BUS 111W Lecture Notes - Lecture 3: Business Cycle, Deflation, Canadian Dollar

• School: University of Waterloo
• Department: Business (Wilfrid Laurier University)
• Course: BUS 111W
• Professor: Roopa Reddy

Document Summary

Government regulates certain industries wants to ensure that there is an adequate amount of competition, but prevents too much competition: taxes. The government uses taxes to subsidize things such as education and health care. Use taxes & the way they tax us to create incentives/disincentives to do certain things: trade agreements or conditions. When fta (free trade agreement) was first signed, businesses thought american companies will take over market but canadian companies worked hard & overpowered the american market. Open up opportunities open up new markets. Can also be a threat due to competition: political system. At one extreme, there is capitalism: the government is laissez faire allows private ownership of the fop and encourages entrepreneurship by offering profits as an incentive. At the other extreme, there is communism: the government controls everything. Companies prefer capitalist approach more flexibility and room to pursue opportunities: political stability.