The Impact of Government Policies & World Order on Business
8 Pages Posted: 28 May 2008 Last revised: 11 Aug 2013
Date Written: April 7, 2009
Once upon a time economists thought government policies has no impact on business. But after the great depression Mr. Keynes has proved that government policies have a direct impact on business. For example if government impose more taxes & duties on a particular sector than profit margin of this sector will go down even businessmen can lose their interest to this sector and they can give up this business. Similarly if government give some taxation / duty facilities for any particular sector then businessmen will fell encourage investing in this sector as a result this sector will grow up.
Not only this, if government ensure availability of loan with a reasonable interest though the monetary policy of the central bank than investment will go up and vice versa. In this paper we will see are their any other impacts of government policy on business.
Similarly current world order has a tremendous impact on a country's business. It may be legal or illegal. For example USA manipulates UN to impose sections on Iraq illegally. But this section destroyed Iraqi business environment. They lost billions of dollars business even their deposited money in the USA & its alliance. Now USA is the world leader as a result there is no country in the world that can do successful international business without having a good relations with USA. In this case Iran may be another good example. USA is trying to impose section on Iran also. Their propaganda may be wrong like the propagandas against Iraqi Saddam Hosen government. There is no balance of power in the world now. By taking this chance USA in destroying huge resources of their competitors countries or the countries are not giving them their expected illegal salute.
The Impact of Government Policy on Business can be explaining from two points of views. Such as: i. From Political point of view. ii. From Technical point of view. i. If we describe the impact of government policies on business from political pint of views then we will have to think about inland political parties (ideologies) as well as world politics. Because international business never depends upon any particular government's policy it depends on the local as well as world order. We will discuss it elaborately later. ii. If we describe the mater from technical points of views then we will have to consider the following things: - taxation - subsidies - interest rates - exchange rates - public-private partnerships
All these things are related to the impact of government policy on business. We will discuss it elaborately in the following discussion.
Keywords: Influence of Government Policies on Business, World Order and Business Environment
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