefully weigh pros and cons before amending supervisory requirements for smaller banks.

The BoE's financial stability intervention swiftly restored market functioning during the pension funds' liability-driven investment (LDI) crisis last fall. Several factors contributed to the success of the intervention, notably, timely market intelligence; close coordination among key stakeholders, including overseas regulators; the use of reserve pricing for gilt purchases, which helped distinguish the operation from quantitative easing (QE); and firm public communication on the temporary/targeted nature of the intervention, which reinforced the needed swift actions from pension funds to recapitalize their LDI strategies, and curtailed moral hazard. Staff also welcomes the authorities' more recent actions to strengthen the resilience of LDI funds to large interest rate increases and supports the FPC recommendation that the remit of The Pension Regulator (TPR) take into account financial stability considerations.

The episode nonetheless calls for a redoubling of efforts, including globally, to reduce non-bank financial institution (NBFI) vulnerabilities. Further policy actions are needed to: (i) strengthen NBFI liquidity (domestically, but also in coordination with the Financial Stability Board (FSB) and other jurisdictions) via enhanced liquidity management and operational readiness to face margin calls, and more stringent liquidity regulation of NBFIs holding leveraged exposures in core markets; (ii) improve the understanding of risks posed by NBFIs, including through the authorities' ongoing "system-wide exploratory scenario"; (iii) close data gaps, which requires securing enhanced cooperation among national regulators and coordination with other major jurisdictions and the FSB; and (iv) consider allowing the extension of BoE liquidity backstops to NBFIs that are systemically important and adequately supervised.

Reforms to Enhance Policy Frameworks

The fiscal framework should be further strengthened by drawing on the experience of the 'mini-budget' stress episode. Staff recommends that all major discretionary fiscal policy changes be accompanied with a full set of macroeconomic and fiscal forecasts by the Office for Budget Responsibility (OBR), unless the OBR assesses that such a forecast is not necessary. A mechanism could also be established for the OBR to provide to parliament an analysis of the impact of any proposed changes in the fiscal rules before these are voted upon. Moreover, better defined escape clauses (with clear conditions under which the rules could be suspended and reactivated) would help avoid the potential loss of credibility associated with very frequent changes to the rules. In this context, building on the UK's strong institutions, the authorities could also consider the case for a framework anchored in the probability of debt stabilization that has the potential to be stabler, while also providing somewhat greater flexibility.

Recent bank resolutions have highlighted opportunities for further strengthening resolution frameworks. The BoE effectively used its resolution powers under the 2009 Banking Act to facilitate the sale of Silicon Valley Bank (SVB) UK to HSBC UK Bank plc, which fully protected all SVB UK depositors without any cost to the taxpayer. However, as shown by the recent global banking stress, the observed high speed of deposit withdrawals, the risk of significant disruptions to businesses holding uninsured deposits, and the lack of loss-absorbing capacity (for example via Additional Tier 1 or 2 bonds) held by smaller banks, have emerged as complicating factors for effective depositor protection in a resolution scenario. In this context, the authorities are considering options to improve their approach to depositor payouts in case of bank failure. Reforms in this area should be supported by careful analysis of depositor data and possible moral hazard implications. In this context, as recommended in the 2022 FSAP, the Financial Services Compensation Scheme should build up a prefunded deposit insurance fund with an appropriate target level, to expand its financial firepower with sufficient funds under its direct control and investment.

The financial regulatory reforms currently in train are ambitious and should preserve the primacy of financial stability, safety and soundness, and market integrity objectives. While many details on the reforms are still pending, staff stresses that any reforms should: (i) safeguard, in line with FSAP recommendations, the primacy of the FPC's financial stability objective and strengthen its focus on global financial standards and cross-border surveillance; and (ii) allow for adequate time for consultation and consideration of proposed changes, to produce balanced outcomes on stability vs. innovation, with competition and innovation mandates subordinate to that of financial stability. In this regard, any adjustment to the ring-fencing regime for banks should be carefully weighed; and the review of the Senior Managers and Certification Regime (SMCR) should maintain its robustness.

