Essays on Comparison of Government Relationships in Australia and the USA Case Study

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The paper "Comparison of Government Relationships in Australia and the USA" is a great example of a business case study.   Two primary institutions, identified as government and business, shape the contemporary society, of any country. Although many individuals know this, most of them including students become surprised after learning the various models of government- business relations existing throughout the contemporary world. The theoretical understanding of government-business relationship results from the ongoing development of various ideological and philosophical debates regarding the best way to organize society. This essay analyses the different paradigms adopted by countries by comparing the business-government relationship in Australia and the USA.

It also discusses the extent, to which both countries adhere to communitarian or individualistic paradigms. The end of the cold war, between capitalism and communism, in the year 1989, resulted to an end in the economic competition based on the two ideologies but gave rise to another form of competition between two forms of capitalists. George Lodge, a Harvard business school professor, in his work, “ Perestroika for America: restructuring U. S. business-government relations for competitiveness in the world economy” (1990), provides a distinction between the two forms of capitalism (the American form and the European and Japanese variants of capitalism form).

The American form of capitalism encourages the adoption of the free economy system, believed to be the best system for economic prosperity. The business-government relationship in the USA, bases upon the individualistic form of capitalism. This ideological paradigm stresses on issues that include individual values, limited government intervention, entrepreneurship, profit maximization, mergers and open competition. Whereas the United States adopts the ideology of capitalism, Australia uses the mixed paradigm where the government is authoritative and prestigious, it sets community value or work ethic, and it touts teamwork, industry strategies, firm loyalty and creates a consensus (Avineri and Shalit, 1992). The relationship between business and government in Australia The Australian governments have traditionally aimed at achieving three major objectives of internal balance, external balance and economic growth within an economy.

The three objectives aim at sustaining national economic growth while maintaining low inflation as well as limiting foreign debts and liabilities. Australia is a prosperous economy with a higher GDP compared to nations such as Germany, the UK and France.

Being a country that believes in the mixed market ideology, Australia believes in a free market that proves to be a remarkable engine of prosperity, which is an indispensable foundation of liberal democracy. The key to such an approach in economics is the quest for balance between social good and free enterprise, market and government, as well as the economic freedom and society’ s broader needs (Gregory, 1988, p. 134). Although there is an existence of a free market, there is a high level of intervention by the government to the economy.

The government believes that, through maximum intervention, market failure would be corrected; there would be income and wealth distribution equitability as well as improved performance of the economy. In Australia, all heavy and basic industries, as well as strategic sectors of the economy, are controlled by the government. For instance, there are many major owned enterprises in banking, communication, and in the transport industry. The government controls such industries as a mechanism for ensuring scarce resources become equitably distributed among the population.


Avineri, S., & Shalit, A. (1992). Communitarianism and individualism. Oxford, England: Oxford

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Kriesler, P. (1999). The Australian economy (3rd Ed.). St Leonards, N.S.W.: Allen & Unwin.

Lodge, G. C. (1990). Perestroika for America: restructuring U.S. business-government relations

for competitiveness in the world economy. Boston, Mass.: Harvard Business School


Loevinger, L. (1949). The law of free enterprise: how to recognize and maintain the American

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