# data[].attributes.body
Price controls are deemed to be the legally imposed maximum or minimum prices applied and set to specific goods.
The implementation of these controls acts as a direct economic intercession to control the volume of quantity circulated within the
economy, as well as the price charged to consumers by businesses.

# data[].attributes.headline
independent study:  Article from The Economics Book -  big ideas Simply explained ( key thinker lionel Robbins) p:171

# data[].attributes.subject
independent study:  Article from The Economics Book -  big ideas Simply explained ( key thinker lionel Robbins) p:171

# data[].attributes.body
lionel robbins provoked controversy by publishing his essay on the nature and siginficance of economic science.

This contained a new defentition of economics

defined it as the science of human actions in the face of limited resources with multiple users

based on the fact that human needs are infinate, yet there are only a finite amount of resources.

as one need is fulfilled, another one takes its place

are only limited resources (land, labour,entrepreneurship and captital) available to fulfill these desires.

SCARCITY means that every desire can never be satisfied.

focuses on the fact that scarcity forces an economic choice- such as whether to use a field to feed cattle or grow wheat.

# data[].attributes.headline
independt study video: How to eat the frog by brian tracy ( time management skills 

# data[].attributes.subject
independt study video: How to eat the frog by brian tracy ( time management skills 

# data[].attributes.body
Takeaways:

start with the biggest, hardest and most important task first

take action immediately

develop a postitive addiction

practice

# data[].attributes.attachment_link.title
"Eat That Frog" Top Takeaways | Brian Tracy

# data[].attributes.headline
Drapers article 23th september 2024.                    Fixing fashion retail’s broken balance sheet

# data[].attributes.subject
Drapers article 23th september 2024.                    Fixing fashion retail’s broken balance sheet

# data[].attributes.attachment_link.title
Fixing fashion retail’s broken balance sheet

# data[].attributes.attachment_link.description
From Asos’s Topshop sale to Boohoo Group’s US warehouse closure, Drapers explores what measures retailers are taking to shore up their balance sheet and why.

# data[].attributes.headline
Adam smith - free market (The father of economics ) 1723-1790 

# data[].attributes.subject
Adam smith - free market (The father of economics ) 1723-1790 

# data[].attributes.body
The theory of moral sentiments:

smith proposed the idea of the invisible hand (The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium) the tendency of free markets to regulate themselves by means of competition, supply and demand,
and self-interest.

In his view humans were social creatures who act with a sense of “fair play” in competition and derive pleasure from seeing the wellbeing of others

Smith believed that governments should not interfere with commerce, he gave this the term, Laissez-Faire (leave alone)

Smith saw society as perfectly functional and the entire economy as a successful system, an imaginary machine that worked

# data[].attributes.headline
John Maynard keynes- keynesism (political theory ) 

# data[].attributes.subject
John Maynard keynes- keynesism (political theory ) 

# data[].attributes.body
keynes claimed the answer for involuntary unemployment was not to just wait for the economy to return to normal but instead for governments to spend more money in the economy so that the overall
demand for products would rise.

This would encourage firms to take on more workers, and as prices rose, real wages would fall, returning the economy back into full employment.

As long as the government was willing to inject demand into the economy, the whole system would start to recover.

Keynes believed it is the responsibility of the state to create demand until more widespread demand returned to the market.

Keynes believed that government intervention would have a positive impact by:

Creation of jobs saves money spent on unemployment benefits

Increase in workers adds money being spent in the economy

Increase in workers adds money being received in tax
Work done in public services would increase potential of other businesses in the economy

# data[].attributes.attachment_link.readable_text
What Is Keynesian Economics?

Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.

The central belief of Keynesian economics is that government intervention can stabilize the economy. Keynes' theory was the first to sharply separate the study of economic behavior and individual incentives from the study of broad aggregate variables and constructs.

Based on his theory, Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the Depression. Subsequently, Keynesian economics was used to refer to the concept that optimal economic performance could be achieved-and economic slumps could be prevented-by influencing aggregate demand through economic intervention by the government. Keynesian economists believe that such intervention can achieve full employment and price stability.

Key Takeaways

Understanding Keynesian Economics

Keynesian economics represented a new way of looking at spending, output, and inflation. Previously, what Keynes dubbed classical economic thinking held that cyclical swings in employment and economic output create profit opportunities that individuals and entrepreneurs would have an incentive to pursue, and in so doing, they correct the imbalances in the economy.

According to Keynes' construction of this so-called classical theory, if aggregate demand in the economy fell, the resulting weakness in production and jobs would precipitate a decline in prices and wages. A lower level of inflation and wages would induce employers to make capital investments and employ more people, stimulating employment and restoring economic growth. Keynes believed, however, that the depth and persistence of the Great Depression severely tested this hypothesis.

In his book The General Theory of Employment, Interest and Money and other works, Keynes argued against his construction of classical theory, asserting that, during recessions, business pessimism and certain characteristics of market economies would exacerbate economic weakness and cause aggregate demand to plunge further.

For example, Keynesian economics disputes the notion held by some economists that lower wages can restore full employment because labor demand curves slope downward like any other normal demand curve.

Similarly, poor business conditions may cause companies to reduce capital investment rather than take advantage of lower prices to invest in new plants and equipment. This also would have the effect of reducing overall expenditures and employment.

Keynesian Economics and the Great Depression

Keynesian economics is sometimes referred to as "depression economics," as Keynes' General Theory was written during a time of deep depression-not only in his native United Kingdom, but worldwide. The famous 1936 book was informed by Keynes' understanding of events arising during the Great Depression, which Keynes believed could not be explained by classical economic theory as he portrayed it in his book.

Other economists had argued that, in the wake of any widespread downturn in the economy, businesses and investors taking advantage of lower input prices in pursuit of their own self-interest would return output and prices to a state of equilibrium, unless otherwise prevented from doing so. Keynes believed that the Great Depression seemed to counter this theory.

Output was low, and unemployment remained high during this time. The Great Depression inspired Keynes to think differently about the nature of the economy. From these theories, he established real-world applications that could have implications for a society in economic crisis.

Keynes rejected the idea that the economy would return to a natural state of equilibrium. Instead, he argued that, once an economic downturn sets in, for whatever reason, the fear and gloom that it engenders among businesses and investors will tend to become self-fulfilling and can lead to a sustained period of depressed economic activity and unemployment.

In response to this, Keynes advocated a countercyclical fiscal policy in which, during periods of economic woe, the government should undertake deficit spending to make up for the decline in investment and boost consumer spending to stabilize aggregate demand.

Keynes was highly critical of the British government at the time. The government greatly increased welfare spending and raised taxes to balance the national books. Keynes said that this would not encourage people to spend their money, thereby leaving the economy unstimulated and unable to recover and return to a successful state.

Keynes also criticized the idea of excessive saving, unless it was for a specific purpose such as retirement or education. He saw it as dangerous for the economy because the more money sitting stagnant, the less money is in the economy stimulating growth. This was another of Keynes' theories geared toward preventing deep economic depressions.