Structural Policies to Uplift Growth and Accelerate the Green Transition

The authorities are cognizant of, and taking measures to, address the UK's long-term challenges of weak labor supply, investment, and productivity growth. The Spring Budget set out supply-side measures, notably the increase in childcare support and the introduction of a capital investment allowance, which should have a positive effect on medium-term growth. Moreover, the recent decline in uncertainty due to the "Windsor Framework" agreement and a more measured approach for retained EU laws will also favorably impact business investment. Finally, the Chancellor's 4Es' vision (enterprise, education, employment, everywhere) aims to enhance innovation and productivity by targeting key growth areas, such as advanced manufacturing, life sciences, and clean energy.

To add momentum to these efforts, staff recommends further ambitious, evidence-based reforms, including: (i) further enhancing policy certainty via wider permanent capital investment incentives and predictable tax and regulatory regimes for businesses; (ii) boosting small and medium-sized firms' access to finance and R&D support (including, for example, via a return to Horizon Europe); (iii) easing planning restrictions and accelerating catalytic public investments for the green transition and the delivery of critical network and healthcare infrastructures; (iv) raising labor force participation and productivity by strengthening skills and education outcomes, and improving healthcare services; and (v) fine-tuning the immigration system to alleviate sectoral and skilled labor shortages and enhance labor market flexibility.

The green transition should be expedited to meet Net Zero objectives and enhance energy security . The UK has set for itself ambitious targets, underpinned by a strong legal framework, and has recently articulated some plans to achieve these targets. Still, there is scope for additional quantifiable measures to fully meet the Net Zero targets, including by more rapidly extending the UK's ETS and legally clarifying the phase-in of carbon pricing regulations. It would also be desirable to provide more incentives for the green transition (e.g., by expanding the grant program for low-income households' heat pump installations and home insulation) and remove existing bottlenecks, including by setting out longer-term plans to attract private investment. The transition to a greener energy mix would also open up further opportunities to lower energy input costs and increase energy security.

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United Kingdom: Staff Concluding Statement of the 2023 Article IV Mission

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Buoyed by resilient demand in the context of declining energy prices, the UK economy is expected to avoid a recession and maintain positive growth in 2023. Still, economic activity has slowed significantly from last year and inflation remains stubbornly high following the severe terms-of-trade shock due to Russia's war in Ukraine and, to some extent, labor supply scarring from the pandemic.

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The impact of Brexit on the UK economy: Reviewing the evidence                                                 • First, trade.  The most obvious and direct impact of Brexit was to reintroduce significant barriers to trade between the UK and its largest trading partner, so it’s    here that the impacts should be the most salient.                                                         • Most academic analysis suggests that Brexit is at least partly responsible. Using synthetic differences-in-differences, Du et al. (2023) find that Brexit has had a large and continuing negative impact on UK goods exports, with particularly large impacts on smaller firms.  • Second, immigration.  Again, the obvious and direct impact of Brexit was to end free movement, and there’s no doubt that has restricted labour supply – net immigration from the EU, which peaked at over 200,000 a year at the time of the referendum, is now negative.

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https://www.ft.com/content/a843eb76-fccb-409a-bb13-8008eb8c070b

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Finance & economics from The Economist. You've seen the news, now discover the story.

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1. https://www.britishchambers.org.uk/news/2023/06/bcc-economic-forecast-upgrade-to-gdp-but-uk-economy-flatlining
2
The UK economy remains on course to avoid a technical recession. A growth rate of 0.3% is expected for the whole of 2023, rising slightly to 0.6% in 2024, and 1.0% in 2025.
Average earnings are expected to grow by 4.5% in 2023 and will lag behind inflation until 2024 when they will increase by 2.6%.

3
Inform/report/examine an issue
4

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Covid-19 ripped a £400bn hole in the government’s finances. The money was used largely to support the economy and it succeeded in allowing industries and workers to bounce back once restrictions were lifted.

https://amp.theguardian.com/business/2022/nov/13/truss-brexit-covid-who-is-really-to-blame-for-the-tories-fiscal-hole

