Business Markets
and the Economy
Andrew Wheeler
2014
Government Policy & Local Business
Markets
Your Local Enterprise Partnership has asked you
to produce a report to help board members of
the LEP better understand how government
policy and LEP policy can influence business
markets.
Your report needs to answer the
following questions:
Later on….
• Why are these markets regulated more than others? (M3)
• Should the LEP be concerned about Europe? (P7)
• How do EU decisions affect businesses? (D2)
• What are the implications for the LEP?
• Finally, please provide an evaluation of the effectiveness of
regulatory regimes in one of the key New Anglia sectors.
Grading Criteria
P4 describe the role of the
government in influencing the
economy and business activity
P6 describe how business
markets are regulated in the UK
Grading Tips
To achieve P4 you need to describe the range of
government policies that exist and influence
business markets. Emphasis should be placed on
local business markets and those policies which
most impact on local business markets.
Grading Tips
To achieve P6 you need to consider how
governments intervene in markets to regulate
them. Intervention can be through taxes and
subsidies which are designed to distort the
market to achieve specific objectives.
BTEC Unit Content
Understand how markets are
regulated in the UK economy
Role of government:
• Market failure
• Justification for
intervention
• Market regulation
• Deregulation
• Unfair competition
• Competition policy
•
•
•
•
Competition Commission
Privatisation
Private Finance Initiative
government policies:
– subsidies
– taxation
Later… (P7)
International factors:
European Union; the single market (free trade,
harmonisation, capital, labour, technical
standards, simplified trading); monetary union;
social chapter.
How does government influence the
economy and business activity? (P4)
•
•
•
•
•
•
•
Taxes
Interest Rates
Subsidies
Regional Incentives
Regulations
Training Schemes
Enterprize Zones
• Competitions
• Sector specific
interventions
• Grants
• Export Missions
• Promoting Tourism
• Minimum Wages
New Anglia
Local Enterprise Partnership
How can the LEP influence local business markets?
(P4)
How can the LEP influence local business markets?
(P4)
To find out more go to
http://www.newanglia.co.uk/Home
Business Markets
and the Economy
Andrew Wheeler
2014