Describe The Roles Of Government In The Present Business Environment :: essays research papers

Describe The Roles of Government In The Present Business EnvironmentIn the present traffic environment presidencys have the power to changeand make laws, having a major role and influence on the business environment.There are three take aims of government federal, state and local.The federal government has power over such areas as company law, incometax, trade etc. State government has power over pollution, outlay controls, statecourts etc. and local government has power over rates, building approvals andzoning. Through zoning the local government can decide where businesses arelocated, or how many similar businesses should be built in a particular area.The power of the government can have direct or indirect influences on thebusiness environment, encouraging or forcing businesses to comply. The federalgovernment has the greatest effect over the macroeconomic business environmentthrough the making of policies. The government has a number of economicobjectives. They aim to have co nsistent economic growth, low rates of inflation,a sound international trading situation and low unemployment. To happen upon theseobjectives the government must place policies such as fiscal, monetary, tradeand income policies.Fiscal policy is the deliberate action of the government to change itslevels of income and expenditure, through the annual budget. By budgeting for adeficit or surplus, the government will contract or expand the economy. e.g Ifthe government needed to cut unemployment they would budget for a deficit somore money is injected and less money is taken from the economy by less taxesand higher expenditure raising employment.Monetary policy can too raise the level of economic activity. Itcontrols the availability of money by influencing the level of interest rates.Lowering interest rates encourages people to spend and borrow while higherinterest rates encourages people to save and not borrow. By lowering interestrates the government encourages spending thus incre asing the level of economicactivity.Income policies influence wage outcomes by negotiating with the unionsand the employers and putting arguments before the industrial relations