Chapter 4 Government and Economic Influences on business.
Impacts Of Business Activity In our society. Positive A business can produce useful services for people to use. Negative Profit factor of a business can lead to cutting costs and producing a cheaper quality of products. THIS TABLE SHOWS THE POSITIVE AND NEGATIVE IMPACTS OF A BUSINESS IN A SOCIETY. Creates jobs and provides income to the population Businesses need to pay tax to the government, this money can be used to improve public services. Factories and other production methods can lead to pollution. Advertising falsely or giving a misleading image inside consumer s minds leads to high sales however causes other problems amongst buyers. Depression, Unhappiness and side effects. THIS WILL HELP GIVE US IDEAS AND THOUGHTS AS TO WHY GOVERNMENTS NEED TO TAKE ACTIONS TO CONTROL BUSINESSES
Why the government takes control? Inflation (is the increase of the average price of products sold by businesses) Their objective is to keep this at its lowest. Unemployment (is the result of many people who are qualified and capable of working cannot find a job) The government provides jobs for everyone. Economic Growth ( is when a country s GDP increases, this means the production of goods and services is better than the year before. This leads to more profits in the country.
Economic Growth. GROWTH BOOM GROWTH RECESSION SLUMP SLUMP BOOM 2007 2008 2009 2010 THE GRAPH ON THE LEFT SHOWS THE ECONOMIC GROWTH OF A COUNTRY OVER 4 YEARS. AS YOU CAN SEE THERE ARE TIMES WHEN THE ECONOMY FALLS, AND YEARS WHEN THERE IS NO GROWTH. ACHIEVING HIGH ECONOMIC GROWTH CAN TAKE YEARS. THE GOVERNMENT NEEDS TO CONTROL BUSINESS ACTIVITY SO THAT THE COUNTRY DOES NOT RUN INTO LOSS, A SLUMP OR A RECESSION. WITH SUPPORT AND GOVERNMENT CONTROL EVENTUALLY THE GDP GOES TO A BOOM AND PROVIDES LARGE PROFIT.
Exports and Imports. Exports are goods and services that are sold from one country to another business in another country. Imports are goods bought from other countries. There must be purchased with foreign currency so these lead to money flowing out of one country. The government s aim is to achieve equality or balance between those over a period of time. This is know as balance of payments.
Taxes Fiscal policy (is any change made by the government over taxes rates or the public sector spending) Direct taxes (are paid directly from incomes-for example, income tax or profit tax) Indirect taxes (are added to the prices of goods)
Government can help a business in many ways they encourage business development in poorer areas of the country (this is known as regional assistance) they encourage businesses to export their goods and services they encourage growth as much as possible so that more jobs are available for the residents and more income for the company
Show Business In Singapore SHOW BUSINESS AND DRAMA PRODUCTIONS ARE ONE OF MANY TOURIST ATTRACTIONS HERE. THIS BUSINESS IS IN THE SERVICE SECTOR AND PROVIDES ENTERTAINMENT FOR ALL AGES. EACH DAY THERE ARE OVER 3 SHOWS PUT UP IN THE ESPLANADE ALONE. HAVING MANY STAGES AND AUDITORIUMS THE GOVERNMENT MAKES A LOT OF MONEY THROUGH SHOW BUSINESS AND ENTERTAINMENT. RECENTLY THEY HAVE ALSO STARTED TO GET COMPANIES INVOLVED WITH CATERING, ORGANIZING AND EVEN SPONSORING EVENTS RELATED TO ENTERTAINMENT. THIS WAY THEY NOT ONLY EXPAND THE SHOW BUSINESS BUT ALSO HELP COMPANIES; SMALL AND LARGE WITH FINANCES AND CLIENTS. APART FROM SHOWS, SINGAPORE ALSO HAS A LOT OF STREET ENTERTAINMENT WHICH IS HOSTED BY TALENTED PEOPLE COMING FROM ALL OVER THE WORLD.WITH THIS EASY YET WELL CONDUCTED AND ORGANIZED BUSINESS THE SINGAPORE GOVERNMENT HAVE EXPANDED THEIR TOURIST INDUSTRY AND LEFT A REMARKABLE EFFECT ON ALL TOURISTS THAT COME HERE FOR SHOWS, DANCES, MUSIC AND DRAMA PRODUCTIONS.