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The October 2021 Centre for Macroeconomics survey asked the members of its UK panel to evaluate the performance of UK fiscal rules to date and which rules would best serve the British economy going forward. This column reveals that the majority of the panel thinks the sequence of fiscal rules in place in the UK since 1997 have caused a material reduction in UK public debt.
A fiscal rule is a constraint self-imposed by a government, setting limits on its tax, spending, and borrowing policies. These typically take the form of limits to public deficits, debt, spending, or interest expenditure. Nearly 100 countries around the world had a fiscal rule in place by 2015.  Fiscal policy is legislated through a political process and a large academic literature shows that politics may lead to more borrowing than is socially desirable (see Alesina and Passalacqua 2016 and Yared 2019 for reviews).
This month’s Centre for Macroeconomics (CfM) survey asks the panel to evaluate how effective fiscal rules have been and what type of institutional arrangement is preferable going forward. It consists of three questions. The first two questions ask how the fiscal rules that have been in place since 1997 have affected the UKs level of public debt and its economic performance.

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https://www.instituteforgovernment.org.uk/explainer/fiscal-rules-history

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Without rules, fiscal policy is known to suffer from 'deficit bias': politicians face an incentive to borrow to spend more in the short term, and leave future generations (and future politicians) to deal with the consequences. Governments therefore use fiscal rules as a way to commit themselves to responsible management of the public finances and so increase confidence among taxpayers and investors. Since 1990 almost all OECD countries have adopted some sort of fiscal rule

What fiscal rules have UK governments adopted?

The first fiscal rules in the UK were adopted by the New Labour government in 1997. Those rules applied for over a decade, but since then the UK's rules have changed more regularly. The current iteration of fiscal rules (set in November 2022) is the ninth set the UK has had. These eight sets of rules between them comprised 22 different rules in total, summarised in the table below.
Table: Fiscal rules in the UK since 1997, and whether they were missed (X) or met (✓) Note: A rule is considered met if the conditions set out by the rule are met, even if the rule was no longer in force by the time compliance could be evaluated. A rule is considered missed if the conditions are not met or, for rolling targets, if the government was not on track to comply with the rule when it was abandoned.
What is being targeted?

When does the target need to be met?

Have previous fiscal rules been broken?

In the first 10 years of the UK having fiscal rules, neither rule changed and neither was broken - although the way the 'golden rule' (that government would only borrow to invest, not manage day-to-day spending) was assessed was changed when it appeared on course to be missed. However, the 2008 financial crisis changed this, leading to those first rules being abandoned.

Are fiscal rules still useful even though they are often broken?

Golden rule

Revenues should cover day-to-day spending over the economic cycle

Sustainable investment rule

Over the economic cycle, debt must average no more than 40% of GDP

Fiscal mandate

Cyclically-adjusted current budget should be in surplus at the end of a rolling five-year horizon

Supplementary debt target

Debt (% GDP) to be falling in 2015/16

Fiscal mandate

Cyclically-adjusted current budget should be in surplus at the end of the third year of the rolling five-year forecast period

Supplementary debt target

Debt (% GDP) to be falling in 2016/17

Investment cap

Public Sector Net Investment should be below 3% on average over the five-year forecast period

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Fiscal rules in the UK since 1997 | Institute for Government

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Fiscal rules are restrictions on fiscal policy set by a government to constrain its own decisions on spending and taxes.

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https://www.instituteforgovernment.org.uk/explainer/current-fiscal-rules

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Fiscal rules are restrictions on fiscal policy set by the government to constrain its own decisions on spending and taxes. For example, they might require that the deficit (the difference between government spending and revenues) stays below a certain level. Another explainer looks at the rationale for fiscal rules in more detail and sets out previous rules adopted in the UK.

What are the government's current fiscal rules and is it on track to meet them?

The government set out new fiscal rules in November 2022, after the previous set was on course to be missed due the economic effects of the cost of living crisis and higher interest rates.

1. Debt should be on course to fall as a share of national income in five years' time

The government calls this its mandate for fiscal policy: its primary fiscal rule. It requires that debt (excluding the Bank of England) should be forecast to fall as a share of national income between the 4th and 5th years of the forecast period. For the latest forecast, published in March 2023, this meant that the debt-to-GDP ratio had to be forecast to be lower at the end of the 2027/28 financial year than at the end of 2026/27. The government had 0.2% of GDP (£6.5 billion) of headroom against this target.

2. Public sector borrowing should not exceed 3% of GDP in the five years

This rule requires that the difference between total government spending and total government revenues (borrowing, or the deficit) should be forecast to be less than 3% of GDP in the fifth year of the forecast period.

