COMMERCE 1E03 Chapter Notes - Chapter 5: Mixed Economy, Unemployment Benefits, Fiscal Policy
3 May 2018
School
Department
Course
Professor
The Role of Government in Business
• Government activities that affect businesses can be divided into six categories
o 1-Crown Corporations
o 2-Laws and Regulations
o 3- Taxation and Financial Policies
o 4-Government Expenditures
o 5-Purchasing Policies
o 6-Services
• The government is trying to respond to business needs
Government Involvement in the Economy
• The Canadian economy system is described as a mixed economy some allocation of
resources is made by the market and some is made by the government
• Eery outry’s goeret is ioled i the eooy
• Caada as fored i ad the federal goeret as gie poer to regulate
trade ad oere
• Special efforts were needed to unify Canada once the western provinces joined the
confederation
• Most people lived near the U.S border- which provided products not available in the
provinces, either because they were not made in Canada or there was no transportation
to distribute them
• National Policy: Government directive that placed high tariffs on imports from the
United States to protect Canadian manufacturing, which had higher cost
find more resources at oneclass.com
find more resources at oneclass.com
1-Crown Corporations
• Crown corporations: companies that are owned by the federal or provincial
governments
o Ex. CBC in Canadian heritage (Canadian broadcasting corporation)
o The royal Canadian mint in finance
• They were set up to...
o They provide services that are not being provided by businesses
o To bail out a major industry in trouble
o They provide some special services that could not otherwise be made available
• Privatization: The process of the government selling Crown Corporations
• Deregulation: Government withdrawal of certain laws and regulations that seem to
hinder competition
o Trend towards deregulation of partially deregulating industries
2-Laws and Regulations
• Laws are derived from 4 sources
o 1-The Constitution
o 2-Precedents established by judges
o 3-Federal and Provincial statues/laws
o 4-Federal and provincial administrative agencies
• Laws can apply to setting up, running a business and closing a business
• Sharing Economy: An economy system in which assets or services are shared between
private individuals, either free of for a few, typically by means of the internet (ex. Uber
and Airbnb)
• Marketing board: An organization that controls the supply or pricing of certain
agricultural products in Canada
o They often control trade
o Supply management is designed to give stability to an important area of the
economy that is normally very volatile
▪ Ex. Farmers- they a’t otrol the eather for their rops
• Federal Parliament Responsibilities
o Trade regulations
o Taxation
o Incorporation of federal companies
o Bankruptcy and insolvency
o Immigration
o Unemployment
o Social security
find more resources at oneclass.com
find more resources at oneclass.com
