Business environment

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Business environment essay

The current business environment is characterized by governments holding a lot of power to make laws that can greatly influence the status of the business environment. The US government has three levels of government; namely the local, state and federal governments each of which is capable of greatly influencing the business environment that falls under its jurisdiction. The federal government has the power to control many business environment areas such as income tax, company law and trade agreements, among others, while the state government has the power of the business environment such as those of pollution, state courts and price controls. Meanwhile, the local governments have the power to influence the business environment through building approvals, rates and zoning. One essay on business environment stated that through the local government’s powers to influence the business environment of zoning, the local government can determine where business firms are to be located, and how many of businesses that are similar to one another can be constructed in a specific area. Another essay on business environment states that the business environment can directly, or indirectly, affect the business by either forcing or encouraging businesses to comply with its decisions. The business essay then states that of all the three levels of government, it is the federal government that holds the greatest power to affect the micro economic business environment through its obligations to come up with policies. The government usually comes up with policies to satisfy its numerous economic objectives. For instance, trade, monetary and fiscal government policies are made to tackle with issues such as boosting employment numbers and checking on inflation figures.