BEGUM ROKEYA UNIVERSITY,RANGPUR

1. Introduction
Government action which affects the
operations of a company or business.
These actions may be local, regional,
national or international level. Business
owners and managers pay close attention
to the political environment to gauge how
environment actions will affect their
company.

2. Political Institutions
LEGISLATUR EXECUTIVE JUDICIARY

3. Responsibilities
Of Business
Towards
Government
To obey laws.
Payment of taxes.
Social responsibility.
Providing inputs to the government.
Government contracts.
Government service.
Active participation in politics.
Avoid restrictive trade practice,
Financial disclose.
Avoid corruption.

4. Responsibilities
Of Government
Toward
Business
Establishment and enforcement of law.
Maintenance of order.
Provision of a system of money and credit.
Provision of information.
To assist small scale industry.
Transfer of technology.
Protection from foreign competition.
Licensing and inspection.

5. Government
Intervention
In The
Market
The government tries to combat
market inequities through
regulation, taxation, and
subsides.
Government may also intervene
in markets to promote general
economic fairness.

6. Main
reasons for
government
intervention
 To correct market failure .
 Proper distribution of income and
wealth.
 To improve performance of the
economy.
 More employment .
 Social justice.
 Resisting monopoly influence.
 Proper use of natural resources.
 Control of production of harmful
products .
 Supply of goods at reasonable price

7. Ways of
Intervention
• Acting as supplier.
• Acting as buyer.
Direct
• Tax and subsides
• Regulation and
Indirect

8. Argument Of
Government
Intervention
In Market
Protecting jobs and industries.
National security.
Relation.
Protecting consumers.
Furthering policy objectives.

9. Argument against
of Govt.
intervention
 Problem On Tacking Quick
Decision
 Lack Of Flexibility
 Moral Hazard
 Level Of Bureaucracy
 No Consistency
 Inefficient Management
 Unfavorable Organization
 Lack Of Competition
 Problems Of Normal Economic
Development

10. Thanks For Your
Cooperation