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APL Vietnam Tool Allocation and Economic Coverage Effects

When people start to trade their products, economy was created, however, include that there are many problems happen, so it's time to set up a system to solve these problems in the effective way. And there are three types system that will help to solve problems; they are really free market economies, command line economies and blended economies.

  • Free market economies

In free economies system, it's just like its name; it's free therefore the resources are allocated through the interaction of free and self-directed market causes. In this technique, what the products should be produced depend on the customers, how to create is rely upon producers and who will get the products will base on the purchasing electric power of customers.

  • Command economies

In this technique, command economies indicate the economies will be under the control of the Government. At the moment, the scarce resources will be allocated by the federal government, everything will be chose by the federal government, what things to produce as well as for whom to create will be determined by Government preferences and how to produce will be determined by government and their employees.

  • Mixed economies

Mixed economies system gets the particular private sector as well as public sector, most the decisions are created by the Government with the market orientation. In this system, what to produce will be identified partially by consumers preferences and partially by Federal government, how to produce will be decided half by companies and 50 percent by Government as well as for whom to create is determined fifty percent by purchasing ability and 50 % by Government tastes.

(sources: economicsonline. co. uk[5/7/2013])

As you can see, the main distinctions of three systems above are in what to produce, how to create and for whom to create. These three things will be the factors that make these three systems become distinction to one another.

Now, in my opinion, the UK is currently using open current economic climate system, to learn about this obviously, we should know very well what the open market system is. Start economy is mostly free from trade barriers and where exports and import for a big ratio of GDP. No current economic climate is surely 100% total open up or sealed in term of trade limitations. Amount of openness of an economy determines a government's flexibility to pursue monetary guidelines of its choice, in term of the percentage of the GDP dependent of international trade the UK is more open economy than the US.

(resources: businessdictionary. com[5/7/2013])

To the wide open monetary system is good or bad for UK, now we can easily see some example for the reliable resources, relating to BBC information the gross domestic product in Q1 of 2013 increased 0. 3%. GPD progress between Q4 2011 and Q1 2012 was revised from a fall season of 0. 1%, this implies the UK overall economy did not take any impact from the double-dip downturn as previously report.

(options: bbc. co. uk[5/7/2013])

(sources: tradingeconomics. com[5/7/2013])

On top of this, the grow in service industries resumed in Q1 2013 has increased by 0. 5%, the productivity of circulation, hotels and restaurants business increased by 1. 2% in Q1 2013, the productivity of transport, storage and communication market sectors rose by 1. 4% in Q1 2013 because of the increasing in computer programming, consultancy and related activities, land move and telecommunication and the productivity of government and other services increased by 0. 4% in Q1 2013.


The impact of the fiscal and monetary policy on APL Vietnam and their business activities

UK fiscal policy is concerned with Government spending, taxation and the budget deficit. For an example, if UK Government reduces the budget deficit through higher taxes and lower spending, this is a deflationary fiscal insurance plan or tight fiscal coverage.

UK economic policy requires using rates of interest and other monetary tools to effect the amount of consumers spending and Aggregate Demand (AD)

The target that the UK monetary policy headed to is to regulate the inflation inside a concentrate on of CPI 2% +/-1. In addition, UK also considers other macroeconomic like progress and unemployment.

However, the united kingdom monetary insurance policy is not set by the federal government, it's establish by the Monetary Insurance plan Committee (MPC) of the Bank of England, these are independent of placing the interest rate however, they need to meet the concentrate on of Authorities is to regulate the inflation.

(resources: economicshelp. org[6/7/2013])

These two procedures are very important to the market throughout the world in general and UK overall economy in particular, because these policies can be used to package with two main problems of current economic climate, these are unemployment and inflation. As you know, the fiscal insurance plan is utilized to deal with with the unemployment since it requires popular actions like increasing spending and trimming fees. However, when fighting with each other with inflation Administration need to take unpopular action lowering spending and increasing taxes, so Authorities has to use monetary insurance policy to deal with inflation. THEREFORE I can say, it is rather very important to UK market.

