The role of the government in Canadian business

Résumé du document

Government is a very important factor that affects business in many countries, including Canada, in many ways. The role of government in Canadian business is an ideological issue, since right-wing political parties believe in kind of laissez-faire for business, and left-wing parties think contrarily that government has to be more involved in business and to regulate it. But anyway, there's always a government influence in Canadian business.

First, Canadian government decides the economic policy of the country by voting its yearly budget, and by implementing its tax policy. It tries to be the architect of economic growth. Moreover, the federal government is a regulation authority which somehow ordains all kind of businesses in the country, and more particularly sectors like the transports and the media. It prescribes rules for businesses, which means that the government regulation prevents them from doing whatever they want in order to protect consumers, and it gives companies a legal frame for their activities that they have to abide by. Therefore, Canadian government acts both like regulator for businesses and protector for citizens.

Besides of regulation, the federal government also has a major impact on business for it is Canada's largest employer. And it is the largest purchaser of goods and services in the country as well.

Canadian government is involved in financing development programs too, by putting money into development aid. It tries to develop small and medium-sized businesses in Canada through the Business Development Bank (BDB). And it is involved in enhancing research and development, and promoting export trough funding export insurance.

First, we will examine the role of the federal government in implementing its economic policy for Canada. Then, we will have a look at how its impacts on businesses. Finally, we will study how the federal government is trying to help and develop business through its many agencies and subsidies.

Extraits

[...] The federal government and the economic policy of Canada. As we said earlier, government decides what the economic policy of the country will look like. It includes several aspects such as the budget and the tax policy, and the monetary policy: the government decides and votes a yearly budget; a whole set of taxes is implemented as part of the fiscal policy, which then enables government to spend this revenue by providing services such as defense, health care, education and public housing; and the central bank of Canada adjusts the interest rates to stabilize inflation in the country. [...]

[...] It tries to develop small and medium- sized businesses in Canada through the Business Development Bank (BDB). And it is involved in enhancing research and development, and promoting export trough funding export insurance. First, we will examine the role of the federal government in implementing its economic policy for Canada. Then, we will have a look at how its impacts on businesses. Finally, we will study how the federal government is trying to help and develop business through its many agencies and subsidies. [...]

[...] This policy is determined by the Bank of Canada, a government Crown corporation which is independent from the government but is still accountable to Canadian Parliament. The Bank of Canada is the only bank able to issue bank notes in the country, and there is only one monetary policy for all the regions of Canada. Indeed, financial capital can easily move within the country, that's why interest rates are the same on similar assets all across Canada. In January 2009, the Bank of Canada cut its benchmark interest rate to signaled it is prepared to cut the rate again to combat a recession that will cause the economy to contract this year for the first year since 1991[6]”. [...]

[...] First, thanks to its numerous regulation authorities, government acts as a protector for consumers and prevents business monopolies and excess profits. Regulation also leads to a fair treatment of employees, safer working conditions, safer products and a safer working place. Canadian government is also a major factor in the economy of the country since it is involved in many Crown Corporations that are present in every sector, and that provide people with a public service intended to meet their needs, wherever they live in the country. [...]

[...] But anyway, there's always a government influence in Canadian business. First, Canadian government decides the economic policy of the country by voting its yearly budget, and by implementing its tax policy. It tries to be the architect of economic growth. Moreover, the federal government is a regulation authority which somehow ordains all kind of businesses in the country, and more particularly sectors like the transports and the media. It prescribes rules for businesses, which means that the government regulation prevents them from doing whatever they want in order to protect consumers, and it gives companies a legal frame for their activities that they have to abide by. [...]