💯 The Influence of the Government Policies on a Business Explained
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Government policies will influence the production processes of the business. Government policies change due to a change in a political party or social expectations. Example of changing Government policy: Carbon. The government may increase taxes on some inputs making the production of goods and services more expensive. Carbon reduction legislation will put a cost on carbon for businesses. This will force operations to rethink the way production is conducted. Rules and regulations on business operations: Governments are concerned about large businesses creating monopolies and will look to protect smaller businesses.
Example: supermarkets.
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