When the latest forecast was published in March 2023, this meant that a deficit below this level was required in 2027/28. The government had 1.3% of GDP (£39.2bn) of headroom against this target.

3. Some types of welfare spending must remain below a pre-specified cap

This rule provides additional constraints on spending on social security payments for working-age people and children. (Payments to pensioners - most notably the state pension - are explicitly excluded.) Unlike earlier iterations of this rule, it adjusts if the economic forecast changes increase expected social security spending (for example, if wages are predicted to be lower or unemployment higher, leading to higher social security payments). This rule therefore effectively limits the extent to which any policy changes can increase social security spending. According to the March 2023 forecast this target will not be met and will be exceeded by £4.1bn.
Five other measures will also be considered
On top of these three rules, the government's Charter for Budget Responsibility explicitly states that the government will make fiscal policy by considering five other metrics, although it does not set targets for these.

Three relate to debt servicing:

1. The affordability of debt servicing

2. The sensitivity of debt servicing to changes in the economy

3. The proportion of government debt issuance held overseas

The other two relate to alternative measures of the public sector balance sheet:

1. Public Sector Net Financial Liabilities

2. Public Sector Net Worth

Do these rules always apply?

The Charter for Budget Responsibility allows the Treasury to temporarily suspend the rules in the event of "significant negative shock", though the mandate does not specify what would constitute such a shock so it is at the Treasury's discretion.

From that point onwards, the chancellor would need to present to parliament a plan for returning the public finances to a position where the rules could be reinstated at every budget.

How do these rules differ from recent fiscal rules in the UK?

In many ways these rules are similar to past iterations adopted by this and previous governments. They target debt and a measure of annual borrowing, and do so in a forward-looking way, so the rule always requires that the government be forecast to be on track to meet the target in the future, rather than the rules ever binding in the current year.

However, the rules differ from previous ones in two important respects.

First, the borrowing rule is unusual in targeting the overall deficit rather than the current deficit (which excludes investment spending). Since 2019, all deficit targets have been on the current rather than total deficit, with an additional limit on investment spending. And this is the first rolling total deficit target adopted in the UK. Current deficit rules encourage governments to continue to spend on investment that will bring long-term benefits, rather than meeting rules in the short term by cutting investment budgets as has previous governments with total deficit rules have tended to do.

Second, the requirement that the targets be met in the fifth year of the forecast is a less binding rule than previous ones. Rolling targets since 2015 have required that the rule be met in the third year of the forecast rather than the fifth. This gives the government more leeway: it can be forecast to run large deficits and have debt rising as a share of GDP for most of the forecast horizon.

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Current UK fiscal rules | Institute for Government

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What are the government's current fiscal rules and is it on track to meet them?

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Visit the UK Institute for Government website and familiarise with the homepage and with the fiscal policy strategies in UK

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Visit the UK Institute for Government website and familiarise with the homepage and with the fiscal policy strategies in UK

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https://www.instituteforgovernment.org.uk/

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Monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal policy refers to the government's decisions about taxation and spending.

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Abstract

Brexit and the election of Donald Trump both seem to originate from a deep dissatisfaction with globalization and what it seemingly represents. The growing discontent against the rapid growth of global goods, services, capital and labor began during the third wave of globalization in 1979/80. This cumulated into a full-blown backlash against globalization in the aftermath of the 2007/08 global financial and economic crisis. The then combustible mix of historic disruptions to the flow of capital in the USA (and partly the UK) and the unchecked growing income gaps in the West erupted when the global immigration crisis began to unfold.

This chapter further stipulates that the third wave of globalization may have run its course and that the world is entering a fourth wave, possibly marking the beginning of a period of a reversal of multilateralism and regionalism in favor of bilateralism, and of further restrictions on immigration and labor mobility.

Keywords

Notes

1. 1.

The first phase of globalization can be identified with the period coinciding approximately with the "Belle Époque", otherwise known as the "Beautiful Era or the Golden Age" (and that corresponds approximately with the US "gilded age") from the beginning of the 1870-with the opening of the Suez Canal and coinciding also with the coming of age of the French Third Republic-until WW1. This was a period characterized by peace, prosperity, optimism coupled with scientific/technological and cultural advancements in Europe where literature, music, theater, and visual art thrived. After the interlude of the two world wars, the second phase of globalization began from 1945 through the economic recovery and the high growth rates of the 1960s, to the instability of the 1970s (Della Posta 2009, 2017).

