Government
What is government?
The government is an important consumer, producer, employer, law maker and regulator who manages an economy for citizens and businesses
How do governments use trade policies to encourage business activity?
Reduced trade policies mean businesses pay less
What is regulation and why is it necessary?
Government rules that control business activities and are used to ensure safety, fairness, and environmental protection
Regulations
Rules or laws set by the government that control how businesses operate
Name two responsibilities of the government
Protection and welfare of citizens, job security and severance benefits for workers, protection for environment, regulation of business activity, security of state
What are five methods governments use to maintain a safe environment for investors?
Interest Rates, Tax Incentives, Contracting, Grants, Subsidies, Loans and Disbursements and Stability and Transparency
What is deregulation and why is it sometimes implemented?
This is the removal of unnecessary rules to reduce bureaucracy and help businesses grow and compete more effectively
Contract
A written or verbal agreement between two or more parties that creates a legal obligation for each party to perform certain acts
How can policies affect a business?
Who can subsidies be paid to?
Producers
What are government guidelines for start-ups and why are they necessary?
Rules and procedures set by governments that new businesses must follow from the start to operate legally. They are needed to keep consumers safe and to ensure proper treatment of employees and the environment
Government
The government is an important consumer, producer, employer, law maker and regulator who manages an economy for citizens and businesses.
What is a crucial role of the government?
To raise public revenue through taxation providing goods and services such as healthcare, education, policing and infrastructure
Through their legislation, what do governments do?
Provide protection, incentives and opportunities for businesses to establish themselves and thrive
If a business doesn’t comply with the governments laws what can be some of the consequences?
Fines and penalties, clean up costs, loss of license or closure, reputational damage
Disbursement
The payment of money from a fund
Name an agency that assists in the responsibilities of the government
State of Security - diplomacy, national defense, internal security, employment agency, welfare agency
What does TICPI stand for?
Transparency International's Corruption Perception Index
Why must governments strike a balance between regulating businesses and avoiding excessive bureaucracy?
Governments must balance regulation and bureaucracy to protect people and the environment without making it too difficult or expensive for businesses to operate and grow
Bureaucracy
Complex administrative procedures or rules that can slow down business operations