(sources: economics[6/7/2013])

APL logistics is now working in UK, so UK environment will take many impacts to APL Company because of these policies. As you do know, the world now is in the inflation therefore the monetary plan will be utilized. The actions of Administration can be increasing the interest of bank loans, reducing the amount of money source for company and increasing fees. For APL logistics, they may be big problems for company because APL logistics is an international company, as it pertains to UK; it needs the helps from Administration now the inflation happens, of course the income of company will decrease, however, at this time, the interest rate of bank loans are high, APL cannot deal with the loans because APL must pay more, and with the limited of money source so that it cannot help APL very much at this time, and Authorities also increases the taxes. The expenditures are high equate to the retained income are low, APL must help itself to conquer the inflation, if doesn't it must go bankrupt, which is why so many companies go bankrupt when inflation happens.

On top of this, the total amount of money is also focused by the Government; it's about import and export. The APL company s working in logistics, this is the key field that company work on, in other words, APL is developing or not rely upon the import and export of the coordinator country, in cases like this is UK. The import and export of company need to balance, if the export is greater than import, foreign obligations will occur, if there are way too many debt this country may maintain trouble of bad debts. So to control the transfer and export, UK authorities has increased the import taxes so if there are any products come to UK from other countries, consumers need to pay more. Most of folks don't want to pay more because there are a great many other alternative products that come from UK with lower prices, and the import will automatically reduce. To raise the export, UK authorities can decrease the prices which products are exported so the fees can also reduce when UK's products go abroad. A couple of two choices that APL logistics must face with, and perhaps, if the import and the export of one country is lessening, this will have a negative impact to APL logistics, in cases like this is UK.

The impact of competition policy and other regulatory mechanisms on the activities of APL Vietnam

In basic we can understand the plan is the procedures designed to prevent collusion among firms also to prevent individual companies from controlling the marketplace, and having unnecessary market ability. Major forms include oversight of mergers and elimination of price fixing and market showing.

(sources:. investorwords[7/7/2013])

In UK, competition lax is a adaptable device. With one exemption, the legislation is dependant on the premise that all case should be judged by the genuine impact which a practice is wearing competition and whether it's against the general public interest. The public interest has a broad meaning which is not precisely identified in the legislation.

(sources: http://businesscasestudies. co. uk[7/7/2013])

Although we realize that, if there is not competition you will see no development, which means you can see the competition is vital because companies will attempt to make their products become better and cheaper to meet the need of consumers. However, as a result of competition, many companies can your investment customer's health; they just concentrate on their revenue like products with low quality and sell at normal price (like any other good quality products). They simply want to entice more customers so they can have more profit. Another reason that makes Government have to release the competition legislation is "dumping", this will eliminate the purchase price standard in the market.

So the federal government makes market just because a healthy market by preparing the typical of products, all the products want to sell to the marketplace, have to pass all the benchmarks that Federal government released. Along with the dumping, Administration will control all the prices in the market, if company want to market any products to advertise, these products need to have the arrangement of the federal government, in addition, Government will public the costs of food, gas, electricity to prevent companies that work in these areas increase the prices. In addition, there are two basic rules in the market that never grab customers from others and when one company want to compare products between its product to other companies' products they can not use the really name of other companies' products. With all these basic things that I've mentioned above, Government try to control your competition that doesn't make it become a disaster.

The competition policy makes the market become healthier; this means it makes all the firms are more responsible of what they do. For APL logistics, working in UK this plan make APL feels carefully before APL needs to do something. For instance, if APL guarantees about the product quality that APL provides to customers, it must be exactly right of what company say. In addition, when APL would like to combine or buy others in UK, it must be under the supervising of the Government to prevent dominating a market by a company, in cases like this is APL. So it's very hard for APL if company desires to grow its company thought buying another company. So everything must be clear to avoid the misunderstanding of taking the handling of market.

(resources: Wikipedia[7/7/2013])

On top of that, there are a few other regulatory mechanisms that APL has to follow when conducting business in UK.

Health laws: as you can see, APL logistics has many mega ships, so when APL works in UK, these boats also release many carbon dioxin which will make the environment become polluted and cause many bad effects to the people who reside in UK. So to work in UK, those ships have to meet up with the standard of air pollution or use some inexperienced technologies to lessen the carbon dioxin.

Labor regulation: APL logistics is a large company so it is very need the big quantity of employees, to protect UK people, the united kingdom Government releases this law to protect the employees. APL must be treat employees fairly, the working hours or the holidays, and salary all the things must be clear and open public to avoid the misunderstanding and insufficient is responsibilities when some things unlucky happen.

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