AFM131 Chapter Notes - Chapter 4: Maple Leaf Foods, Friedrich Hayek, Hydro One

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Chapter 4: the role of government in business. National policy: placed high tariffs on imports from us to protect canadian manufacturing industry which had higher costs: didn"t want to be absorbed into the us. Railway to connect the country (encourage east to west trade) Mixed economy: participation by govt and business to drive a strong economy govt built railway to support industry and economy. 6 categories of government activities that affect business: crown corporations, laws and regulations, taxation and financial policies, government expenditures, purchasing policies, services, crown corporations: companies owned by the federal or provincial governments. Provide services that were not being offered by businesses: 1930, air canada, airline industry came into being. Bail out a major industry (govt supporting an industry: national railway, government supported railroad development by implementing high tariffs. Provide special services not otherwise available: bank of canada.