Many economists have criticized Keynes' approach. They argue that businesses responding to economic incentives will tend to return the economy to a state of equilibrium unless the government prevents them from doing so by interfering with prices and wages, making it appear as though the market is self-regulating.

On the other hand, Keynes, who was writing while the world was mired in a period of deep economic depression, was not as optimistic about the natural equilibrium of the market. He believed that the government was in a better position than market forces when it came to creating a robust economy.

Keynesian Economics and Fiscal Policy

The multiplier effect, developed by Keynes' student Richard Kahn, is one of the chief components of Keynesian countercyclical fiscal policy. According to Keynes' theory of fiscal stimulus, an injection of government spending eventually leads to added business activity and even more spending. This theory proposes that spending boosts aggregate output and generates more income. If workers are willing to spend their extra income, the resulting growth in gross domestic product (GDP) could be even greater than the initial stimulus amount.

The magnitude of the Keynesian multiplier is directly related to the marginal propensity to consume. Its concept is simple. Spending from one consumer becomes income for a business that then spends on equipment, worker wages, energy, materials, purchased services, taxes, and investor returns. That worker's income can then be spent, and the cycle continues. Keynes and his followers believed that individuals should save less and spend more, raising their marginal propensity to consume to effect full employment and economic growth.

In this theory, one dollar spent in fiscal stimulus eventually creates more than one dollar in growth. This appeared to be a coup for government economists, who could provide justification for politically popular spending projects on a national scale.

This theory was the dominant paradigm in academic economics for decades. Eventually, other economists, such as Milton Friedman and Murray Rothbard, showed that the Keynesian model misrepresented the relationship between savings, investment, and economic growth. Many economists still rely on multiplier-generated models, although most acknowledge that fiscal stimulus is far less effective than the original multiplier model suggests.

The fiscal multiplier commonly associated with the Keynesian theory is one of two broad multipliers in economics. The other multiplier is known as the money multiplier. This multiplier refers to the money creation process that results from a system of fractional reserve banking. The money multiplier is less controversial than its Keynesian fiscal counterpart.

Keynesian Economics and Monetary Policy

Keynesian economics focus on demand-side solutions to recessionary periods. The intervention of government in economic processes is an important part of the Keynesian arsenal for battling unemployment, underemployment, and low economic demand. The emphasis on direct government intervention in the economy often places Keynesian theorists at odds with those who argue for limited government involvement in the markets.

Wages and employment, Keynesians argue, are slower to respond to the needs of the market and require government intervention to stay on track. Furthermore, they argue, prices do not react quickly and change only gradually when monetary policy interventions are made, giving rise to a branch of Keynesian economics known as monetarism.

If prices are slow to change, this makes it possible to use money supply as a tool and change interest rates to encourage borrowing and lending. Lowering interest rates is one way that governments can meaningfully intervene in economic systems, thereby encouraging consumption and investment spending. Short-term demand increases initiated by interest rate cuts reinvigorate the economic system and restore employment and demand for services. The new economic activity then feeds continued growth and employment.

Without intervention, Keynesian theorists believe, this cycle is disrupted, and market growth becomes more unstable and prone to excessive fluctuation. Keeping interest rates low is an attempt to stimulate the economic cycle by encouraging businesses and individuals to borrow more money. They then spend the money that they borrow. This new spending stimulates the economy. Lowering interest rates, however, does not always lead directly to economic improvement.

Monetarist economists focus on managing the money supply and lower interest rates as a solution to economic woes, but they generally try to avoid the zero-bound problem. As interest rates approach zero, stimulating the economy by lowering interest rates becomes less effective because it reduces the incentive to invest, rather than simply hold money in cash or close substitutes like short-term Treasurys. Interest rate manipulation may no longer be enough to generate new economic activity if it can't spur investment, and the attempt at generating economic recovery may stall completely. This is a type of liquidity trap.

When lowering interest rates fails to deliver results, Keynesian economists argue that other strategies must be employed, primarily fiscal policy. Other interventionist policies include direct control of the labor supply, changing tax rates to increase or decrease the money supply indirectly, changing monetary policy, or placing controls on the supply of goods and services until employment and demand are restored.

Keynesian Economics and the 2007-08 Financial Crisis

In response to the Great Recession and financial crisis of 2007-2008, the Congress and Executive branch undertook several measures that drew from Keynesian economic theory. The federal government bailed out debt-ridden companies in several industries including banks, insurers, and automakers. It also took into conservatorship Fannie Mae and Freddie Mac, the two major market makers and guarantors of mortgages and home loans.

In 2009, President Obama signed the American Recovery and Reinvestment Act, an $831-billion government stimulus package designed to save existing jobs and create new ones. It included tax cuts/credits and unemployment benefits for families; it also earmarked expenditures for healthcare, infrastructure, and education.

These stimulus measures and federal interventions helped America's economy recover, preventing the Great Recession from becoming another full-blown depression.

COVID-19 Stimulus

Who Was John Maynard Keynes?

John Maynard Keynes (1883-1946) was a British economist, best known as the founder of Keynesian economics and the father of modern macroeconomics. Keynes studied at one of the most elite schools in England, the King's College at Cambridge University, earning an undergraduate degree in mathematics from the latter in 1905. He excelled at math but received almost no formal training in economics.

How Does Keynesian Economics Differ From Classical Economics?

According to Keynes, classical economics held that swings in employment and economic output create profit opportunities that individuals and entrepreneurs have an incentive to pursue, eventually correcting imbalances in the economy. In contrast, Keynes argued that, during recessions, business pessimism and certain characteristics of market economies would exacerbate economic weakness and cause aggregate demand to plunge further. Keynesian economics holds that, during periods of economic woe, governments should undertake deficit spending to make up for the decline in investment and boost consumer spending to stabilize aggregate demand.

What Is Monetarism?

Monetarism is a macroeconomic theory stating that governments can foster economic stability by targeting the growth rate of the money supply. Closely associated with economist Milton Friedman, monetarism is a branch of Keynesian economics that emphasizes the use of monetary policy over fiscal policy to manage aggregate demand, which contrasts with the theories of most Keynesian economists.

The Bottom Line

John Maynard Keynes and Keynesian economics were revolutionary in the 1930s and did much to shape post-World War II economies in the mid-20th century. His theories came under attack in the 1970s, saw a resurgence in the 2000s, and are still debated today. Keynesian economics, recognizes the role of government finance in sparking aggregate demand. Federal spending and tax cuts leave more money in peoples' pockets, which can stimulate demand and investment. Unlike free market economists, Keynesian economics welcomes limited government intervention and stimulus during times of recession.

# data[].attributes.attachment_link.title
Keynesian Economics Theory: Definition and How It's Used

# data[].attributes.attachment_link.description
Keynesian economics comprise a theory of total spending in the economy and its effects on output and inflation, as developed by John Maynard Keynes.

# data[].attributes.headline
Friedrich von wieser- opportunity cost page 133

# data[].attributes.subject
Friedrich von wieser- opportunity cost page 133

# data[].attributes.body
by 1914 austrian economist friedrich von wieser was convinced that the value of something was determined by what had to be given up in order to get in.

argued scarcity would create the need for choices - called the concept opportunity cost.

