Question

1. In your own words, explain how the government can play the role of guardian of business in the global context (Pearson text) 2. Briefly outline why Govt. subsidies may be considered controversial. Reflection requirements:

You will write a 1 - Page double spaced response to an opinion/reflection question please type it do not write on paper

Answer 1

(1)

In reality, the private sector is the chief economic power in the world, but it requires government regulation. The position of the U.S. government in commerce is as old as the country itself; the Constitution grants the government the right to control any trade. Although the position of the government has increased over time , the business sector still enjoys tremendous independence. There are many forms the government exercises its power.

Create and Work Permit — Many companies ought to apply to work with a state government. Corporations require a warrant, and certain types of organization, such as limited liability corporations or associations, requires certain forms of identification. The purpose of a registry is generally to determine the legal responsibility of the company's shareholders. It limits their risk to how much they have invested in that specific organization. Registration also allows the government to monitor businesses to perform their other business-world functions.

Creating and executing arrangements — Organizations negotiating with other firms. Such arrangements may be complicated, like mergers, or they can be as easy as a warranty for ordered products. These contracts are enforced by the Government. Companies carry each other to trial much as citizens do. An informal arrangement may be a contract but usually only a signed document may be proven. When one entity falls or continues to meet its duty under a deal, a company must resort to the compliance law framework.

Customer health and safety — The role of government in industry involves protecting the customer or the company. When a company refuses to respect the promise, the customer has legitimate redress. Similarly, the courts can keep the retailer or the supplier liable when a substance causes injury to an person. Labeling is another condition placed on advertisers by the State. Of starters, certain products have to display nutritional information on the box. Over decades the U.S. has made strides on consumer protection. Market movement, though, also needs major improvement to defend the public.

Workplace Equality and Protections — A number of state and federal governments are trying to protect workplace privileges. For example, the Occupational Health and Safety Administration is an entity under the Ministry of Labor. The aim is to maintain a secure and pleasant work climate. The Equal Opportunity Commission prevents discrimination against employees.

Environmental Regulations and Security — If a commercial activity impacts a third entity – other than the marketer and consumer – the impact is considered a "externality." Also, the ecosystem is the third party. Thus, control of industry and therefore protecting the public from environmental externalities is the responsibility of the government.

Revenue and taxation — Governments at all levels are tax companies, and the resulting revenue is a significant part of government budgets. Within the company level any money is paid, and treated as gross profits as levied as dividends. It is in no way unfair, because it divides the tax burden between the corporation and the individual and encourages for fair taxation by the government.

Consumer Rights and Security — Policy forces businesses to openly report financial reports, thereby securing investor interests and encouraging more investment. In fact, that is achieved by registering with the Stock and Exchange Committee.

(2)

Many suggested a year ago that the US-China trade war was about technology rather than competition, and about competing economic governance and technical growth models — China's state-driven industrial strategy vs the US's market-driven private entrepreneurialism. Truth be sure, international exchange talks have now specifically frozen around this split. A big source of controversy is the State-owned company (SOE) incentives from China in selected high-tech sectors. European countries have often pursued this strategy with distinctly unimpressive results , particularly in France. The most prominent (and rare) successful tale, the European cross - institutional group Airbus, became involved in decades-long World Trade Organization ( WTO) battles about "illegal government subsidies" with the US-owned Boeing.