The Role of Government
All governments in the western world want to create and environment in which businesses flourish. This is because businesses create riches for the whole nation and all the people who live there. The National government role
Government economic objectives include: •
Low unemployment, that is, as many workers in jobs as possible. •
Lower prices. Constantly rising prices is called inflation. •
Low inflation is a goal of government.
Economic growth. The objective is to produce more goods and services each year so that individuals have a higher standard of living. The government can change the way businesses work and impact the economy either by passing laws, or by changing its own spending or taxes. For example: •
Extra government spending or lower taxes can result in more call in the economy and lead to higher production and employment.
The local Government
Every area in the UK has a local council but their titles vary. All councils want their area to prosper and develop to tempt business to transfer and start up in their area. They also have legal power to take certain arrangements to benefit the local community. Local government gathers rates from firms and can use the law to block planning permission for new premises. The European Government
the European Union play a big part in influencing business activity today: •
through taxation and spending
through laws, directives and regulations
through encouraging business activity through subsidies and support •
By providing advice and support for business.
The EU also tries to ensure that all business compete fairly with each other and promotes rivalry laws to keep prices low for customers within the EU.
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