Essay/Term paper: Describe the roles of government in the present business envi
Essay, term paper, research paper: Business
Business Studies - Essay
Q: Describe the roles of government in the present business environment.
In the present business environment governments have the power to
change and make laws, having a major role and influence on the business
environment. There are three levels of government; federal, state and local.
The federal government has power over such areas as; company
law, income tax, trade etc. State government has power over pollution,
price controls, state courts etc. and local government has power over rates,
building approvals and zoning. Through zoning the local government can
decide where businesses are located, or how many similar businesses
should be built in a particular area. The power of the government can have
direct or indirect influences on the business environment, encouraging or
forcing businesses to comply. The federal government has the greatest
effect over the macroeconomic business environment through the making
of policies. The government has a number of economic objectives. They
aim to have consistent economic growth, low rates of inflation, a sound
international trading situation and low unemployment. To meet these
objectives the government must place policies such as fiscal, monetary,
trade and income policies.
Fiscal policy is the deliberate action of the government to change its
levels of income and expenditure, through the annual budget. By
budgeting for a deficit or surplus, the government will contract or expand
the economy. e.g If the government needed to cut unemployment they
would budget for a deficit so more money is injected and less money is
taken from the economy by less taxes and higher expenditure raising
Monetary policy can also raise the level of economic activity. It
controls the availability of money by influencing the level of interest rates.
Lowering interest rates encourages people to spend and borrow while
higher interest rates encourages people to save and not borrow. By
lowering interest rates the government encourages spending thus
increasing the level of economic activity.
Income policies influence wage outcomes by negotiating with the
unions and the employers and putting arguments before the industrial
relations commission. Governments can restrain real wages and cause
unemployment levels to fall.
Trade policies influence the exchange rate and determines the levels
of production for Australian industries. Trade policies include tariffs,
quotas, embargoes and subsidies, to protect businesses from foreign
competition. Trade policies help the economy by encouraging Australians
to buy Australian products.
The federal governments role in the present business environment is
to promote economic growth, keep unemployment at a minimum, and
protect businesses from foreign competition, by creating policies.
Other sample model essays:
In accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the orga...
By: Kris Hudson
Each day, the statistics on domestic violence get more and more horrifying. A woman is beaten every 15 second...
"DRINKING AND DRIVING OFFENCES"
My essay is on "Drinking and Driving Offences". I...
This being the day of the great downsize many managers are hurrying to make the cut's and in doing so closely examining their Employee-Assistance Programs for effectiveness. What are they? ...
Eastern Airlines Facing Bankruptcy
In 1986, Eastern Airlines was in desparate trouble. The
fourth quarter of 1985 had shown a $67.4 million loss, ...
ECONOMIC AND MONETARY UNION OF EUROPE
The main reason for creating a European Market was the growing international competitiveness. In the mid of the eighties the European countries recogniz...
Economic Development in Zimbabwe
The country of Zimbabwe is one of the most economically developed on the African continent1. A fairly young political entity, Zimbabwe has only enjoyed recogniz...
Economic Development in Zimbabwe
The country of Zimbabwe is one of the most economically developed on the African continent . A fairly young political entity,
Zimbabwe has only enjoyed recogniz...
The new economic policy of the united states should
include cutting taxes, reducing governmental waste, and
balance the budget by having a smal...
What role do governments have in modern mixed economies such as Australia? Using appropriate indicators (macro economic aggregates) outline the present state of the economy. In what wa...