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

Describe The Roles of Government In The Present credit line EnvironmentIn the present business environment authoritiess have the indicator to changeand make laws, having a major role and influence on the business environment.There are three levels of government national, posit and local.The federal government has power over such(prenominal) areas as company law, incometax, conduct etc. State government has power over pollution, price controls, statecourts etc. and local government has power over rates, building approvals andzoning. by means of zoning the local government can decide where businesses arelocated, or how many similar businesses should be built in a finical area.The power of the government can have direct or collateral influences on thebusiness environment, encouraging or forcing businesses to comply. The federalgovernment has the superlative effect over the macroeconomic business environmentthrough the reservation of policies. The government has a number of ec onomicobjectives. They aim to have conformable economic growth, low rates of inflation,a sound international art 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 necessitate to cut unemployment they would budget for a deficit somore specie is injected and less money is taken from the economy by less taxesand high expenditure raising employment.Monetary policy can also rising slope the level of economic activity. Itcontrols the availability of money by influencing the level of post rates.Lowering interest rates encourages people to spend and borrow speckle higherinterest rates encourages people to save and not borrow. By lowering interestrates 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 ahead the industrial relations