Introduction: In this task p4 I have been asked to outline the role of government in creating the business climate. I would be giving three type of government and explain their activities that affect the UK Business. And also I would include a diagram to show the UK government’s roles in the economy. Identify and describe the three types of government activities that affect UK Business (P4). 1) The European Government: the European government makes policies and laws that will affect the European Union. They are concerned with social and environmental issues as well as other parts including agriculture.
What they do is they provide free health care; they protect internal market by allowing business within the EU to grow across boundaries without any controls or restriction. And also the EU attempts to ensure that all businesses compete equally with each other and encourages competition laws to keep prices low for consumers within the EU. Most of businesses also benefits from product standardisation, which would mean that most products can be sold all around Europe without needing to be adapted or changed. ) The UK National Government: The UK government provides laws that apply to everyone in the UK but also has to be abiding by the EU directives in agreed area, such as employment rights, product, product safety and competition. The government tries to attract foreign businesses to relocate to the UK to increase employment prospects. The aim of the UK National Government is to create a sound and stable economy in the UK with continued growth to guarantee future employment and to help businesses to flourish. And also encourage new entrepreneurs to start and also grow businesses in the UK. ) The Local Government: The Local Government role is to provide jobs for unemployed and give free education. Local government provides housing benefits, free travel and also provide houses for local people. It makes sure that the streets are clean, collects bins, provide lights on the streets. It provides safety (street security) and police . Draw a diagram to show the UK government’s roles in the economy (P4) * the Government’s roles in the economy The UKTI website claims the UK is a good place to set up business because it is a leading global trading nation with strong, stable economy is a key aim of all UK government.
To achieve this they have four economic objectives: * the Government’s roles in the economy Full employment: * Reduce benefits low and make it difficult to claim for long periods. * So everyone who wants a job can find one Economic Growth: * Keep interest and taxes low * Improve skills level via training new govt projects to start A surplus on the balance of payments: * This means that the UK exports more than it imports. Keeping inflation low: * Reduce consumer demand and spending via increase of interest rates and increase taxes to reduce disposable income * Pay public sector workers small pay rise
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