BU111 Lecture 6: Political Factors
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BU111 Full Course Notes
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Elements: signi cant for the protection of consumers, support & regulation of domestic businesses, and opportunity creation in foreign markets: laws, regulations, taxes, trade agreements, political system, political stability. Collected by all three levels of government. Approaches - progressive, regressive, restrictive: provider of incentives & financial assistance. Subsidies, tax breaks, support for small and large businesses, research funding. Bail outs: provider of essential services. Highways, armed forces, police & re dept. , hospitals, education. Regulates business activity; in uences technology standards - crtc (canadian radio-television and telecommunications commission) Promotes competition - competition act, small business support. Protects consumers - i. e. hazardous products act. Achieve social goals - i. e. universal health care, education. Protect the environment - canada water act, fisheries act. Connection to the five forces: potential entrants. Taxation agent: potential entrance barriers decrease when established. Rms pay a tax that new rms do not: buyers. Government as a customer (large buyer power, slows sales cycle: suppliers.
