step 1.

a). LUSH is a cosmetics retailer headquartered in Poole, Dorest, UK. The hand make a range of 100% vegetarian, ethical, free from animal tested products ranging from body, face, hair, make-up, perfume to bath, shower, soaps, cleansers, lotions, hand and foot care, massages, shaving, tints, deodorants, and many more.

b). Some factors that may impact the supply of their goods could be if some of the ingredients used to make these particular products such as lavender, were out of season or effected by a natural disaster they would not be able to make this product therefore it would effect the supply. They might decide to compromise and create a new product instead of the original and it may not be popular therefore individuals may not buy it, effecting the demand.

c). LUSH is 100% vegetarian, handmade, bought ethically and fights animal testing. People are more likely to go to this store because of this, most people like to know they are doing the right thing when they are buying products and making sure they are helping the environment. Instant increase in demand.

d). LUSH's goods would not be counted towards GDP because you cannot really do anything with them, if there was baking soda in a bath bomb, the bath bomb would be the baking soda's GDP but you cannot do anything with a bath bomb once it's made, you cannot use LUSH products in other products like you would honey or strawberries.

e). If business did not sell to China, there would be a massive drop in the economy. China's buyers support most companies buy purchasing their products in mass, if companies stopped selling to overseas countries they would stop making this huge profit therefore there would be a significant decrease in the supply, not being able to purchase ingredients for their products, and an increase in the demand as there would be fewer products.

step 2.

This article is referring to the fact that China's economy dramatically dropped, maybe because their leading suppliers had problem with the manufacturing of their products. If a company if not able to make a certain object for any given reason, there is a domino effect in the market. The primary consumers will no longer be able to purchase this product, nor the secondary or tertiary, effecting the whole countries economy, which is what has most likely what has happened to China's market.

" When China sneezes Australia gets a cold"

China is Australia's leading consumer for its products, if China is no longer able to buy a certain product from Australia, it kick starts that domino effect then before you know it there is a massive drop in the country's market.

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