2. 7.

Several well established and respected economists agreed with some of those complaints, including Rodrik ( 1997, 1999, 2000, 2007) and Stiglitz ( 2002, 2005). The critical aspects of the process of economic globalization were also analyzed by Della Posta ( 2009), European Commission ( 2002) and Oxfam ( 2002). Bhagwati ( 2004) instead is among the most convinced supporters of the benefits of economic globalization, especially when considering trade in goods and services. The role of economic theory relative to globalization was clarified by Krugman and Obstfeld: "If the market failures are not too bad to start with, a commitment to free trade might in the end be a better policy than opening the Pandora's box of a more flexible approach. This is, however, a judgment about politics rather than economics. We need to realize that economic theory does not provide a dogmatic defense of free trade, something that it is often accused of doing" (Krugman and Obstfeld 2008, p. 229). As argued by Rodrik ( 2016a), the fear that acknowledging some problems with globalization would have opened the way to populist critics, made most economists always support the case of internationally free markets, thereby undermining the credibility of the profession. This fits perfectly with what Zingales ( 2015) also wrote about the fact that too often economists have seemed to flank even bad financial institutions, again, just because not doing it would have meant to risk giving arguments to the anti-globalizers.

3. 18.

Brexit may still have a positive impact on the process of European integration (Torres and Bongardt, 2016). The effects of Brexit on the EU is also discussed by De Grauwe ( 2016) and Pisani-Ferry et al. ( 2016)

Author information

Authors and Affiliations

1. Dipartimento di Economia e Management, Università di Pisa, Pisa, Italy

Pompeo Della Posta

2. School of Business, International Business Department, The George Washington University, Washington DC, USA

Scheherazade S. Rehman

Editor information

Editors and Affiliations

1. CIDEEFF - School of Law, Univ of Lisbon, University of Lisbon, Lisbon, Portugal

Prof. Nazaré da Costa Cabral

2. CIDEEFF, University of Lisbon School of Law - Faculdade de Direito da Universidade de Lisboa, Alameda da Universidade - Cidade Universitária, Lisbon, Portugal

Prof. José Renato Gonçalves

3. CIDEEFF, University of Lisbon School of Law - Faculdade de Direito da Universidade de Lisboa, Alameda da Universidade - Cidade Universitária, Lisbon, Portugal

Prof. Nuno Cunha Rodrigues

About this chapter

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Della Posta, P., Rehman, S.S. (2017). Brexit: Origins and Future Perspectives. In: da Costa Cabral, N., Renato Gonçalves, J., Cunha Rodrigues, N. (eds) After Brexit. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-66670-9_2

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Brexit and the election of Donald Trump both seem to originate from a deep dissatisfaction with globalization and what it seemingly represents. The growing discontent against the rapid growth of global goods, services, capital and labor began during the third wave of...

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Abstract:

At the end of 2019, the job market had already been under pressure from economic downturn, trade frictions and deleveraging, and the growth of market demand was slowing down. All of these issues have been compounded by the COVID-19 pandemic. Against this background, how will the new pandemic affect the labor market? Which are the key groups that will be affected? What should be done in the short and medium term to deal with the possible crisis and challenges? The answers to these questions are crucial to stabilizing employment and promoting growth, and are the focus of this chapter...

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Impact of the Novel Coronavirus Pandemic on Structural Unemployment and Employment Patterns, and the Corresponding Countermeasures | COVID-19's Economic Impact and Countermeasures in China

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Abstract: At the end of 2019, the job market had already been under pressure from economic downturn, trade frictions and deleveraging, and the growth of market demand was slowing down. All of these issues have been compounded by the COVID-19 pandemic. Against this background, how will the new pandemic affect the labor market?

