BU111 Chapter 1: Chapter 1B - PEST.docx

• School: WLU
• Department: Business
• Course: BU111
• Professor: Laura Reid

Document Summary

Government regulates certain industries wants to ensure that there is an adequate amount of competition, but prevents too much competition: taxes. The government uses taxes to subsidize things such as education and health care. Use taxes & the way they tax us to create incentives/disincentives to do certain things: trade agreements or conditions. When fta (free trade agreement) was first signed, businesses thought american companies will take over market but canadian companies worked hard & overpowered the american market. Open up opportunities open up new markets. Can also be a threat due to competition: political system. At one extreme, there is capitalism: the government is laissez faire allows private ownership of the fop and encourages entrepreneurship by offering profits as an incentive. At the other extreme, there is communism: the government controls everything. Companies prefer capitalist approach more flexibility and room to pursue opportunities: political stability.