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Some policies are expensive, but people still abide by them. The government needs revenues to run the country. Imagine living in a country where the government is bankrupt? Life would be so expensive to keep up with the daily activities. The following are some of the government policies that businesses should consider and their effects.

Business License and Permit

You cannot fail to meet this government policy because you need permission to start and run your firm. Even on social media, you will notice other business operators speaking of this policy in almost every country. 

You can buy SoundCloud plays to entertain your customers if your permit allows you to. However, the permit denies the business owners to play music in certain areas such as hospitals and schools to avoid noise pollution in some states. 

You need to acquire a license and a permit that regulates your business operations to align with what the government wants. Also, some of these permits and licenses are meant to prevent entrepreneurs from starting up a business with illegal operations. 

Also, some firms have operations that sell products and offer services that are harmful to human consumption. That is why this policy is crucial to be implemented by every business. 

Additionally, there are quack doctors who offer medical services in some businesses, such as clinics, yet they are not qualified. That is why this policy is very important for the citizens of that country.

Market Catalyst Policy

This policy is for the government to limit some business operations. For example, the government can impose taxes on carbon-based fuels because of their impact on the environment. 

When the government imposes taxes on a particular market, it is meant to limit entrepreneurs and marketers interested in that sector. On the other hand, they can grant subsidies on a particular product to act as a market catalyst. 

For example, they can promote local products by imposing heavy import duties to reduce imported goods. Some products are also added taxes to reduce the consumption of that product. A good example is alcohol and cigarettes.

Political Culture and Stability

Most of these government policies depend on the political culture at that time. There is a huge difference between a policy crafted from a stabilized country compared to a non-stabilized country. 

The country facing political instability such as political violence will impose some business owners’ policies. It is either for the sake of their safety or a measure to reduce political violence.

Interest Rates

The government policy can be for the sake of influencing the interest rates of the country. The increase in interest rates can lead to an increase in the cost of borrowing of the business community. 

On the other hand, when the government increases the rates, it decreases consumer spending. Alternatively, a decrease in rates attracts investment in business products.

Government Regulations

The government has so many regulations, such as trade regulations, federal minimum wage, and even licenses. All these regulations affect business in one way or another. A good example is the health inspection in hotels and restaurants.

These health inspections are for the sake of ensuring that the business produces quality and healthy food products. The business will spend a lot of money to buy the detergents and pay the cleaners, and also a lot of time is spent on the cleaning operations.

In Conclusion

The government has to set these policies to regulate business operations. Not all entrepreneurs start-up legal and valid businesses. The government has the responsibility to take care of its people.