The main budget announcements from the five-year plan set out by Chancellor of the Exchequer George Osborne yesterday set out actions to reduce the budget deficit, to introduce a 'fairer' tax system, encourage enterprise and support long-term growth in the economy. The Coalition Government's three core values of responsibility, freedom and fairness are the basis for the Budget intentions to help rebalance the economy and provide conditions for sustainable growth.
In order to reduce the deficit the Chancellor has set a fiscal mandate to achieve a current balance by the end of the five-year period 2015-16; a target for debt to ensure sustainable public finances; spending reductions of £31.9bn/year by 2014-15 and tax increases of £8.2bn; £29.8bn of savings from current expenditure and £2.2bn from gross public investment; increase in VAT to 20%; indurance Premium Tax to 6%; a two year pay freeze on public sector pay (except those on less than £21,000pa who will get an additional £250).
Conditions for enterprise and sustainable growth were also set out to make UK more competitive by reducing regulation and providing tax breaks. Corporation tax rates will be reduced from 28% to 24%; the small profits rate will be reduced from 21% to 20%; NICs holiday for new businesses in certain areas; an increase in the Enterprise Finance Guarantee and a new Enterprise Capital Fund; a Regional Growth Fund in 2011-12 and 2012-13 for increases in business employment and growth.
The deficit reduction burden will be shared, the Budget says, by refocusing the tax and benefit framework and 'protecting the most vulnerable in society'. The Government want to encourage people to take personal responsibility, work hard and save responsibly. The personal allowance for under 65s will be increased by £1,000 to £7475 in 2011-12 taking 880,000 out of income tax; capital gains tax increase from 18% to 28% for higher rates and an extension of the 10% rate for entrepreneurial activites from first £2m to first £5m of qualifying gains made over a lifetime; a council tax freeze; a levy on banks balance sheets from January 2011. The basic State Pension will be uprated by a triple guarantee of earnings or 2.5% whichever is highest, from April 2011; reduction in tax credits for those with household income over £40,000 from £50,000; reducing annual allowance of pension tax relief; indexing benefits to the CPI instead of the RPI to reflect more fairly benefits claimants experiences.
The Government added that the Budget measures will pay for the past and plan for the future. They represent a first step in the transformation of the economy, rebalancing growth and lead to sustainable, private sector led growth.
Showing posts with label regulations. Show all posts
Showing posts with label regulations. Show all posts
Wednesday, 23 June 2010
Monday, 16 February 2009
Am I My Brother's Guardian? - Risks In International Marketing
The globalisation process has meant radical changes all over the world. Global competition affects everything everywhere. For many people the world has got a lot smaller in terms of geographical and cultural differences. Many businesses have been able to expand their market coverage. Companies are able to take advantage of new opportunities in selling and buying abroad (Kotler, 1999).
International firms may have to co-ordinate their operations functions across borders. The various departments of a company may take place in several countries. Those who want to 'Buy British' may have to carry out some research to find out where the parts, components, manufacturing and assembly of their desired items were carried out. British products are often made abroad and 'foreign' products made here (Kotler, 1999).
Global marketing means that more companies than ever are in strategic alliances with other companies from abroad to some degree. The need for technological and marketing resources is forcing companies to look for partners. Customers expectations are raised by these developments. 'More for less' is offered by many companies and customers are offered quality products at discount prices (Kotler, 1999).
At the same time consumers expect businesses to take responsibility for the social and economic impacts of their activities. Pressure groups are placing strict demands on companies regarding air, water and soil pollution, rain forests, global warming and endangered species (Kotler, 1999). Ethical requirements differ from one place to another. Business practices in some countries may create a moral dilemma for businesses with social and environmental policies (Brassington and Petitt, 2000).
Customers are more internationally oriented and suppliers have to follow. In the service industry it may be better to stay close to the customer and locate appropriately. Culture is important and understanding the conventions and etiquette of the local culture is vital (Brassington and Petitt, 2000).
