Economic System in UK

The UK is a country with a significant population and a supportive economic system for both its people and businesses. Various industries such as textiles, chemical products, and locomotives are prominent contributors to the UK's economy, which ranks 6th in the world in terms of nominal GDP.

The UK's economy is considered mixed, with some sectors managed by the government and others by the private sector. England boasts the largest economy within the UK, largely due to its focus on the service sector.

Industrialization and entrepreneurship have historically played crucial roles in the UK's economy, offering both advantages and disadvantages that need to be carefully understood for business enhancement.

Advantages of Market Economy in the UK

• Job Security: Government sectors in the UK offer greater job security due to adherence to labor laws and regulations, whereas private sectors prioritize profit, often resulting in temporary employment.
• Basic Human Rights: Private sectors in the UK may prioritize profit over basic human rights, while institutions like the NHS help ensure certain rights are upheld.
• Market Competition: Monopolistic businesses hold significant control over the market (around 25%), leading to cost-efficient operations but potentially resulting in market failures. Government intervention can encourage market competition and regulate prices.
• Economic Policies: Government investment in various economic sectors encourages business growth and job creation. Policies such as tax increases can boost people's buying power, while initiatives like interest rate reductions by institutions like the Bank of England facilitate borrowing.

Disadvantages

Instead of the above economic facilities in the UK there are various disadvantages as well as milestones for the economic growth in the UK. Economic crisis faced by Uk also can be seen here in this disadvantages part. Capitalism socialism can be seen as the main aspect for economic degradation in the UK. The collision between the two sectors between capitalism and socialism can be seen to be involved as with time the situation can become bitter one. Moreover the fight between the private and public sectors can be seen to be evolved here in this case easily.

There are following disadvantages to be discussed:

• Different ideologies are involved that can be seen to be affecting the business and the conflict can be seen to be criticizing the economic issues here (Li, 2018). Competition can be evolved that cannot bridge the good relation between the private or public sectors. Using ineffective tools can be seen to be involved here in this aspect for their business involved. Alternative solutions to minimize the problems can also be seen here in this part easily. The central or the atomistic competition can be seen to be ineffective one and if the two of them depend on each other then the situation can be seen as problematic one.
• A violent chase between the two sectors can be seen to be evolving and can be an effective one for the business. The private sector can be facing a great loss in terms of private sectors available (Bertolini, A., 2018). When the problem persists on public sectors then the capital economy can be seen to be peristing here. Rather it becomes socialost if this becomes more powerful.
• The mixed economy can be said to be the disease phase of the economy as the capital or the social phase are seen to be colliding. The planning as a control of economic life can be seen to be a loss of identity here in this case for the economy. The economic consistency is sometimes seen to be affecting due to the mixed values available. Moreover, the regeneration can be seen as leaving the intensive phase from the private sectors available (Nse.pku, 2019).

Market failure

The production and allocation of scarce resources are seen to be available here in most efficient ways. The inefficient production and the distribution of those products in the market is generally seen to be the market failure in the UK. Moreover the other case can be when the quality supplied and demanded are not the same. Externalities are the part that is a great market failure and is one of the issues to be looked for in the business in the UK. The market is seen to be negative in the business and in the marketing aspect. Here the consumer or productionists do have to face this burden or issue for their self interest. Most of the externalities arise from the consumption or the emission of those products in the market (Mazzucato, 2016). These negative externalities are seen to be imposed legal restrictions on by the government. Thus the products are not going to be sold with a good profit in the market. These goods do affect the consumers in many of the ways and are seen to be causing harm to the consumers health. An illustration can be shown by the following graph available:

The market price is OP here, OQ is the demerit good. At OQ the demand supply or social marginal cost price exceeded by the XY.

The other part of this economic system is policies to be discussed in UK. The governmental rule and the legislations are the one seen to be important for the UK. The GDP growth can be said to be lowering since past one or two years. A strong majority have been formed by the government for the economic disruptions and also for the reducing the tax burden that were involved here in this case. The property rights and the rule of law were involved here in this case of economical hitting in UK.

According to WHO the consumption of tobacco and cigarettes are harmful for consumers' health. Thus they are being banned by the government in the UK and the profit made by them is getting a marketing failure and the externalities available. The demands and the supply reduction of those goods can be easily seen in this study. The directives of these products also face a great problem for these products so that the consumers can be alerted easily. A great cause can be seen over the business and also on the loss of the business in the present market in the UK. Various of the cause and effects are also seen in the environment due to these goods. Moreover these cause a great harm to the people's health so that they can reach to death also. The supply and demand also seem to be degraded easily in the market so that the business can be growing easily. The cost and the benefits are also seen to be affecting here in this case easily (Tutor2u.net, 2020).

UK have an advanced capitalist economy that can be said as the mixed and the market oriented economy system in UK. The long classical liberalism can be easily seen over here in this part for UK. The lasses faire of UK system is reflected here in this part of economical system in UK. These economical aspects are private in terms of various of the sectors. The geographical aspect generally plays an important role in this aspect. The capital London is the centre of commercial and cultural aspect that are seen in UK. It acts as the global hub in Uk and the economical system generally worked according to this aspect easily.

The solution is provided as below:

• European commissions have proceeded with proper changes in the good effectiveness and also to bring alternatives of those goods.
• Ban the label and also provide proper pictures of those health warnings on these products packets.
• The prevention policies are to be understood here first and then the manufacturing must go on according to those policies.
• The british sustainability agenda must be seen here properly so that the business and the agenda can be formed up properly.
• The british american tobacco key figure must be understood properly. The business must proceed by taking legal and assurance from the government so that the business cannot see loss and the economic condition may not have to face any problem (Ofcom.org, 2020).

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Reference list

• Hopkin, J. and Alexander Shaw, K., 2016. Organized combat or structural advantage? The politics of inequality and the winner-take-all economy in the United Kingdom. Politics & society, 44(3), pp.345-371.
• Xu, G. and Chen, L., 2019, July. Research on the Ways for Companies to Gain Competitive Advantages in UK. In 4th International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2019). Atlantis Press.
• Li, Y. and Heath, A., 2018. Persisting disadvantages: a study of labour market dynamics of ethnic unemployment and earnings in the UK (2009–2015). Journal of Ethnic and Migration Studies, pp.1-22.
• Bertolini, A., 2018. Experience of labour market disadvantage: a comparison of temporary agency workers in Italy and the UK.
• Mazzucato, Mariana, and Caetano CR Penna. "Beyond market failures: The market creating and shaping roles of state investment banks." Journal of Economic Policy Reform 19, no. 4 (2016): 305-326.
• http://www.nse.pku.edu.cn/attachments/889fac36ce7642c19338199a961a399c.pdf">Nse.pku, 2019, Advantages and Disadvantages of economic business in UK [available on: 30.03.2020]
• http://journals.uran.ua/tarp/article/viewFile/119537/114813">Journals.uran, 2020, Problems of macroeconomics and socio-economic development [available on: 30.03.2020]
• https://www.tutor2u.net/economics/reference/financial-economics-financial-market-failure">Tutor2u.net, 2020 Types of market failure [available on: 30.03.2020]
• https://www.ofcom.org.uk/__data/assets/pdf_file/0025/174634/online-market-failures-and-harms.pdf">Ofcom.org, 2020, Market failure in UK [available on: 30.03.2020]