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Over the last year, half a million people have lost jobs that will never return. Rishi Sunak has a chance to support them

Ahead of the spring budget on Wednesday, the OBR and Bank of England have predicted that unemployment could rise to between 7.5% and 7.7% in Q2 2021. This means that, by May around an extra 1.2 million people could have become unemployed since last March. This figure, however, assumes that the coronavirus job retention scheme (JRS, commonly known as furlough) will finish in April, as currently scheduled. The JRS has held back a surge of unemployment for almost a year now, and it looks likely the chancellor will, rightly, announce an extension.

For many, such an extension could be enough to save their job. The vaccine rollout is going well and optimism is high for a rapid recovery in economic activity over summer 2021, particularly since the government's announcement of its roadmap for easing public health restrictions. This could allow employers to start bringing their employees back into work.

However, there are a few significant reasons for caution. It is likely that it will take some months after restrictions are fully relaxed for businesses to bring all of their furloughed employees back to work. After three months of relaxed restrictions last summer, and with schemes like Eat Out to Help Out in place, the UK's furlough rate remained at 7.7%, equivalent to around 2.1 million jobs still requiring state support. As well as the lag between restrictions easing and unemployment falling, a critical cause for concern is the rise in ​'structural unemployment'. For these reasons, the UK will need some form of job support scheme to become permanent - something which has already been the case in countries like Germany for decades.

The spectre of long-term unemployment

Structural unemployment refers to those workers who are unemployed due to permanent shifts in how the economy works, often driven by processes like technological change. This is exacerbated when there is a mismatch between the skills that the unemployed cohort have, and the skills which industries that are hiring need. The OBR says that the number of structurally unemployed people has been rising ​"due to permanent behavioural changes prompted by the pandemic (such as more working from home, less business travel and the shift to online retail) that require labour to shift across occupations, sectors and regions, compounding the restructuring necessitated by Brexit".

We have detected a rise in structural unemployment over the last year in the data. Despite the JRS being in place, the UK's unemployment rate has steadily increased over the past 12 months, rising from 4.0% in the first quarter of 2020, to 5.1% in the fourth quarter, according to the ONS. Some portion of this increase will be people falling through the cracks of the furlough scheme, for example because of insecure employment contracts. But some portion will also reflect employers letting people go because they don't think the roles are viable long-term, even if they only need to cover national insurance and pension contributions through the JRS. This latter group makes up the structurally unemployed.

The OBR also expects this trend to continue. Their November forecast suggested the structural unemployment rate had already risen to 5.5% by Q2 2020, with the actual rate of unemployment below this as a result of the government's various emergency schemes. They expect the unemployment rate to overshoot the rate of structural employment this April, when the JRS is due to expire (Figure 1). We have calculated that the increase in structural unemployment translates into an additional 500,000 people structurally unemployed compared to pre-pandemic levels (January-March 2020), having lost work which is unlikely to return when public health restrictions are lifted, in sectors like retail, accommodation and food.

Although the economic recovery is likely to create new jobs in the longer term, two problems remain. The first is that the OBR expects structural unemployment to remain elevated for at least the next five years. Even if it does eventually fall back, this is still five years of economic misery and hardship that could otherwise be avoided through a different set of policy choices.

But just as serious is the second risk, that the OBR may be underestimating the extent of long-term changes in the economy after Covid, and therefore the length and scale of the UK's potential unemployment problem. This could be caused by things like: future waves of the pandemic, more disruptive endemic diseases than currently anticipated, and permanent changes in behaviour relating to things like remote working and online shopping. And on top of that, there are the structural shifts required to cut the UK's carbon emissions, in line with the government's targets.
Figure 1: Increased levels of structural unemployment will persist for at least the remainder of this parliamentary term
The term sometimes used for the elevated structural unemployment that the OBR is predicting is ​'economic scarring' - but this process isn't inevitable. Much rests on the design, resourcing, and responsiveness of the employment and income support programmes, education, and training provided by the state. All of these state provisions, however, are in poor condition in the UK, following a decade of short-sighted austerity. In fact, in the Learning and Work Institute's (LWI) latest survey in 2019, adult participation in learning hit its lowest level since the LWI began measuring in 1996. Part-time study in older adults, often for the purpose of retraining, has been particularly badly hit.

