Contemporary Management Issues Essay Example | Topics and Well Written Essays - 750 words

Contemporary Management Issues - Essay Example This tendency is projected to aggravate over the next few years due to an expected mass retirement of most of Britain’s working class, leaving a small number in the job market. In decades to come, the number of people in the employment sector will be less than that of retirees. This interprets that the number of citizens of working age is set to be inversely comparative to that of retirees. This mass retirement, will result in limited workforce in both the private, and public sectors. The expected gap in the job market will negatively affect the economy, as the demand for commodities will be higher than the supply leading to anticipated inflation. The health sector will also feel the effect as most of the pensioners will be in need of more healthcare and social services. With the dwindling savings of these retirees and the limited savings of the few in the job market, the government will be forced to find alternative ways to fund the health and pension systems. As a result, ma ny people are inclined towards accumulating savings during their active years and dissimulating the same savings after retirement. This could lead to people selling their assets rather than buying, therefore, reducing asset value and increasing interest rates. In summary, the current demographical trend in the United Kingdom could lead to inflation, a reduction in personal savings, increased interest rates, capital accumulation and an overall strain in government expenditure. An analysis of the demographic changes in the United Kingdom shows that birth-rates and fertility have significantly reduced as compared to the 1970s. On the other hand, death rates have been consistently lower than live births. This has ensured a considerable population increase, a shift from the 1990s when British women were not giving birth. Although this is the trend now, the retirees continue to pose a threat to the British economy. With the ever increasing number of retirees, coupled with the upcoming gen eration and a small working group, the United Kingdom is headed for tough economic times. All these, will result, in a decline in economic growth in Britain, if corrective measures are not taken. Impact of the European Union on the global economy The world today has become progressively more interdependent in as far as economic growth is concerned. The European Union is at the fore front in promoting global economic systems. Member states to the European Union enjoy less restrictive trading laws and fair competition due to the increased elimination of trade barriers. The European Union is a global powerhouse in trade, which has been able to contend with the United States. As the world’s largest exporter, the European Union has continued to dominate the global economy. It exports high quality, first-class rated manufactured products. These include motor vehicles, chemicals and pharmaceuticals to nations outside this union. The United States and China are the leading destinatio ns for European Union’s exports, mainly machinery and transport gear. The European Union is the second largest importer after the United States and gets most of its products from member states. With the adoption of the euro as the medium of exchange, lifting of tariffs and the free movement of people within its quarters, trade has flourished. Due to this power held by the European union, other countries are more often than not, forced to give in to its demands. The European Uni