Structure Economy Changed | Structural Change in the Australian Economy

Introduction

Structure Economy Changed enhancement in the growth of economy has large impact over the functioning of any organization. Celsa Steel organisation has been undertaking their activities in UK, so the impact of economy will be seen on the growth of the enterprise. It indicates that financial crisis of UK in the period of 2008 has laid down huge impact over the production of Celsa Steel organisation. In this respect it has been found in the domestic and international market that product demand reduced Structure Economy Changed | Structural Change in the Australian Economy(Goodwin.et.al, 2013). It has also been observed that during the period of 2009 there was drastic fall in share price of the company. The reduced growth of economy has laid down great impact over the operational functioning of Celsa Steel organisation to undertake their activities in an appropriate manner.

3.2 Tools available to meet macroeconomic policy challenges

In order to meet the challenges of macroeconomic activity one of the tools that can be used by an economy is monetary policy. It is an aspect that lays down control over the money flow within the economy and in turn helps in laying down control over the inflation and recession. Under the case of inflation money flow is enhanced as in that situation consumer is not in a situation of purchase and in the case of recession money flow is decreased (Officer, 2008). The monetary policy has got direct impact over the functioning of Celsa Steel organisation as during inflation the money flow will be large but consumer would not be in a position to purchase. Thus, business has to reduce the price of their products in order to allow consumer to carry out their purchase process it reduce their overall profits.

Another tool is fiscal policy for meeting of macroeconomic challenges of an economy. In a case if government is going enhance their fiscal policy then Celsa Steel organisation need to pay higher tax for carrying out their operations within the economy (Johnston, 2011). This in turn is going to reduce the overall profits of Celsa Steel organisation.

3.3 Government’s policies in achieving macroeconomic objectives;

After undergoing extensive research it has been identified that sovereign of UK has formulated appropriate policies for achieving their macroeconomic objectives (UK economy at a glance. 2016). The policies that have been drawn by government in this respect are as follows:

  • UK government has laid down greater control over their financial borrowings and is also planning to reduce their overall national debt.
  • Economy has been identifying the ways in different sectors for enhancing the level of higher employment within UK.
  • Government of UK is also planning out the ways that can be adopted for achieving competiveness within the international market by enhancing trade of different products.
  • The consumer price inflation has also been kept to be around 2% that has helped in enhancing the purchasing power of customers.

Structure Economy Changed | Structural Change in the Australian Economy

If Celsa Steel organisation is going to undergo these policies then it will be having large impact over their functional activities. Organization not undergoing the above policies in an effective manner is going to reduce their sales in the domestic and international market and this turn is going to reduce their overall profits.

3.4 Economic performance of UK in global market

Figure 5: GDP of UK economy for 2001-2013

The economic performance in the global market is seen to be slowdown after the period of 2008 financial crisis that hit the economy. From the above figure 5 it could be interpreted that gross domestic product of the economy has decreased over the period and it has laid down great affect over their economic performance in the global market.  This decreased GDP indicates that organizations are not able to compete appropriately within the global market that has laid down affect over the growth of the economy (United Kingdom – Economic forecast summary. 2016). However, after the period of 2013 it could be seen that there is slow growth in the economic functions. Thus, this economic factors show that UK economy is not at its best as statistics drawn out of 2015 has also showed that there is slowdown within the economy concerning the GDP and manufacturing. It clearly indicates that economy is not at its best position and is definitely going to lay down affect over the activities of Celsa Steel organisation by reducing the revenues and profits.Order Now