Friday, February 8, 2019

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

Describe The Roles of Government In The Present moving in EnvironmentIn the present business environment presidential terms have the military unit to changeand make laws, having a major role and influence on the business environment.There are three levels of government federal official, separate and local.The federal government has power over such areas as company law, incometax, shell out etc. State government has power over pollution, price controls, statecourts etc. and local government has power over rates, building approvals andzoning. through with(predicate) zoning the local government can decide where businesses arelocated, or how many similar businesses should be built in a item area.The power of the government can have direct or corroboratory influences on thebusiness environment, encouraging or forcing businesses to comply. The federalgovernment has the great effect over the macroeconomic business environmentthrough the making of policies. The government has a nu mber of economicobjectives. They aim to have logical economic growth, low rates of inflation,a sound international trade situation and low unemployment. To meet 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 unavoidable to cut unemployment they would budget for a deficit somore money is injected and less money is taken from the economy by less taxesand high expenditure raising employment.Monetary policy can also push the level of economic activity. Itcontrols the availability of money by influencing the level of involvement rates.Lowering interest rates encourages people to spend and borrow magic spell higherinterest rates encourages people to save and not borrow. By lowering interest rates the government encourages spending thus increase the level of economicactivity.Income policies influence wage outcomes by negotiating with the unionsand the employers and putting arguments beforehand the industrial relations

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