The economic risks are also greater than before. International marketing involves exposure to exchange rate risks. Changing currency from home to host or some other agreed currency and then buying the item may involve a change in the exchange rate. The ERM reduces most of the uncertainty for members. A strong currency can put potential traders off. A weak pound favours exporters. High foreign country debt and inflation may be problematic. In poor countries the problem might be inability to pay. Entry requirements to host countries relate to a variety of working practices and marketing mix adaptation costs will also have to be considered (Jeannet and Hennessey, 1998, Kotler, 1999).
Businesses also face risk due to changes in the political climate affecting the way partners interact. A company could lose all of its investment in another country because of the influence of special interest groups and the prevailing political philosophy. A sudden change of power may lead to a hostile political climate. It is advisable to do a political risk assessment where there is any doubt about a potentially volatile political climate. The assessment can be integrated into risk reduction strategies to help with business continuity in the markets entered, to leave a market or not enter and to analyse genuine market opportunities (Jeannet and Hennessey, 1998).
Competitive behaviour and product liability regulations can be complex. International and supranational regulations can be contradictory or enforced differently. Complaints about unfair competition can be taken to the host country, the regional bloc, like the EU, or global bodies like the WTO.
The broadening of marketing boundaries brought about by globalisation and the complete changes in Eastern Europe has produced trends of trade liberalisation, deregulation and privatisation (Jeannet and Hennessey, 1998). It will bring opportunities and competition. Systems and structures can be developed to exploit the opportunties that arise.
International firms may have to co-ordinate their operations functions across borders. The various departments of a company may take place in several countries. Those who want to 'Buy British' may have to carry out some research to find out where the parts, components, manufacturing and assembly of their desired items were carried out. British products are often made abroad and 'foreign' products made here (Kotler, 1999).
Global marketing means that more companies than ever are in strategic alliances with other companies from abroad to some degree. The need for technological and marketing resources is forcing companies to look for partners. Customers expectations are raised by these developments. 'More for less' is offered by many companies and customers are offered quality products at discount prices (Kotler, 1999).
At the same time consumers expect businesses to take responsibility for the social and economic impacts of their activities. Pressure groups are placing strict demands on companies regarding air, water and soil pollution, rain forests, global warming and endangered species (Kotler, 1999). Ethical requirements differ from one place to another. Business practices in some countries may create a moral dilemma for businesses with social and environmental policies (Brassington and Petitt, 2000).
Customers are more internationally oriented and suppliers have to follow. In the service industry it may be better to stay close to the customer and locate appropriately. Culture is important and understanding the conventions and etiquette of the local culture is vital (Brassington and Petitt, 2000).
The economic risks are also greater than before. International marketing involves exposure to exchange rate risks. Changing currency from home to host or some other agreed currency and then buying the item may involve a change in the exchange rate. The ERM reduces most of the uncertainty for members. A strong currency can put potential traders off. A weak pound favours exporters. High foreign country debt and inflation may be problematic. In poor countries the problem might be inability to pay. Entry requirements to host countries relate to a variety of working practices and marketing mix adaptation costs will also have to be considered (Jeannet and Hennessey, 1998, Kotler, 1999).
Businesses also face risk due to changes in the political climate affecting the way partners interact. A company could lose all of its investment in another country because of the influence of special interest groups and the prevailing political philosophy. A sudden change of power may lead to a hostile political climate. It is advisable to do a political risk assessment where there is any doubt about a potentially volatile political climate. The assessment can be integrated into risk reduction strategies to help with business continuity in the markets entered, to leave a market or not enter and to analyse genuine market opportunities (Jeannet and Hennessey, 1998).
Competitive behaviour and product liability regulations can be complex. International and supranational regulations can be contradictory or enforced differently. Complaints about unfair competition can be taken to the host country, the regional bloc, like the EU, or global bodies like the WTO.
The broadening of marketing boundaries brought about by globalisation and the complete changes in Eastern Europe has produced trends of trade liberalisation, deregulation and privatisation (Jeannet and Hennessey, 1998). It will bring opportunities and competition. Systems and structures can be developed to exploit the opportunties that arise.
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