BUSA 356 Lecture Notes - Lecture 1: Sub-Saharan Africa, African Renaissance, Foreign Direct Investment
6 Mar 2018
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Document Summary
Explicit - carefully formulated and discussed by senior government. Implicit - a loose collection of goals and policies that merely net the strategy, after the fact. The role of government is crucial: mediates the strategy, determines the organizational structure. Shapes the context by building and regulating the institutions that shape the market. The relationship between strategy and structure applies as much to countries as it does to firms. Essential role of the state: provide security (domestic and international, enforce contracts, property rights, and laws, back risk (incorporation, bankruptcy, unemployment insurance, pensions, nuclear facilities, provide money, manage the macro-economy. Fiscal policy - government spending and taxation (expenditure choices and revenue sources). Monetary policy - central bank"s changing of the interest rate, target inflation levels and exchange rates, regulate banking and control of the money supply. Incomes policy - wages, prices, work rules, distribution of income. Economic regulation - externalities (environment) and market failures (telecom, banking, infrastructure, and competition).
