AFM131 Chapter Notes - Chapter 4: Price Fixing, Consumer Protection, Sin Tax

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Robert Sproule

Document Summary

The 6 categories of government involvement in business: Crown corporations - their role in the economy, sometimes competes with for-profit private businesses. Laws and regulations taxation and consumer protection to environmental controls, working conditions and labour-management issues. Taxation and financial policies - collect taxes, to achieve certain goals and effect certain policies. Government expenditures - provide direct and indirect aid: tax reductions, grants, loans and loan guarantees. Purchasing policies - single largest purchaser, huge effect on industry and economy as a whole. Services - direct and indirect activities: helping companies globalize, training and re-training the workforce. We have a mixed economy in canada which relates to the allocation of resources by both the market and the government. We have been over-shadowed by the u. s. economy- developed faster with products either not made in canada or not available because of a weak east/west distribution system. Led the federal government to the development of the national policy high protective tariffs.