• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Why is the government involved in the regulation of business activity ?

Extracts from this document...


BUSINESS STUDIES Why is the government involved in the regulation of business activity ? Governments everywhere is the world play an important part in the economy of their countries. How big the role actually is the government is playing is varying a lot from country to country. In North Korea, the state is the only entrepreneur, everything is dictated by the state/ communist party while people in the USA enjoy a lot more freedom to build up their own business. Which system is the best is a question of interpretation and personal political views, but it is still possible to analyse why governments get involved in business activity. First of all governments get involved for political motives. ...read more.


In former communist USSR for example, where everything was run by the state, the state had a lot of power and therefore the people were afraid of it. This does not occur in liberal countries with liberal economies as the power is hold by big companies and businesses. By privatising nationalised businesses, the power is lost again and the role of the government in the economy shrinks. Although political reasons are very important, there are some reasons which are purely economical. As governments are there to run the country efficiently and are there to improve the national standard of living, their major concern is employment. Employment is the source to national wealth and economic strengths. The more people are unemployment, the more people have to live of the social welfare system and so the more expenses the state has which will automatically lead to an increase in tax for the working population, employees and employers. ...read more.


Recently governments have got new tasks concerning businesses and industry. The task of the protection of the environment. As people got concerned about the effects of industry on the environment through pollution, governments passed new laws to set a guideline and limits mainly for the secondary sector. These guidelines and laws are there to protect the environment and have a big impact on certain businesses. As heavy polluting industries were unable to meet the guidelines set by the state, they too often moved out of that country into others where the law is not so strict about the environment, especially third world less developed ones. As it is made clear here, governments are greatly involved in the economy for many reason but their job is mainly keeping employment high without harming the environment concerned. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Politics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Politics essays

  1. Nationalism as applied to business

    the support of poor low-caste and dalit Hindus in the northern, and most populated states of India like Uttar Pradesh and Bihar. Almost every Indian state has a regional party devoted solely to the culture of the native people. Unlike the Akali Dal and the AGP, these mostly cannot be

  2. This assignment identifies and discusses the major social and political trends expected to affect ...

    (Friedman 1999). Because there are sites of counterveiling power in South Africa this is not necessarily a major cause of concern. It is important that counterveiling power present inside and outside the government system. Meaning that inside the legislature there should be political groups to which those who govern are obligated to pay attention.

  1. Description of Citizenship Activity Describe how you participated in a school or community based ...

    Also this group made contact with the RSPCA, by using a telephonic communicator, then a representative from the RSPCA came in and talked to people on the stall, about how the RSPCA works. I personally was in the research team, and we really did not plan ahead, members from the

  2. citizenship data task

    of us would be in charge of one group, which would mean that we would be able to give individual attention to each child. We made sure that we did not touch the pupils, or get too close to them and make them feel intimidated, as our research into child rights (see Reference List)

  1. When is government interference with an individual's freedom justified?

    his irrational compulsion and allowing him to make a genuinely free choice in the future. Even keen supporters of negative freedom recognise that in a modern day society there has to be at least some level of government interference with the freedom of an individual in order to preserve the freedom of the community at whole.

  2. The United States Government argues that without proper regulation of encryption, national security is ...

    Information sent between hackers, terrorists, and various underground illegal organizations that cannot be decrypted by U.S. intelligence agencies threaten our national security. Under multiple precedents the United States government has made a firm argument in favor of regulating Cryptography. Organized crime involving cryptography has continually stifled U.S.

  1. International Business

    The country's monarch is not only Queen of New Zealand, but Queen of the United Kingdom as well, and she holds political power and maintains the legitimacy and establishment of the country. She is represented in the country by an appointed Governor General.

  2. The Mexican Economy

    Other rebel leaders, particularly Emiliano Zapata and Francisco (Pancho) Villa, completely refused to submit to presidential authority. Victoriano Huerta, head of the Madero army, conspired with the rebel leaders and in 1913 seized control of Mexico City. New armed revolts under Zapata, Villa, and Venustiano Carranza began, and Huerta resigned in 1914.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work