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Week 9 - The Political Context.docx

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Administrative Studies
ADMS 1000
Eytan Lasry

ADMS 1000 October 29, 2013 WEEK 9:  THE POLITICAL CONTEXT Government Influence in Canada • The Canadian economy is a mixed market system: Essentially capitalist but with a strong government influence in various sectors of the economy and nearly complete control of the health care and education sectors. • Influences: o Taxation  Collection of restrictive/ regulatory taxes (excise & customs duties/tariffs) e.g. on Tobacco, Alcohol etc  Collection of revenue taxes (individual, corporation, sales, property) o Crown Corporations  Provide services that private enterprise would not otherwise pursue (Canada Post)  Implement public policy & safeguard national interests, e.g. CMHC, Bank of Canada o Regulation  Imposes constraint to modify economic behaviour in the private sector, e.g. Energy, Health & Safety  Imperfect Competition –intervention ensures appropriate provision of goods & services.  Public Interest – protects consumers through regulation, limitations imposed on business (e.g. foreign ownership, advertising, pricing etc)  o Bailouts and Subsidies • Government as guardian of private business/enterprise
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