Question

Please assist with the following question:

Choose any topic you would like to discuss about the relationship between Business & Government. Find an article or video to support your topic and be sure to provide a link to the article or video.

***Please note: this discussion is about the relationship between Business and Government NOT just taking a personal political stance. Think along the lines of how Business impacts Government and/or how Government impacts Business***

Answer 1

Relationship between Business and Government.

Topic: Relation in terms of Economy.

In every country business organizations and governments are interlinked and interdependent on one another. In the current global economy, Businessmen’s and entrepreneurs are considered to be the driving forces of the economy. Government in both the planned and the market economy holds the control of shaping the business activities in a country. In order to maintain a steady growth in the country’s economy, the government must try and have to provide the business organizations an environment which is suitable to their functioning.

Also, the business organizations are under obligation to maintain peace and order, to follow the laws of government regarding carrying out the business. Both business organizations and government work hand in hand in order to achieve their desired results. Both business organizations and government have impact on each other and even influences one another.

The goal of every business organization is to have/earn more and more profits, on the other hand the goal of every government is to maintain stability and steadiness in the economy. Functioning and area of working of both the business and government are different both are dependent on each other.

The business organizations and government both, tries to influence each other for various matters. For the welfare of the economy and the nation altogether, what is required is a balance between the two forces directly affecting the economy, that is business organizations and government.

How Business influences the Government-

Business organizations always tries to overpower the government and to force the government to act in certain ways that would benefit their business. But the road for this has to purely legal and legitimate.

Following are the few ways as to how Business organizations influences Government: -

1. Lobbying- Political leaders and heads of corporations, somehow comes under the same social class. And have their personal links with each other that are built by years of working together for work related matters. More better the links between the business and the government, more it becomes beneficial for the economy, as they take decisions keeping in mind the needs of both the business organizations and the need of growing economy.

2. Trade Unions- Business organizations influence government by forming trade unions and chamber of commerce. These are associations of business organization having a common interest. These associations works towards the welfare of the business organizations and reports issues on their behalf to government bodies.

3. Large investment- Business organizations making large investments in business can directly affect the governmental policies. And this in turn will lead to indirect effect on the economy.

How Government influences Business-

Government being the one responsible for the economic growth of a country, maintaining its stability and steadiness, however, influences the business organizations while doing so.

1. Rules and Regulations- The Government is supposed and is considered to be the one shaping the business practices both directly and indirectly, by implementing rules and regulations, making policies regarding businesses.

2. Tax Codes- Government influences the businesses by implement and changing the tax codes from time to time which affects the economy of a country. Government can however, even give tax incentives to business having an eco-friendly waste management system.

3. Less developed region- Government also provides for incentives either in way of tax incentives or otherwise, to business organization that have setup their businesses in less developed regions of the country. This is to encourage more businessmen’s to take up such decision as it will benefit both the government (nation), as businesses in such regions will help them in developing and also to business by having incentives.

LINK- https://www.iedunote.com/government-business-relationship#:~:text=Government%20and%20business%20institutions%20in%20a%20country%20in,of%20shaping%20the%20business%20activates%20of%20a%20country.

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