Explain how economic systems attempt to allocate resources effectively

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Business Environment

TASK one:

2.1 Explain how economic systems attempt to allocate resources effectively
2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities.
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization.
2.4 Identify and apply strategies to find appropriate solutions

Guidelines to achieve:

• 2.1: Briefly describe main economic systems like socialism, state economy, etc. and explain how each economic system attempts to allocate resources (people, raw material, money etc) effectively;
• 2.2: Explain the governmental policies (e.g. monetary, fiscal, social,) explain how the taxation level, interest rate, value of the pound and euro will positively or negatively affect business organization,
• 2.3: Choose any national or international organization and discuss how it is constrained by competition policies e.g. regarding monopolies and by regulations (good examples might be UK supermarket chains or airport operators)
• 2.4: Analyse the economic system and governmental policies of the UAE and evaluate how does the UAE attempts to allocate resources effectively.

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