True cost: means the cost of going to the movies, for example is not really the cost of admission to the cinema but also the enjoyment you give up from your next best choice of activity.

opportunity cost means more

weiser thought that ultimately the privce of a product was determined by how much it was desired and this is measured by what people were willing to give up to get it , rather than how much it costs to produce.

# data[].attributes.body
Climate change refers to a large-scale, long-term shift in the planet's weather patterns and average temperatures.

Climate change is the long-term shift in average weather patterns across the world.

Since the mid-1800s, humans have contributed to the release of carbon dioxide and other greenhouse gases into the air.This causes global temperatures to rise, resulting in long-term changes to the climate.

https://www.metoffice.gov.uk/weather/climate-change/what-is-
climate-change

# data[].attributes.body
what is demand?

Demand is an economic principle referring to a consumer’s desire and willingness to pay a specific price for a specific good or service.

# data[].attributes.body
The consumer is the person who pays something to consume goods and services produced.

As such, consumers play a vital role in the economic system at a local, national, and global level.

Without consumer demand, producers would lack one of the key motivations to produce i.e. to provide for consumers.

This is why understanding consumer needs and wants is so critical to a successful business – the ability to create real VALUE for the consumer.

# data[].attributes.body
A substitute is a product or service that can be easily replaced with another by consumers.

In economics, products often have substitutes and the demand for one product can increase or decrease due to the price of the other product going up or down.

What is the substitute effect?
The substitution effect is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives.

Fast Fashion brands are probably the best current example of the substitution effect when consumers shifted to a cheaper alternative.
The demand for the traditional brands decreased and the demand for the Fast Fashion brands increased.

Fashion retail substitutes
The existence of substitutes in fashion retail can and does affect sales and performance and potentially lower profitability.
This is because substitutes directly influence the prices of the products and the demand for the products from the customers as well.
In the retail industry, the threat from the substitutes is very high.

# data[].attributes.body
In economics, a complementary good is a good whose appeal increases with the popularity of its complement.

When two goods are complements, they experience joint demand - the demand of one good is linked to the demand for another good.

Good recent fashion retail example is during Covid19 there was a shift to wellbeing and health which saw the emergence and growth of many men’s complimentary online beauty and grooming product brands.

Examples of compliment products
While substitute goods can replace each other because they serve the same functions.
Complementary products, however, are items that add value to another complimentary product and often cannot be used separately such as:
Coffee machine - pods
Eyeshadow — brush
Toothpaste — toothbrush
Computer hardware - software
Ink jet printer - ink cartridges

# data[].attributes.body
LAW OF DEMAND
What is the relationship between price and quantity demanded?

There is an inverse relationship between price and quantity demanded.

A change in the price moves up or down the demand curve.

• Price goes down and quantity demanded goes up
• Price goes up and quantity demanded goes down

# data[].attributes.attachment_link.title
Demand and Supply Explained- Macro Topic 1.4 (Micro Topic 2.1)

# data[].attributes.body
price goes down and quantity goes up

price goes up and quantity goes down

# data[].attributes.body
What are the three reasons for the downward demand curve?
1 Substitution effect
2 Income effect
3 Law of diminishing marginal utility

# data[].attributes.body
Substitution effect
The substitution effect is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives.

If a brand raises its price, some consumers will select a cheaper alternative to buy and vice versa.

Fast Fashion brands are probably the best current example of the substitution effect when consumers shifted to a cheaper alternative.

The demand for the traditional brands decreased and the demand for the Fast Fashion brands increased.

# data[].attributes.body
Changes in price affect the purchasing power of consumers income.

If products become cheaper then the consumer can and will buy more, just because they can and vice versa.

Good example of income effect is the growth and expansion of value stores and supermarkets such as Poundland, B&M, Aldi and Lidl.

Consumers who shop in value supermarkets will be willing to buy more/bigger quantities as the costs are less than in traditional supermarkets.

Examples: buy one get one free

# data[].attributes.body
The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal (additional) utility (satisfaction) derived from each additional unit declines.

The utility is an economic term used to represent satisfaction or happiness.

The fashion industry by nature supports the Law of diminishing marginal utility as it drives fashion trends and the needs and wants of consumers to consume and buy new products, but once the consumer does not want the

product anymore suppliers and retailers will need to reduce in price and cut margin to try and sell the excess stock.

# data[].attributes.headline
What will cause a shift in the demand curve?

# data[].attributes.subject
What will cause a shift in the demand curve?

# data[].attributes.body
Increase in demand will cause a shift to the right

Decrease in demand will cause a shift to the left

# data[].attributes.body
1. Tastes and preferences

A preference means that the consumer prefers one thing over another and refers to a persons personal choices in the things that they like.
Good example:
Increase in the demand for comfort wear and leisure during Covid19 produced a shift in the demand and growth of businesses selling these types of products.

2. Number of consumers

As more or fewer consumers enter the market this has a direct effect on the amount of a product that consumers are willing and able to buy.
Good example:
Covid19 lockdown saw increase in number of online consumers as physical stores were closed, since the end of the pandemic there has been a shift back to physical stores (experiential retailing).

3. Price of related goods

The price of related goods is one of the factors that can affect demand. The Related goods are classified as either substitutes or complements.

An increase in the price of a good will increase demand for its substitute, while a decrease in the price of a good will decrease demand for its substitute.
Good example:
Recent shift to people shopping at value supermarkets and retailers focusing on comparative pricing (price related goods) – majority of supermarkets now
using comparative pricing in marketing campaigns to highlight differences in the prices of related goods.

4. Income

As consumers’ incomes increase, people have more money to spend. This means that demand for many goods and services will increase as consumers look to spend their extra money.

If consumers’ incomes fall, people will have less money to spend.

They will buy fewer goods and services, as they will make do with what they already have.
Good example:
Decline of luxury goods/sales during the current cost-of-living crisis, consumers choosing to focus on inferior goods (needs) and less on normal goods (wants)

5. Expectation

a buyer expects the price of a good to go down in the future, they hold off buying it today, so the demand for that good today decreases.

On the other hand, if a buyer expects the price to go up in the future, the demand for the good today increases
Good example:
Dynamics and consumer behaviour around Black Friday events and sales performance of products either side of the event Current situation in Israel and the Middle east – economic instability and uncertainty

# data[].attributes.body
Examples of FOUR impact areas:
• Environmental impact
• Financial risks
• Country-specific impacts
• De-carbonisation opportuni

# data[].attributes.body
The fashion industry is responsible for 8-10% of global emissions, according to the UN.
This is more than the combined emissions from aviation and
shipping.
In 2018, the sector contributed approximately 2.1 billion metric
tons of greenhouse gas (GHG) emissions, accounting for about 4% of the global total.

Greenhouse Gas Emissions:
The fashion industry is responsible for about 4% of global
greenhouse gas emissions, which is equivalent to the annual
emissions of France, Germany, and the UK combined. This
includes emissions from the entire value chain, from production to retail.

