"If the organization has less market power, then demand and supply forces take hold of thebigger picture by affecting the entire process of determination of price and quantity to beexchanged.Any change in factors that affect the demand and supply affects the equilibrium quantity andprice as well as market share of the organization. We can see the effects in the followingdiagram: L as output. Source:(https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rj a&uact=8&ved=0ahUKEwj8suaJ0pbTAhWIsI8KHYcrCgAQjRwIBw&url=http%3A%2F%2 Fygraph.com%2Fchart%2F2225&psig=AFQjCNGE04ohdWAB_2ZKIDJf2hxREQ7C- g&ust=1491801891645614)Any simultaneous increase in supply and demand leads to less effect on price and more onthe quantity.3.3 Judge how the business and cultural environments shape the behaviour of a selectedorganisation.Cultural environment refers to the beliefs and values that an organization follows as a baseand the changes made through the external environment of the business. Every organizationin the market whether it has power or not needs to behave in a certain way. Because thesebehaviour affects the market image of the firm and affects the functioning and stand in themarket.This is because the cultural environment affects both the internal and externalenvironment of the business. So, the organization should maintain their decorum and ways asto maintain its share and stand.Business Environment of any business consists of the political conditions of the economy, thepolitical scenario in the country, the technological changes that take place.For example, let’s consider the working of Marks and Spencer’s(M&S). It is one of theleading retailer organizations in the world and serves the maximum customers in the UKmarket. It has its operation in clothing sector as well as in food retail. The politicalenvironment of UK faces very less instability giving the company full potential to grow andflourish. The company can also trade freely as there are provisions for free trade in thelegislation. There is also advent of technological changes in the market. The company hasentered online business and is doing well in that.It also has considered the cultural beliefs of the country it trades in to make its businesssmoother and that’s why it is one of the leading companies now. The country it operates in would have varied cultures and thus makes it necessary to understand different cultures it hasto work in.4.1Discuss the significance of international trade to UK business organisations.International trade refers to the process by which manufacturers are able to sell their goodseven outside the geographical borders they operate in and the consumers are givenopportunity to have more than that option of domestic produce.So, it helps the organizationor company to expand its horizon and work platform across the globe rather than beingconfined to a specific geographical border. This also helps the overall economy to grow andflourish. As more exports means more inflow of foreign exchange to the country. Thisincreases the overall revenue of the country and helps in its growth. As far as organizationsare concerned, they need to reduce their cost of production and would like to extractresources from the sources that are cheapest source for them. As now trade takes place acrossborders it becomes easy to extract cheap sources. This facilitates the organizations to engagein trade across borders and build stronger relationships in foreign countries. For the UKmarket, we can say that as international trade helps the company to enhance the businessopportunities available to them as well chance to increase the revenue of the company andenhance their image in the market. As through international trade it becomes easier to acquirecheap materials from outside sources, this helps the companies to decrease its productioncosts. They need to maintain the standard and quality of their products globally. Internationaltrade not only enhances the revenue structure of the business but also creates a brand imagefor the company across the globe. UK market has been able to connect with more than 28countries with trade alone. (Hill, 2008)4.2 Analyse the impact of global factors on UK business organisations. "