BUSINESS ENVIRONMENT

The Government and the Development Of a Successful Business Environment

Table of Contents

A successful business environment3

The model that will be used to answer this question3

Main parts of government that are concerned with business environment5

The governmnet's role in comparison to the role of the private sector7

The main players in the creation of this environment8

The nature of the government's role10

Broader considerations for the government's influence on the business environment12

References13

The Government and the Development Of a Successful Business Environment

A successful business environment

Business environment is a mixture of legal, policy, regulatory, and institutional conditions which direct business performance. Any company's business environment, performance, or even survival, depends on governmental policies that affect the competitive moves of foreign producers. Likewise, governmental measures may limit owner's ability to sell abroad, such as by prohibiting the export of certain products to certain countries, or by making it difficult for you to buy what you need from foreign suppliers. (Ansoff 2007 15-20)

A government can help the development of a successful Business environment with the help of various policies. The trade of goods and services is a major means of linking countries economically and that more linkages improve global efficiency. However, the restrictions illustrated in the opening case are not atypical. In principle, no country allows an unregulated flow of goods and services across its borders. Rather, governments routinely influence the flow of imports and exports. Also, governments directly or indirectly subsidize domestic industries to help them engage foreign producers at home or challenge them abroad.

The model that will be used to answer this question

This paper begins by reviewing the economic and noneconomic rationales for trade protectionism, followed by an explanation of the major forms of trade controls and their effects on companies' operating decisions. This paper discusses how the government can help the development of a successful Business environment.

Governments generate the structures and regulations in which businesses can contest fruitfully against each other. Occasionally, governments keep changing these structures and regulations making businesses to adjust the way they function. Governments help businesses in many ways to create a successful business environment. Government's business environment development measures may consist of:

Widening private-public dialogue procedures

Facilitating better access to finance

Developing access to market information

Developing administration and labour laws

Developing registers, administration and land titles

Developing administration and tax policies

Developing the general quality of regulatory governance

Abridging business licensing procedures and registration

Governmental intervention in trade may be classified as either economic or noneconomic, as shown in Table1. Let's begin by profiling leading economic rationales.

Table-1: Government help in the development of a successful business environment

ECONOMIC HELP

NONECONOMIC HELP

Prevent unemployment

Maintain essential industries

Protect infant industries

Deal with unfriendly countries

Promote industrialisation

Maintain or extend spheres of influence

Improve position compared to other countries

Preserve national identity

[The Business Environment]

Main parts of government that are concerned with business environment

Persistent unemployment pushes many groups to call for protectionism. However, evidence suggests that efforts to reduce unemployment through import restrictions are usually ineffective. Unemployment, in and of itself, is better dealt with through fiscal and monetary ...