Retraining and upskilling for the future

The government is clearly aware there are issues, and in November announced an assortment of schemes to address the risk of structural unemployment. The Restart scheme provided £2.9bn of funding to support people who are unemployed for 12 months or more to find work. The Kickstart scheme subsidised employers to hire people on universal credit aged 16 to 24. The government also offered free courses to people without an A‑level, or equivalent level of qualification. But, like so many of the government's recent interventions, these schemes are littered with holes and fail to address the fundamental issues in the UK economy, with little on offer to many of the 500,000 or more workers who will be newly structurally unemployed by April this year. None of these schemes address the inadequacies of universal credit, which force adults of all ages to chase low-quality unsuitable work, over good-quality, skilled or vocational work. Nor do they fix the funding problems which have undermined later-life retraining through further and higher education.

The economic fallout of the pandemic also comes on the heels of the UK's net-zero goals, which will require every major industrial sector to retool and retrain their workforce to become low- or zero-carbon within the next two decades. The Grantham institute have suggested that around 10% of the UK workforce could require some upskilling or retraining for the zero carbon transition. This transition should be invigorated by a significant fiscal stimulus aimed at boosting our post-crisis recovery, and putting in place both the green and social infrastructure needed for a sustainable economy (for more details of how this should work, see our Winter Plan). To ensure these macroeconomic changes do not leave workers and communities behind, we should now formalise a permanent job support and upskilling scheme.

"There is a tremendous need for a new workforce with the right skills to meet the demands of the care sector and the emerging low-carbon economy."

There is a tremendous need for a new workforce with the right skills to meet the demands of the care sector and the emerging low-carbon economy. The new support scheme should offer a ​'right to retrain' for workers in sectors that are facing a decline in job numbers (like aviation), or in industries that need to retool to meet changing demands (like car manufacturing).

We have published a detailed analysis of how a ​' right to retrain ' scheme could support workers in the aviation sector, and the economic case for such a scheme. We found that moving a worker up one tier of education (eg, from no qualifications to GCSE-level qualifications, or from A‑level to degree level qualifications) can reduce the average length of time they spend unemployed by around four weeks. Once they obtain employment, workers will likely also enter a more productive job and we estimated that this should increase the government's tax take per employee by around 6 - 12%.

Sunak's choice for the budget

In the spring budget the chancellor needs to step up and present measures to prevent long-term economic and social scarring from the pandemic. A year ago, the chancellor promised he would do whatever it takes to support people's livelihoods. We believe there is now a clear case for the extension of the furlough scheme for as long as public health restrictions continue and the recovery remains subdued. As the economy slowly reopens, we need a long-term job support scheme to prevent both a further rise in unemployment but also to offer an opportunity for workers to retrain and reskill for the post-Covid economy.

Image: iStock

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Over the last year, half a million people have lost jobs that will never return. Rishi Sunak has a chance to support them

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Business investment in the UK:

Business investment fell by 0.5% in Quarter 3 (July to Sept) 2022.

The level of business investment in Quarter 3 2022 is 8.4% below where it was in Quarter 4 (Oct to Dec) 2019, the quarter before the coronavirus (COVID-19) pandemic; gross fixed capital formation (GFCF) levels are 0.8% above that same quarter.

Whole economy investment, which includes business and public sector investment, increased by 2.5% in Quarter 3 2022 and was 5.8% higher than in the same quarter a year ago.

Most assets contributed positively to growth in whole economy investment, with the largest contribution coming from dwellings with a growth of 4.2%. Transport equipment was the only negative contributor to whole economy investment growth.

Government investment grew by 7.6% in the latest quarter. Other buildings was the main driver behind the growth in government investment.

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COST OF LIVING INSIGHT
. Inflation in the uk rose to 7.9% last may
. Retail sales rose by 0.3% this year
. 4 in 10 adults in the UK are struggling to pay mortgages and rent this year

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International trade

Trade in goods and services across the UK's international borders, including total imports and exports, the types of goods and services traded and general trends in international trade.

Main points

The value of goods imports decreased by £0.7 billion (1.4%) in April 2023; after removing the effect of inflation, imports of goods fell by 0.4%.

The value of goods exports increased by £1.0 billion (3.4%) in April 2023; after removing the effect of inflation, exports of goods rose by a similar amount.

Both imports and exports of goods displayed an increase in trade with non-EU countries, while trade with EU countries fell in April 2023.

