In conclusion factors such as the UK’s current GDP, increased employment rate and high
inflation, have made it more difficult for firms like Rolls-Royce to prosper in this economy,
which is growing at a slow rate after the national lockdown caused by the COVID-19
pandemic which slowed down trade, and the implication of current affairs such as Brexit,
which erected trade barriers between the UK and the EU. However, the firm can withstand
these challenges by obtaining financial aid services, offered by the government, for
exporting, find ways to increase productivity to reduce costs and even take advantage of
factors such as high inflation by increasing its prices, because it operates in an oligopolistic
market and is therefore unlikely to lose customers. However, these strategies are temporary
solutions to combating the implications of operating in the UK, and if said implications
persist Rolls-Royce may need to consider moving operations elsewhere.
Reference List
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available at https://www.aerotime.aero/articles/32417-who-are-the-world-s-largest-
aircraft-engine-manufacturers [Accessed: 13th of January 2023]
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at https://www.bbc.com/news/business-56357312 [Accessed: 14th of January 2023]
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war-ukraine-impact-uk-and-global-trade [Accessed: 14th of January 2023]
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cons [Accessed: 13th of January 2023]
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fiscal-policy-would-cause-a-decline-in-aggregate-demand-seen-in-the-graph-below-explain-
the-chain-of-how-ad-shifts-to-the-left-b-what-type-of-monetary-policy-would-cause-a-
decline.html [Accessed: 14th of January 2023]
8
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