In the present day environment of business, the government represents a very powerful institution. The growth of economy in any country depends upon the various policies and guidelines announced by the government at periodical intervals. The government-business relation can be conceived in a number of ways.
Initially while thinking about the business of government having reference to the economic role of government, sometimes the social and other non economic tasks and responsibilities of the government can be referred;
Secondly, when it comes to “the governance of business” it may mean ownership, control and management of business concerns. It can also have reference to the board of directors, role of nominee directors, managerial culture of private trusts, the interface between ministries and enterprise executives etc.,
Thirdly, while thinking about the government for business, the positive and constructive role of government can be also thought of namely central, state and local towards promoting small business or in the protection of indigenous business and industry or in the planning of new business activity and so on.
Fourthly, when it comes to the government against business, it has reference to the traditional conflict between government and private sector. For example, it is always felt that in terms of its regulatory role, the government imposes control over big business and thereby tends to restrict its industrial activity. In the same manner, the national government may at times tend to curb the growth of multinational business and it may restrict the inflow of foreign capital and foreign technology, or it may enact anti damping laws.
Lastly, the relationship between government and business can be properly evaluated and it is not necessary that the relation is only of conflict and confrontation; it may be of cooperation and coordination as well. There may be a strong civic sense in both government officials and businessmen and an environment of mutual trust and thereby confidence may be created.
Under such circumstances, the government-business relationship is very complex and in order to understand the above relationship, theory, history, philosophy and practice should be analyzed in a systematic manner.
In order to understand the relationship between the government and business, the information about the following should be understood in a thorough manner:
The theory of government intervention;
The evolution of social movements shaping the philosophy of government’s business economic activity should be traced accordingly;
The various types of the role of government in relation to business should be known and
The business-government relationship in theory as well as in practice with reference to both traditional view and modern view should be better known.
This article has been compiled by Classof1, a leading online Homework-Help provider.
For assistance with your Economics Homework Help you can visit classof1.com
Classof1.com is open 24/7. You can call us at 1-877-252-7763 or drop an email firstname.lastname@example.org