Resource Consumption:
Fashion production consumes a large amount of natural
resources. For example, it uses more water than any other
industry except agriculture. The production of textiles and
garments also involves significant energy use, contributing to carbon emissions.

Waste Generation:
The industry generates a substantial amount of waste. Up to 85% of textiles go to landfills each year, and the equivalent of one garbage truck full of clothes is burned or dumped in a landfill every second.

Microplastics Pollution:
Washing synthetic fabrics like polyester releases microplastics into the oceans. These microplastics contribute to ocean pollution and harm marine life.

Fast Fashion:
The rise of fast fashion has exacerbated these issues. Fast
fashion brands produce large quantities of low-cost clothing,
leading to increased consumption and waste. Consumers are
buying more clothes but keeping them for shorter periods.

To mitigate these environmental impacts, the fashion industry needs to adopt more sustainable practices, such as improving energy efficiency, using renewable energy, and promoting circular fashion models that emphasise recycling and reusing materials.

# data[].attributes.body
Extreme weather events due to climate change can disrupt
supply chains, affecting production and distribution.

Rising temperatures and changing weather patterns impact
cotton and other raw materials, leading to price fluctuations.

Brands may face increased costs related to energy, water, and waste management.

Supply Chain Disruptions:
Extreme weather events such as floods, hurricanes, and droughts can disrupt the supply chain. Key apparel hubs in countries like Bangladesh, Vietnam, and India are particularly vulnerable. These disruptions can lead to delays, increased costs, and loss of revenue.

Increased Operational Costs:
As the industry moves towards more sustainable practices, there will be increased costs associated with transitioning to renewable energy, improving energy efficiency, and adopting sustainable materials. While these changes are necessary, they can initially strain financial resources.

Regulatory Risks:
Governments around the world are implementing stricter
environmental regulations. Non-compliance can result in fines, increased taxes, and other penalties. Companies may also face higher costs to meet these new standards.

Market Risks:
Consumer preferences are shifting towards more sustainable and ethical products. Brands that fail to adapt to these changes risk losing market share. Additionally, investors are increasingly considering environmental, social, and governance (ESG) factors,which can affect a company’s stock price and access to capital.

Physical Risks:
Climate change can directly impact physical assets. For example, rising sea levels and extreme weather can damage factories, warehouses, and retail stores. This can lead to significant repair and replacement costs.

Reputation Risks:
Companies that are perceived as not taking sufficient action on climate change may face reputational damage. This can lead to a loss of customer loyalty and negative impacts on sales.

# data[].attributes.body
Countries that produce a significant share of global apparel
exports, such as Bangladesh, Cambodia, Pakistan, and Vietnam,are vulnerable.

By 2030, these countries could lose $65 billion in export earnings (a 22% decline) and nearly 1 million jobs due to slower growth caused by climate-related challenges.

Bangladesh:
As one of the largest garment producers, Bangladesh faces
significant risks from climate change. Extreme heat and flooding threaten factory operations and worker health. By 2030, the country could lose $65 billion in export earnings and nearly 1 million jobs due to slower growth.

Cambodia:
Similar to Bangladesh, Cambodia’s apparel industry is vulnerable to extreme weather events. Flooding and heatwaves can disrupt production and supply chains, leading to financial losses and job cuts.

Pakistan:
Pakistan’s textile sector, a major part of its economy, is also at risk. Climate change can cause water shortages, affecting cotton production, which is crucial for the textile industry. This can lead to increased costs and reduced output.

Vietnam:
Vietnam, another key player in the global apparel market, faces threats from rising sea levels and extreme weather. These conditions can damage infrastructure and disrupt logistics, impacting the overall efficiency and profitability of the industry.

India:
India’s fashion industry is affected by both extreme heat and
water scarcity. These conditions can hinder cotton production and increase operational costs for textile factories. Additionally, the industry must adapt to changing consumer preferences towards sustainable fashion.

China:
As the largest textile producer, China faces significant
environmental challenges. The industry contributes to high levels of pollution and greenhouse gas emissions. Climate policies and regulations are pushing the industry towards more sustainable practices, which can initially increase costs.

# data[].attributes.headline
How does raising interest rates bring down inflation?

# data[].attributes.subject
How does raising interest rates bring down inflation?

# data[].attributes.body
Inflation is the rate at which prices have increased over the past year.

means the money in our pockets is becoming worth less and less.

raising interest rates - effective way to bring down inflation

The higher the interest rate the more it costs to borrow money

slows down the economy by curbing demand

businesses are less likely to invest in new equipment or staff

fewer consumers will take out car loans or mortgages, for example the prices of goods are linked to the amount of demand for them

as demand drops, so does upward pressure on prices

costs of businesses loan repayments goes up

while lower deman overall menas they have fewer customers

cause layoff staff or go out of business

more people become unemployed, income fall

soft landing: interests rate rises do just enough to curb inflation

# data[].attributes.attachment_link.title
How Does Raising Interest Rates Bring Down Inflation?

# data[].attributes.attachment_link.description
The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Incorporated as a not-for-profit foundation in 1971, and headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan or national interests.

# data[].attributes.headline
Supply and demand (pages 110-113 ) Alfred marshall 

# data[].attributes.subject
Supply and demand (pages 110-113 ) Alfred marshall 

# data[].attributes.body
The interplay between the amount of a product available on the market and the eagerness of consumers to buy thet producst creates the foundation of markets.

Alfred marshall:

Saw that supply and demand work in tandem to generate the market price.

The law of supply:

The amount of producst a firm chooses to produce is determined by the price at which it can sell them.

side costs e.g. the labour involved, time taken to produce the goods and transportation determines the end value.

# data[].attributes.body
Guardian 15/10
Why would any business locate themselves in a country that has cut itself off from the world’s largest trading bloc when it could just do business in the world’s largest trading bloc?

That is the question investors are no doubt asking themselves at Britain’s big investment summit this week.

As the International Investment Summit begins, Brexit is the
elephant standing across our trade flows.

Brexit has not been a “big bang” of damage but a slow drain of talent, investment and, ultimately, growth.

Now the pandemic has receded, that is painfully clear.
Aston University research shows a 27% drop in UK exports and a 32% decline in imports from the EU since 2021, which
translates to an annual loss of £183bn.

# data[].attributes.attachment_link.readable_text
Why would any business locate themselves in a country that has cut itself off from the world's largest trading bloc when it could just do business the world's largest trading bloc? That is the question investors are no doubt asking themselves at Britain's big investment summit this week. As the International Investment Summit begins, Brexit is the elephant standing across our trade flows.

Brexit has not been a "big bang" of damage but a slow drain of talent, investment and, ultimately, growth. Now the pandemic has receded, that is painfully clear. Aston University research shows a 27% drop in UK exports and a 32% decline in imports from the EU since 2021, which translates to an annual loss of £183bn.

On the ground, complaints are legion. The Brexit border tax means you can't import agricultural products without facing extortionate charges and delays. VAT rules for 27 different countries create paperwork headaches of epic proportions. Our creative industries are haemorrhaging touring contracts because of visa and work restrictions. The last government had to offer subsidies to the car and steel sectors to retain them - our chemical and pharmaceutical companies understandably want to be next. Higher education - another great British export - has not recovered from being kicked out of Horizon and Erasmus, or the lost international students.

