Question

a current news article which shows the interrelationship between the business community and government (local, state or federal).. Cite your source. Four sentences should be adequate.

Answer 1

The government and the businesses are interrelated in the following ways -

• The businesses need the government to lay down the proper rules and regulations for the smooth conduct of the business. Unless a country or a state has the proper rules and relgulations in place, the atmosphere will be inconclusive and uncertain for the businesses to operate safely
• The government also has to make available the proper infrastructure in the country which will help in the profitability of the businesses. The government has to maintain proper roads, ensure there is proper law and order in place and other facilities are provided like electricity.
• It is also important that the government creates enough demand for the business to be profitable. This will include adequate government spending so that the poeple in the country have enough income to create an effective demand for the business and its products. This also involves a well structured tax policy, which will greatly influence the purchasing power of the citizens of the country and also the after tax income of the businesses.
• Businesses influence the government in a number of ways as well. This is by creation of jobs in the country, which reduces the rate of unemployment in the country. Sometimes because of th investment by businesses, the government also increases its investment and that increases the overall wellbeing of the people in the country.