Despite a reduction in the gap in April 2023, imports from EU countries have been consistently greater than from non-EU countries since late 2022.

The total trade in goods and services deficit narrowed by £12.6 billion to £12.3 billion in the three months to April 2023 compared with the three months to January 2023, driven by a larger fall in imports than exports.

The trade in goods deficit narrowed by £10.7 billion to £52.5 billion in the three months to April 2023, while the trade in services surplus widened by £1.9 billion to £40.3 billion.

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Massive rises on housing
More than 4 in every 10 (43%) adults in Great Britain have reported that it was very or somewhat difficult to afford their rent or mortgage payments.

This was an increase from a quarter (25%) in June 2022.
My self finding hard to afford to pay the rent

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Expenditure on research and development (R&D) performed by UK businesses (in current prices) was £46.9 billion in 2021, an increase of £2.9 billion since 2020 and £5.9 billion since 2018, which is the first data period produced using improved methodology.

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The UK employment rate was estimated at 76.0% in February to April 2023, 0.2 percentage points higher than November 2022 to January 2023

The unemployment rate for February to April 2023 increased by 0.1 percentage points on the quarter to 3.8%. The increase in unemployment was driven by people unemployed for up to 12 months.

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TASK: Visit the UK Office for National Statistics website and familiarise with the homepage and with the main macroeconomic indicators (Employment and Unemployment rates, Inflation rate, GDP).

https://www.ons.gov.uk/

Give a small description of what you find on the Class Padlet

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Group TASK:
Instruction

1.Find a newspaper article on the UK economy that interests your group.

Give the title and date

2. Summarise the main points of the article in your own words. (3-5 bullet points or sentences)

3. State the purpose of the article: (entertain, inform, persuade,  examine/explore an issue, report)

4.Quote 3 words from the article that are unfamiliar to you.

Look up and provide their definitions from a dictionary or www.dictionary.com

5. Add your findings to our class padlet

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The Royal Mail Group has been accused of “a serious breach of competition law” after admitting colluding with a rival to not attempt to poach each other’s customers.

The UK delivery giant has admitted “being part of an illegal anti-competitive agreement” with Salegroup, a reseller of its business parcel delivery services, for more than four years.

Last year, Royal Mail Group informed the competition watchdog, the Competition and Markets Authority (CMA), that its Parcelforce division had an agreement with the smaller firm which meant they would not offer services to each other’s customers.

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https://publications.parliament.uk/pa/cm201415/cmselect/cmbis/769/769.pdf

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12.6 Consumers are now generally protected by the price caps, indexed in line with
CPI, that now apply to 2nd class standard and large letters for a period of seven
years through to the end of Royal Mail’s designation as the USP.

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Collusion is a non-competitive, secret and sometimes illegal agreement between ribals which attempts to disrupt the market's equilibrium.

# data[].attributes.body
https://inews.co.uk/news/business/royal-mail-collusion-parcel-delivery-rival-competition-law-breach-340865

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Royal Mail admits to colluding with a rival

# data[].attributes.attachment_link.description
Ofcom said it found, after Royal Mail informed the regulator of the incident, that the agreement between the businesses broke the law by restricting competition

# data[].attributes.body
The recent COVID‐19 crisis fundamentally changed the way car manufacturers operate. Although the automotive industry experienced disruption in CASE (Connectivity, Autonomy, Sharing, Electrification) over recent years, the implications of today’s COVID‐19 crisis for incumbent car manufacturers are unprecedented (Choi, 2020; Genzlinger, Zejnilovic, & Bustinza, 2020; Ivanov, 2020; Venter, Aunan, Chowdhury, & Lelieveld, 2020; Wang & Wells, 2020). The unprecedented nature of this industry transformation is reflected in new ways of collaborating (in many business areas remote), change in risk tolerance (higher risk‐taking by managers), increased time spent on strategic as opposed to operational challenges by top‐management‐teams (TMTs), and increased use of agile ways of working throughout the organisation as a strategy and implementation tool (Ivanov, 2020; Ivanov & Dolgui, 2020; Kano & Oh, 2020; Lawton, Dorobantu, Rajwani, & Sun, 2020; Shepherd, 2020; Wang & Wells, 2020).