Yet as much of a car crash as this is, this is not an argument to rejoin now - however much some believe this is possible. Even if a referendum on rejoining could be won (and there's plenty of indication it could, though little appetite to revisit the divisions of last time), returning is not our decision to make alone. We spent years walking out, and it would take years to crawl back. Meanwhile, businesses have critical decisions to make in the next 18 months that they put on hold after the madness of Liz Truss's mini budget. Asking them to wait another decade for certainty of what our future relationship with Europe will be - with the risk that it may not improve at all - is a non-starter.

This is an argument for honesty from those who still claim Brexit offers benefits, and an argument for focus from those who wear blue berets with gold stars. Already we have shown that we can build strong relationships with our European neighbours to support our defence and energy security. The coming days will showcase the best of British production, talent and innovation. We need to show the best of British politics too. We need to set out the details of our post-Brexit salvage operation that will make people want to invest in the UK because of its approach to Europe, rather than in spite of it.

Businesses say they would invest more if the UK were to align its regulations with the EU. To do that, the government should accept amendments tabled by crossbenchers this week to the product regulations and metrology bill. These amendments give businesses certainty that we won't ask them to choose between making products to UK standards or European ones. Any decision to differ would be subject to parliamentary scrutiny and approval - giving confidence that we want to reduce the red tape created by leaving the EU, rather than add to it.

That's just the beginning. A deal to establish rules for food safety, and animal and plant health could help reduce the madness of what is happening at our ports. Rejoining the pan-Euro-Mediterranean convention would address further complexities that come with trading across the continent. Contrary to the claims of Brexiters, a youth mobility deal does not amount to freedom of movement because it sets explicit limits on travel. Rather than rejecting the idea, we should not only negotiate such a deal, but use it as the basis for wider visa reforms to ensure everyone who has a job, apprenticeship, place to study or business to run, can do so without risking a criminal record for entering a country. Europe has shown itself remarkably willing to be flexible if it is in our mutual interests. Looking ahead to the review of the trade and cooperation agreement, we should be clear that Britain wants these gains for all our workers and businesses, and we are willing to talk about how to get there.

The Brexiter fantasy of becoming Europe's answer to Singapore disintegrated as soon as it came into contact with the modern supply chains of the 21st century. The barriers to trade, paperwork and pain that leaving the EU has created will make the job of all those at the investment summit an uphill struggle. With growth in short supply, we can't afford to ignore those on our doorstep, or assume that deals with nations thousands of miles away will compensate.

You can't make Brexit work, but you can fix some of the problems it has created. For "global Britain" to succeed, it has to be a good neighbour as well as a seasoned traveller.

# data[].attributes.attachment_link.title
There's an elephant in the room at Keir Starmer's big investment summit: Brexit | Stella Creasy

# data[].attributes.attachment_link.description
We need a salvage operation to fix the problems this created. Otherwise, how else will we attract global investment, asks Labour MP Stella Creasy

# data[].attributes.headline
Lindsay Mckerchar- head of sustainability at URBN Observation 

# data[].attributes.subject
Lindsay Mckerchar- head of sustainability at URBN Observation 

# data[].attributes.body
environment and climate change:

hurricane slashes georgia cotton crop by 20% ( price goes up scarcity)

social montoring risk- are the workers at risk,

Flood risk: loss of life, stock loss, production and transport delays, lack of investement in flood prevention could make BD non-viable 10-15 years

# data[].attributes.headline
Identify additional examples of fashion retail brands that could be used for the five shifters of demand:

# data[].attributes.subject
Identify additional examples of fashion retail brands that could be used for the five shifters of demand:

# data[].attributes.body
• Taste and preferences

patagonia

• Number of consumers

Asos - during lockdown boosted there revenue due to people buying online as they couldn't leave there houses.

• Price related goods

-

• Income

Gucci

louis vuitton

• Expectations

oil (Middle East)

# data[].attributes.body
Producers:

A producer is someone who creates and supplies goods or services.

Producers combine labor and capital—called factor inputs or factors of production—to create—that is, to output—something else.

# data[].attributes.body
supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to
consumers.

Supply can relate to the amount available at a specific price or the amount available across a range of prices.

# data[].attributes.body
wants to supply loads at high costs.

There is a direct relationship between price and quantity being supplied to the market

• When price goes up then quantity of supply goes up
• When price goes down then quantity of supply goes down

The law of supply says that a higher price will lead producers to supply a bigger quantity to the market.

Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will want to produce more of it.

# data[].attributes.attachment_link.title
Demand and Supply Explained Part 2 - Macro Topic 1.5 (Micro Topic 2.2)

# data[].attributes.body
The market supply curve is upward sloping as when the price increases so does the quantity produced.

# data[].attributes.body
1.Price of resources

2. Number of producers
3. Technology
4. Taxes and subsidies
5. Expectations

# data[].attributes.body
1)price of resources

An increase in the price of resources causes a shift in supply to the left.

A decrease in the price of resources causes a shift in supply to the right.

One of the impacts of the Cost-of-living crisis was the
increase in inflation and subsequent increase in the general costs of resources which resulted in most producers wanting to supply less products or services to the market.

2) number of producers

The more producers that are supplying a product or service, the higher the quantity of that product or service supplied there is in the market.

If, for any reason, more producers enter the market to supply a product, the market supply curve will shift rightward with the quantity supplied increasing at each price level.

However, often an increase in the number of producers means increased competition, and eventually less-efficient producers will be driven out of the market, causing a supply to decrease and shift back to the left.

# data[].attributes.body
3) Technology

Technological changes can influence the supply of a commodity to the market.

Advanced and improved technology can reduce the cost of production, which will raise the profit margin for the producer, which will encourage the producers to increase the supply and shift to the right.

4) taxes and subsides

Taxes are an additional cost of production that will shifts supply to the left, leading a firm to want to produce a lower quantity at every given price.

Government subsidies will reduce the cost of production and therefore will increase supply at every given price, shifting the supply to the right.

The EU and US propose introducing a range of different subsides (good compliance) and taxes (poor compliance) to encourage brands to become more sustainable.

Fast fashion

5) Expectations

if producers foresee unfavourable market conditions in the future such as decreases in the price of their product, they may decide to reduce the quantities they supply, thus shifting the supply curve to the left and
vice versa.

The ongoing Israel Middle East conflict may at some point impact on the global cost of oil and gas which could increase inflation and cause a new cost-of-living crisis, like what happened with the Ukraine Russia conflict.

# data[].attributes.body
Equilibrium price:
The point that quantity demand is the same as quantity supply.
The quantity of the good that buyers are willing to buy equals the quantity that sellers are willing to sell.

Buyers can buy the quantity they want to buy at the market price, and sellers can sell the quantity they want to sell at the market price.

