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P5 Boom and Recession

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Task 1: Boom and Recession (P5 – Part 1) Current | Boom / Economic growth | Recession | Country - % - Year | Country - % - Year | Country - % - Year | GDP Growth rateUK – 0.5% 2015CHINA – 1.8% 2015 | UK – 1.5% 1983CHINA – 11.7% 1978 | UK – 0.3% 2008CHINA – 9.2% 2009 | Inflation rateUK – 0.1% 2015CHINA – 1.3% 2015 | UK – 4.6% 1983CHINA – 8.3% 1978 | UK – 3.61% 2008CHINA – 0.9% 2009 | Interest rateUK – 0.5% 2015CHINA – 4.35% 2015 | UK – 9.8% 1983CHINA – 7.5% 1978 | UK – 5% 2008CHINA – 2.52% 2009 | Unemployment rateUK – 5.3% 2015CHINA – 4.05% 2015 | UK – 2.6% 1983CHINA – 4.9% 1978 | UK – 5.4% 2008CHINA – 4.2% 2009 |

Describe how the current economic environment is impacting on your two chosen Businesses (P5 - Part 2)
TESCO
Tesco is negatively affected by economic elements because it affects its price profits and the cost of its products and services. Unemployment rate is one of the factors that affect the company’s profitability. Unemployment decreases the demand for its products and services and in the end, its profitability. Unemployment is a major concern to the company because it is beyond its control. It affects its marketing opportunities and its overall performance in local and international markets. Even though Tesco is expanding its operations globally, it doesn’t make the profits it would be able to make because of unemployment. Its income over the past few years have greatly increased but since it is largely dependent on UK market; unemployment rate in the country will mean low profits for Tesco.
Recession is affecting Tesco as it brings the company decrease in Sales as customers are buying less. It is also a reason for the decrease in Profits due to high product prices as customers are buying less due to the recession and intend to spend less. Customers will experience having less disposable income, which means they will

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