Review of Chapters 1-5, 9, 10 for Government Business Relations
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Government Business Relations – Midterm Review
Chapter 1 – The Game of Politics
Politics – An activity that involves making binding decisions about who gets what, when
and how. There are competing interests and differences that must be reconciled for the
supposed advantage of society
Government – Organization of people for the resolution of a dispute and conflict.
•Provides law and order
•“Peace, order, and good government” vs. “life, liberty, and the pursuit of
Plato – Questions and asks what is a “just society”
•Governed by knowledge and reason.
•Must be under the control of society’s most cultivated and best-informed minds.
•The most informed minds must determine objectively and consider all points of
view, what the most healthy/practical goals are for society.
Aristotle – Student of Plato. Considers city to be more important than the family.
•The natural community is the city
•The aim of the city is not just to avoid injustice or economic stability, but rather to
allow at least some citizens the possibility to live a good life.”
Open Society – One which ensures that political leaders can be overthrown without the
need for bloodshed, as opposed to a closed society, in which a bloody revolution or coup
d’etat is needed to change the leaders.
•Political freedoms and human rights – keeps no secrets from public, be responsive
and tolerant, and transparent and flexible.
Democracy – Allows for citizens to vote in a competitive, fair election process. 6 general
aspects for a true democratic state.
1. “Free” elections – free from harassment or intimidation
2. Universal voting rights
3. More than one political party
4. Liberty and freedom of expressions – media
5. Majority Principle – make policy decisions
6. Rule of Law – a guarantee that the state’s action will be governed by law, not by
Substantive – Rule for the common good. Citizens have say in how and who governs
Procedural – Procedures of how a country discusses/organizes political differences and
how citizens participate in politics.
Canada has a representative democracy – elected politicians make decisions with
the use of law due to their legitimacy and authority.
•Can. Is a federation – power and authority shared among federal, prov, and
municipal governments – Each has responsibilities and authority – thus Canada
has a responsible government.
•Constitutional Monarchy – Queen Head of State
•Parliamentary Government (Federal Level)
oHouse of Commons (lower house)
oSenate (upper house)
oGovernor General (represent Queen)
•Provincial – Lieutenant Gov represents Queen
•Municipal (Local) – Mayor and Councilors (elected)
Nation – Politically aware group of citizens with a given territory, land, etc. who may
want to expand or gain greater independence. Ex. Quebec
State - Political unit of a territory, a population, and a government. Involves institutions,
rules, procedures, etc.
•State Institutions (related to the constitution and federalism) – Executive,
legislature, bureaucracy, courts, police and prisons.
•Political Institutions – political parties, interest groups, elections, media.
Business – Any activity that seeks to provide goods and services to others while operating
at a profit. They are also affected by their stakeholders:
•Investors, customers, community, government, environmentalists, supplies,
financial institutions, employees, unions.
The Business Environment
•Legal and Regulatory Environment
oFederal Level - Competition Act, Trade regulations, etc.
oProvincial Level – Provincial trade, prov taxation, labour law
oMunicipal Level – Zoning laws, business taxes.
•Crown Corporations – company owned by the fed/prov government
oPrivatization – selling off of crown corporations
oDeregulation – government withdraws certain laws/regulations that
seemed to hinder completion. Ex. Telecommunications
•Taxation and Financial Policies
oFiscal Policy – Increasing/decreasing taxes or gov spending
oMonetary Policy – Management of the money supply/interest rates
Additional Gov Influences on Business
•Government Expenditures – Financial aid, transfer payments, equalization
Important Issues in Canada
•Debt – Accumulated deficits
•Deficit – Government expenses exceed revenues.
•Resource allocation, health care, youth unemployment, aging population, national
security, Quebec’s future, economy.
Chapter 2 – The Context of Government
•What Unites Canadians
o1982 Charter of Rights and Freedoms
Freedom of Conscience/Religion
Freedom of Thought, Belief, Opinion and Expression
Freedom of Peaceful Assembly
Freedom of Association
oPolitical Attitudes – Public Opinion
oPolitical Ideas, Customs, Traditions, Symbols – Flags, holidays, etc.
•What Divides Canadians
oPolitical views, age, gender, economic class, ethnicity, language, regional
•Age stratification (aging population), gender stratification (equality), class
stratification (income/education), ethnicity and language (cultural pluralism)
•Canada and the US
oTrade relationship, foreign investment, NAFTA, economic ties
•Canada and the World
oGlobal marketplace, world trade order (NATO, GATT, WTO)
oOECD – 8th largest economy in the world, 7th for highest standard of
Liberalism – Focuses on individual liberty (freedom and dignity). Right to representative
government, private property, free trade, and free enterprise. Economic equality
impossible – but the free market system would allow for improvements.
•Negative Liberalism – ideology challenged due to definition of liberty and how
this related to government involvement.
•Positive Liberalism – Liberty can only be defined as free of self-direction and