Textbook Notes (368,796)
Canada (162,165)
Commerce (1,696)
Rita Cossa (83)
Chapter 4

Chapter 4.docx

4 Pages
Unlock Document

Rita Cossa

Chapter 4 - The role of government in business Government activities that affect business may be divided into six categories: Crown corporations, laws and regulations, taxation and financial policies, government expenditures, purchasing policies, and services. national policy - gov't directive that placed high tarrifs on imports from the US to protect Canadian manufacturing, which had higher costs crown corporations that are owned by the federal or provincial gov't they provided services that were not being provided by businesses (ex. Air Canada) created to bail out a major industry in trouble (ex. Canadian National Railway) they provided some special services that could not otherwise be made available (ex. BOC) typically owns the province's electric power company privatization: the process of gov'ts selling Crown corporations deregulation: gov't withdrawal of certain laws and regulations that seem to hinder competition everywhere you look, gov't agencies, like for-profit organizations, are looking at ways to lower costs and improve efficiencies laws are derived from 4 sources: the Constitution, precedents established by judges, provincial and federal satutes, and federal and provincial administrative agencies. Canada has a legislature in each province and territory to deal with local matters. The Parliment in Ottawa makes laws for all Canadians. The Constitution defines the powers that can be exercised by the federal and provincial gov'ts. In an event of a conflict, federal powers prevail. federal gov't responsibilities issues that affect citizens across Canada ensure and support the country's economic performance other responsibilities: trade regulations, incorporation of federal companies, taxation, the banking and monetary system, hospital insurance and medicare, the public debt and property, national defense, unemployment, immigration, criminal law, fisheries the federal gov't lobbies other country gov'ts to decrease trade barriers in an attempt to create business opportunities for Canadian trades marketing boards: organizations that control the supply or pricing of certain agricultural products in Canada Provincial gov't responsibilities issues that affect provincial residents but do not necessarily affect all Canadians responsibilities include: regulation of provincial trade and commerce, natural resources within their boundaries, incorporation of provincial companies, direct taxation for provincial purposes, licensing for revenue purposes, the administration of justice, health and social services, municipal affairs, property law, labour law, education trade barriers exist because gov't created them to protect their economies from outside competition gov't also put policies in place to protect the environment, establish workforce standards, or achieve other regulatory purposes Municipal gov't responsibilities approx. 4000 municipal gov'ts in Canada provide services like water supply, sewage and garbage disposal, roads, sidewalks, street lighting, building codes, parks, playgrounds, libraries, etc. play a role in consumer protection (ex. inspectors at restaurants, zoning laws about noise, odors, etc) parking, speed limits, height limits of buildings all business usually must obtain a municipal license to operate - to be tracked and kept up to date with regulations that must be followed taxes are how all levels of gov't redistribute wealth the revenue is used for public services (fire, policy, libraries, etc), pay down debt, and fund gov't operations and programs ex. if the gov't wishes to reduce the use of certain classes of production (ex cigarettes and alcohol), it passes what is referred to as a sin tax. It is hoped that the additional cost of the product from increases taxes discourages additional consumption comes from income, sales and property federal gov't receives its share of taxes from personal income fiscal policy -
More Less

Related notes for COMMERCE 1B03

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.