Surplus:
Supply is greater than demand
How does the market manage surplus?
Find market equilibrium by reducing supply price

Shortage:
Demand quantity greater than supply quantity
How does the market manage shortage?
Find market equilibrium by increasing supply price

# data[].attributes.attachment_link.title
Demand and Supply Explained Part 2 - Macro Topic 1.5 (Micro Topic 2.2)

# data[].attributes.body
The UK voted to leave the EU in 2016 and officially left the
trading bloc on 31 January 2020.

However, both sides agreed to keep many things the same until 31 December 2020, to allow enough time to agree to the terms of a new trade deal.
Key points:

• While the UK was in the EU, companies could buy and sell
goods across EU borders without paying taxes and there were no limits on the amount of things which could be traded. This is no longer the case.

• Freedom to work and live between the UK and the EU also
came to an end, and in 2021, UK nationals now need a visa if
they want to stay in the EU more than 90 days in a 180-day
period.

Now that it's no longer in the EU, the UK is free to set its own
trade policy and can negotiate deals with other countries.
Talks were held with the US, Australia and New Zealand -
countries that currently don't have free trade deals with the
EU.
https://www.bbc.co.uk/news/uk-politics-32810887

# data[].attributes.body
Regulatory Freedom: The UK can now set its own regulations
and standards, potentially reducing bureaucratic red tape and tailoring policies to better suit domestic needs.

Trade Opportunities: The UK will have the freedom to negotiate its own trade deals independently of the EU. This has led to new agreements with countries like Australia and New Zealand.

Control Over Immigration: Brexit will allow the UK to implement its own immigration policies, aiming to attract skilled workers from around the world while managing overall immigration levels.

Economic Resilience: Some argue that being outside the EU
will make the UK less vulnerable to economic shocks that affect the EU as a whole.

Support for Domestic Industries: With fewer EU imports, there could be an increased opportunity for domestic producers to compete and grow within the UK market.

# data[].attributes.headline
Reality of Brexit on the UK economy (key impacts ) 

# data[].attributes.subject
Reality of Brexit on the UK economy (key impacts ) 

# data[].attributes.body
Trade:

The introduction of new trade barriers has led to a decline in

trade intensity. The UK’s trade with the EU and the rest of the world has not rebounded as quickly as other major economies post-pandemic. This has made the UK less open and less global.

GDP:

The Office for Budget Responsibility estimates that Brexit will

reduce the UK’s potential GDP by about 4% in the long term.

This impact is considered more severe than the economic effects of the COVID-19 pandemic.

Investment:

Investment has also been negatively affected. The uncertainty and new barriers have made the UK a less

attractive destination for foreign investment.

Prices and Costs:
The cost of importing goods from the EU has increased,
contributing to higher prices for consumers. For example, food prices have risen due to increased import costs.

Migration:
Brexit has led to a decline in immigration from EU countries,
which has had mixed effects. While it has reduced the labour supply in some sectors, it has also opened up opportunities for domestic workers.

Overall, most economists agree that Brexit has had a negative impact on the UK’s economy, reducing its real per capita income and making it less competitive globally.

# data[].attributes.body
increased Trade Barriers: The introduction of customs checks, tariffs, and regulatory divergence has created new barriers to trade between the UK and the EU. This has led to delays and increased costs for businesses.

Reduced Trade Volume: There has been a noticeable decline in the variety and volume of goods traded between the UK and the EU. For example, exports of certain products like vegetables and textiles have seen substantial drops.

Higher Costs: The cost of importing goods from the EU has risen, contributing to higher prices for consumers. This is particularly evident in the food sector, where prices for imported items have increased.

Impact on Small Businesses: Smaller exporters have been
particularly hard hit by the new red tape and administrative
burdens, leading some to cease trading with the EU altogether.

Trade Relationships: There has been a sharp drop in the
number of trade relationships between UK exporters and EU
importers, especially affecting lower-value trade relationships

# data[].attributes.body
reduced Economic Growth: The Office for Budget
Responsibility estimates that Brexit will reduce the UK’s potential GDP by about 4% in the long term. This reduction is considered more severe than the economic effects of the COVID-19 pandemic.

Lower Investment: Business investment has been lower since the Brexit referendum in 2016. The uncertainty and new trade barriers have made the UK a less attractive destination for foreign investment.

Trade Decline: The introduction of new trade barriers has led to a decline in trade intensity. The UK’s trade with the EU and the rest of the world has not rebounded as quickly as other major economies post-pandemic.

Increased Costs: The cost of importing goods from the EU has risen, contributing to higher prices for consumers.

Labour Market Impact: Brexit has led to a decline in immigration from EU countries, which has reduced the labour supply in some sectors. This has had mixed effects, including labour shortages in certain industries.

# data[].attributes.body
increased Uncertainty: The prolonged uncertainty surrounding the UK’s future relationship with the EU has dampened investor confidence. This uncertainty has made businesses hesitant to commit to long-term investments.

Reduced Investment Levels: Business investment in the UK
has been notably subdued since the Brexit referendum. Data
indicates that business investment is about 31% below the pre-referendum trend. This stagnation has hindered economic growthand productivity improvements.

Regulatory and Administrative Burdens: New trade barriers
and regulatory requirements have increased the administrative burden on businesses. This has led to higher costs and complexity, particularly for smaller firms.

foreign Investment Decline: The UK’s attractiveness as a
destination for foreign investment has diminished. The new trade barriers and uncertainty have made other markets more appealing to international investors.

Currency Depreciation: The British pound has faced significant depreciation, which has further exacerbated economic challenges and reduced the purchasing power of UK businesses investing in foreign assets.

# data[].attributes.body
Decline in EU Migration: There has been a sharp reduction in
the number of EU nationals moving to the UK for work. This has particularly affected sectors that relied heavily on EU labour, such as agriculture, hospitality, and healthcare.

Increased Emigration: Many EU nationals who were already
living in the UK have chosen to leave, leading to a net decrease in the EU-born population in the UK.

Labour Shortages: The reduction in EU migration has
contributed to labour shortages in various industries. This has put pressure on businesses, leading to increased costs and operational challenges.

Administrative Burdens: The new immigration system has
introduced more complex and costly visa requirements for EU nationals, making it harder for businesses to hire from the EU.

Impact on Higher Education: The number of EU students
enrolling in UK universities has declined, affecting the diversity and financial health of higher education institutions.

# data[].attributes.body
Is an infectious disease caused by the SARS-coV-2 virus that first appeared in January 2020.

millions of people were infected with the virus as it was contagious and was transmitted through droplets in the air.

symptons included high temp, fever or chills, feeling generally unwell, cough, change in sense of smell/taste

ways to prevent it from spreading was to; stay indoors (national lockdown) and vacination.

# data[].attributes.body
significantly improves air quality in different cities across the world

reduced GHGs emission

lessened water pollution and noise greenhouse gas emission plummeted by a record amount

# data[].attributes.body
a-level NEA ( Crohn's disease) fashion

# data[].attributes.body
climate change:

Brexit:

# data[].attributes.body
Usually, prices are set by the market forces (where supply and demand meet) but there are various reasons governments may wish

to intervene in a free market to set prices.

