The interest charges for products in the UK is high, like Tesco may has to pay Warburton’s before selling their products with their brands in their store.
These interest rates give Tesco to manage their products very well, but in India they can sell different range of products because India have fairly lower interest rates than England. Because of it Tesco need to be sure that the money they save goes to other parts of Tesco that could be slacking.The output of the workers in India is higher than people who live in England, because they have to make money because they are poor. You can make them work more hours for cheap than the workers in England. Tesco can use the workers in India to produce their products and then they can sell them in other countries. The inflation rate in India are higher than in the UK because they don’t have as strong economy as the UK.Economic growth is the increase of goods and services given in a community. The economic growth can affect how many products you can buy from Tesco.
If there is an increase in economic growth people will have more money to spend at Tesco, if this happens Tesco will have to change their prices so they can make more profit. The progress will also let the Tesco to invest more money into their stores in other countries. The increase in growth can also mean that Tesco will need more employee to deal with the new customers that they attract. Tesco can invest in new companies and try to buy more businesses to help Tesco grow their influence. The economic growth in the UK is very reliable apart from the decline that happened in 2007. This meant that Tesco did close down some locations to keep their profits up.
India do not have a high growth rate in recent years match to what they had ten years ago. The reason can be, India’s economy is start to steady itself so the growth will much more reliable. Not like the UK economy, India did not go through a decline in 2007 so Tesco did not have to change their prices to attract more people from India. Tesco still have to keep in mind that the majority of Indian population do not have as much money as people in the UK.
The stabilizing of the economy means that more companies like Tesco will invest in India. This can cause the loss of some customer because they will have more competitors in the Indian Market.