ASSIGNMENT 3THE ECONOMY

AN INTRODUCTION TO THE ECONOMY

•The Economy is the state of a region in terms of the production and consumption of goods and services in relation to the supply of money.

THE ECONOMIC CYCLE

• Recession is defined as 2 consecutive quarters of negative economic growth.

• Growth is defined as 2 consecutive quarters of positive economic growth.

• The peak is the height of growth before recession.

• The trough is the point recession turns to growth.

Recovery=boom

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AN INTRODUCTION TO THE ECONOMY

• INTEREST RATESThe rate at which the interest is paid by borrowers to lenders.INFLATIONA general decrease in the purchasing power of money and an increase in the value of goods.Increases business competitiveness.Risk of wage inflation increases.Cost of borrowing increasesDEFLATION A general increase in the purchasing power of money and a decrease in the value of goods.A side effect of deflation is unemployment.Also increases value of debt.Decreases consumer spending increasing deflationary pressureDEMAND AND SUPPLYDemand and supply is the relationship between the availability of goods and the quantity of which that consumers desire.

RSPCA

• The RSPCA (Royal Society for the Prevention of Cruelty to Animals) is based in England and Wales, founded in 1824 and aims to prevent the mistreatment of domestic and wild animals.• Their mission statement is “by all lawful means, prevent

cruelty, promote kindness to and alleviate suffering of all animals.”

RECRUITMENT OF STAFFRECESSION

Animal Abandonment Number of staff

Demand for staff Number of donations

FundsStaff workload

RECRUITMENT OF STAFFBOOM

Number of staff Animal Abandonment

Number of donations Demand for staff

Staff workloadFunds

PRODUCT DESIGNRECESSION

Product designers

Demand for staff Demand for products

Product varietyStaff workload

PRODUCT DESIGNBOOM

Product demand Demand for staff

Product designers Staff workload

Product variety

SWISS GDP COMPARISON

• UK GDP is higher

• Switzerland’s GDP fluctuates less

• Swiss recessions are more mild

• The UK’s GDP is more dependant on the GDP of other countries than Switzerland

SWITZERLAND COMPARISON

• Switzerland is not member of the EU but is landlocked by countries that are. This limits their trading.

• Switzerland is part of the Schengen area allowing Swiss and European Union citizens the right to move freely between their countries.

SWITZERLAND COMPARISON

• Switzerland is not member of the EU but is landlocked by countries that are. This limits their trading.

• Switzerland is part of the Schengen area allowing Swiss and European Union citizens the right to move freely between their countries.

CHARITY COMPARISON

United Kingdom Schweiz(Switzerland)

WWF SCHWEIZ

Switzerland has a more stable political situation leading to a consistent number of donations

The UK has a larger GDP so more may be donated

Switzerland has less serious recessions meaning the amount donated doesn’t dip too low

Switzerland has a lower population than the UK so there are less sources of income

Switzerland has a less charitable populous so they are less inclined to donate to the WWF

The WWF is a global charity so funds from around the world may be allocated to it

Switzerland has a higher unemployment rate so they cannot donate as much to the WWF