For example:

The minimum wage makes companies pay a minimum rate to workers at different age bands Government sets an 'Energy Price Guarantee’ due to the rise in household and business energy bills.

# data[].attributes.attachment_link.title
Price Ceilings and Floors- Micro Topic 2.8

# data[].attributes.body
A price ceiling keeps price below equilibrium and can cause a shortage in the market.

keeps below equilibrium

A price floor keeps price above equilibrium and can cause a surplus in the market.

above the equilibrium

# data[].attributes.body
A cap set by government so that the price cannot move to the price equilibrium.

A ceiling is the maximum price a seller is allowed to charge.

Price ceiling will reduce quantity and can lead to a shortage of supply.

Example of a price ceiling:

Governments commonly impose controls (price ceilings) on utility prices such as electricity and gas.

Consequently, they want to ensure that these services remain affordable for all customers during financial hardship.

In the UK the government manages this by allowing only a few companies to sell utilities to UK consumers (oligopoly).

# data[].attributes.body
A minimum price that buyers are expecting to pay for a product.

Government wants to keep prices artificially high to support a specific sector.

If price goes up producers want to supply more.

Price floors will reduce demand and can lead to a surplus of supply.

Example:

The EU has used minimum prices for agriculture as it has argued farmers' incomes are too low.

Therefore, minimum prices have been used to increase prices above the equilibrium.

This enables farmers to get a higher return and revenue.

The big problem is that this minimum price can create a surplus.

Therefore, the government may have to purchase or subsidise the surplus to maintain a minimum price.

# data[].attributes.body
Elasticity of demand:
Measures how sensitive quantity is to a change in price.

Elasticity of demand coefficient:
The elasticity of demand coefficient
% change in quantity

--------------------------
% change in price

# data[].attributes.body
Price increase or decrease has little impact on demand.

The movement is insensitive to the change in price

Inelastic products have very few substitutes and are often INFERIOR products (needs), such as petrol, utilities, cigarettes,salt, peak rail tickets etc.

A small change in quantity when there is a big change in price the number/coefficient is less than 1 (<1)

For example:

40% increase in price = 10% decrease in quantity

russia and ukraine war (gas) little to no substitutes - russia turned of and we hand little to no oil.

buying oil for us and middle east ( fearful if anything happens in the Middle East)

Examples:

gas

electricity

# data[].attributes.body
Price increase or decrease has a big impact on demand.

The demand is sensitive to price changes.

These products will often have many substitutes or are NORMAL products i.e. wants, such as fashion or luxury items, soft drinks,cereals, cars etc where consumers have a lot of options and choice.

A big change in quantity when there is a change in price the number/coefficient is greater than 1 (>1)
For example:
20% increase in price = 50% decrease in quantity

# data[].attributes.body
A change in quantity is the same as the increase change in price so the coefficient is 1

Businesses selling unit elastic demand products must carefully assess their pricing structure as any change in price can have a similar impact on demand such as electrical items, digital
cameras, mobile phones, home appliances etc

For example:
20% increase in quantity
20% increase in price

# data[].attributes.body
perfectly inelastic:

There is no change in quantity with an increase change in price so the
coefficient is 0

Emergency services, drugs, vaccines and essential food items have perfectly inelastic demand as a price increase or decrease
will see no change in demand for such goods or services.

An increase in price has no effect on quantity, so % change is 0.

covid-19 vaccination

perfectly elastic:

An increase in price has no effect on quantity, so % change is infinite.

The demand for the product is entirely dependent on the price of the
product.

Nearest examples could include - high end priced (Veblen or exclusive goods) products such as watches, jewellery, cars, art etc.

There is an infinite change in the quantity with any change in price, so the coefficient is infinite.

# data[].attributes.body
The organisational structure and characteristics of a market.

We primarily focus on those characteristics which affect the nature of competition and pricing.

Key characteristics of markets:
The main aspects that determine market structures are:
• Number of agents in the market, both sellers and buyers
• Their relative negotiation strength, in terms of ability to set prices
• The degree of differentiation and uniqueness of products
• The ease, or not, of entering and exiting the market

The interaction and differences between these aspects allow for the existence of several market structures.

# data[].attributes.body
https://www.investopedia.com/terms/p/perfectcompetition.asp

Perfect competition is a theoretical market structure in which the following criteria are met:

All firms sell an identical product

All firms are price takers (they cannot influence the market price of their product) market share has no influence on price

Buyers have complete or "perfect" information, in the past, present and future, about the product being sold and the prices charged by each firm

Resources such as labour are perfectly mobile

Firms can enter or exit the market without cost

# data[].attributes.body
https://www.investopedia.com/terms/i/imperfect_competition.asp

# data[].attributes.body
Monopolistic competition occurs when an industry has many companies offering products that are similar but not identical.

Companies are free to set own prices

The flexibility of monopolistic competition allows companies to enter and exit somewhat easily.

Companies in a monopolistically competitive market typically try to differentiate their products to attract more customers.

# data[].attributes.body
https://www.investopedia.com/terms/o/oligopoly.asp

Key characteristics of oligopoly competition
Oligopoly characteristics include:

• High barriers to new entry
• Price-setting ability
• Product differentiation and non-price competition is allowed
• Few interdependent firms dominate market

Examples of some UK retail oligopolies:
In the UK, for example, an industry with a five-firm concentration ratio of greater than 50% is considered a monopoly
Car industry – Toyota, VW, General Motors and Ford
Petrol retail – Tesco, BP, Shell, Esso and Texaco
Coffee shop retail – Starbucks, Costa Coffee, Cafe Nero
Newspapers – In UK market share is dominated by tabloids Daily Mail,
The Sun, The Mirror, The Star, Daily Express.
Book retail – In UK market share dominated by Waterstones and
Amazon

# data[].attributes.body
https://www.investopedia.com/terms/m/monopoly.asp

Characteristics of monopoly competition:

High barriers to entry: Other competitors are not able to enter the market

Single seller: There is only one seller in the market

Price maker: The company that operates the monopoly decides the price of the product that it will sell Price discrimination

In the UK a firm is said to have monopoly power if it has more than 25% of the market share
For example:
Tesco – 27% market share of groceries
Sainsbury’s – 15% market share of groceries
Asda – 15% market share of groceries
Sports Direct - 23% market share of sportswear sector
JD Sports – 20% market share of sportswear sector
A “pure monopoly” is defined as a single seller of a product, i.e.,100% of market share.

# data[].attributes.body
According to the UN, in 2020, 36 countries were considered

"developed."

All developed countries were located in either North America, Europe, or "Developed Asia and Pacific.

Characteristics of developed/ Industrialised nations:
• Their birth and death rates are stable.
• Aging population.
• Have more women working.
• They use a disproportionate amount of the world's resources.
• They have higher levels of debt.

Goods 25% - Services 75%

# data[].attributes.body
Developing countries often have a lower income, an underdeveloped industrial base, a lower standard of living, and a lack of access to modern technology.

As a result, developing nations frequently experience a lack of jobs, food, clean drinking water, education, healthcare, and housing.

According to the UN, in 2020, 126 countries were considered

"developing."

All developing countries were located in either Africa, Asia, or Latin America and the Caribbean.

Goods 50% - services 50%

# data[].attributes.headline
Neither developed or developing countries

# data[].attributes.subject
Neither developed or developing countries

# data[].attributes.body
Although it is often thought of as a lack of material resources, poverty is correlated closely with all aspects of a person’s life: the world’s poor are more likely to be malnourished, they have less access to services like education, electricity, sanitation and healthcare, and they aremore vulnerable to conflict and climate change.

33 Countries are Neither Developed or Developing.

Goods 75% - Services 25%

# data[].attributes.body
Government economic costs:
• Total expenditure
• Support for businesses
• Health and social care
• Support for individuals
• Public services and emergency response

Sales Decline and Store Closures:
• Shift to online shopping
• Operational challenges
• Financial distress

Retail Sales Volumes:
• Overall decline
• Clothing and Accessories specific impacts
• Ecommerce surge
• Operational challenges
• Recovery and adaption

Supply Chain Disruptions and Job Losses:
• Global disruptions
• Demand shifts
• Technological investments
• Widespread unemployment
• Shift in job market
• Long term changes

Accelerated Change:
• Ecommerce boom
• AR and VR
• Casualisation of fashion
• Sustainability focus
• Local sourcing
• Inventory management
• New business models
• Enhanced customer engagement

# data[].attributes.body
Government plays a very important role in a modern economy.

Of course, there is controversy among economists regarding the optimal level of government intervention in the economy.

However, the fact remains that government expenditure and taxation programmes exert considerable influence on national income, output and other key macro-economic variables.

# data[].attributes.body
Supply-side policies: are government attempts to increase productivity and increase efficiency in the economy.

If successful, they will shift supply and demand to the right and enable higher economic growth in the long-run.

# data[].attributes.body
Free-market supply-side policies (Smith)
Involve policies to increase competitiveness and free-market efficiency. For example, privatisation, deregulation and lower
income tax rates.

Interventionist supply-side policies (Keynes)
Involve government intervention to overcome market failure. For example, higher government spending on transport,
education and communication.

Examples of UK government free market supply side action.
Brexit deregulation of EU rules, policies and procedures.

Free trade agreements – Australia, New Zealand, Norway, Iceland, japan, Israel and India

Privatisation – NHS (ongoing stealth policy)

# data[].attributes.body
Monetary policy is action that a country's central bank or government can take to influence how much money is in the economy (inflation) and how much it costs to borrow money (interest rates).

It is the balance between inflation and interest rates that the banks use to try and maintain a stable economy which is good for economic growth and employment.

# data[].attributes.body
Core beliefs:

Monetarism focuses on the role of money in economic fluctuation

1. Inflation is caused by excess money in the economy

2. Contraction of money flow can be linked to economic downturns

3. Fluctuation in the quantity of money causes fluctuation in the price level and its relationship with income/wages

4. Manipulation of money supply can impact on balance of payments and exchange rates

5. Government short term fiscal or monetary reaction is ineffective (Keynesism)

6. Long term monetary policy with set targets is the required for long term economic sustainability

inflation and intetest rates links back to milton friedman - once we have stability we have smith (anti-keynes ).

# data[].attributes.attachment_link.title
Essential Milton Friedman: The Theory of Money and Prices

# data[].attributes.body
Fiscal policy involves changing the level of taxation, government spending and borrowing to drive the rate of economic growth and unemployment.

# data[].attributes.headline
The role of the Bank of England controlling spending 

# data[].attributes.subject
The role of the Bank of England controlling spending 

# data[].attributes.attachment_link.title
Role of the Bank of England: controlling spending (episode 3)

# data[].attributes.body
An interest rate is a percentage charged on the total amount you either borrow or are paid on the amount you save.

If you’re a borrower, the interest rate is the amount you are charged for borrowing money – a percentage of the total amount of the loan Interest is what you pay for the privilege
It's the cost you pay to ‘hire’ someone else’s money.

If you’re a saver, it’s the same except the interest is paid to you – because banks are paying you to hire your money.

# data[].attributes.body
businesses borrow and invest less

Businesses receive more interest on money saved in the bank

Consumers save more money and spend less on goods and service

# data[].attributes.body
Businesses may borrow and invest more

Businesses will receive less interest on money in the bank
Consumers are less likely to save and will be more willing to spend

money on goods and services

# data[].attributes.body
INFLATION is a general INCREASE in the price level of goods and services in the economy over time

DEFLATION is the opposite of inflation, which is marked by a general DECREASE in the prices of goods and services.

# data[].attributes.body
Prices will rise

Wages will always lag the change (“sticky”) – people will feel poorer

Customers may stop buying luxury goods (wants) and focus on essentials (needs)

Overall spend will fall

cost-of -living crisis

# data[].attributes.body
Prices will fall

Wages remain the same – people feel better off

Customers may start to buy luxury goods (wants) and focus less on essentials (needs)

Overall spend will rise

# data[].attributes.body
Economic growth is an increase in the production of economic goods and services, compared from one period to another.

Traditionally, aggregate/total economic growth is measured in terms of Gross Domestic Product (GDP), although alternative metrics can sometimes be used.

# data[].attributes.body
More jobs will be created

More tax will be paid

Higher levels of employment

People have more disposable income to spend on goods and services

This is known as a BOOM

# data[].attributes.headline
impact of WEAK or a DECLINE in economic growth

# data[].attributes.subject
impact of WEAK or a DECLINE in economic growth

# data[].attributes.body
Higher levels of unemployment

less tax/income for government

incraese in teh cost of benefits for unemployed people

people wiil have less money to spend on goods and services

This is also know as a RECESSION

# data[].attributes.body
Russia launched an invasion of Ukraine on February 04th 2022,sending troops into the ex-Soviet nation from three fronts and firing missiles on several locations near the capital, Kyiv, in a broad attack that has drawn deep condemnation from world leaders.

At dawn, troops and armour crossed into eastern Ukraine from the Russian border, as well as from Belarus in the north and from Russia-annexed Crimea to the south.

Russian President Vladimir Putin made a speech, saying he had decided “to conduct a special military operation ... to protect peoplewho have been subjected to abuse and genocide by the Kyiv regime for eight years,” repeating a baseless claim about Ukraine’s Russian-separatist-backed Donbas region.

He denied, however, that Russia was planning to occupy Ukrainian territories. “We are not going to impose anything on anyone by force.”

https://edition.cnn.com/

# data[].attributes.headline
Examples of economic impact - Ukraine Russia conflict

# data[].attributes.subject
Examples of economic impact - Ukraine Russia conflict

# data[].attributes.body
Rising costs – scarcity of oil and gas, drove up energy prices and caused a huge spike in inflation which led to the global cost-of-living crisis

Disruption to supply chains – availability of raw materials and trade pathways closed

Market withdrawal from Russia – closure of store and online businesses

Sanctions and boycotts against Russia – no trade with

Russia or Russian businesses

Ethical and social responsibilities – need to take a stance majority in support of Ukraine, including making donations to the cause