The paper 'Political and Economic Motives of the Government" is a good example of business coursework. International business has become a subject of interest amongst many across professions due to the numerous aspects involved in it. International business involves carrying Out business activities beyond national boundaries. It is an extension of domestic business, which includes the transactions of economic resources such as goods, capital and services comprising of technology, skilled labour and transportation. It includes not only international trade of goods and services but also a foreign investment. Precisely, it is now a subject of global concern since it is relative to the most vibrant industry from which most countries generate income.
In a professional institution, international business is an interdisciplinary major. It integrates course work in business administration, a foreign language and regional as well as cultural studies. It is therefore evident that the international aspect is appreciated by the inclusion of a foreign language in the syllabus. When a business enterprise goes global, it not only seeks to internationalize but also to serve customers in the international markets. Setting base in other regions would mean that the international entity immerses in other nations’ cultures, values and business practices.
These are key aspects alongside acknowledging the particular constitutional laws governing the business industry. Apparently, the most important factor for international business practitioners and firms revolve around the political and legal forces that are operational in the countries in which they plan to conduct business. The government’ s involvement in the business is therefore inevitable. The universal government position is to ensure that the citizens are safe from harms resulting from business operations such as polluted products.
According to Carney (2006), the government’ s involvement in the industry stretches further than just ensuring the safety of the consumers. This paper, therefore, seeks to discuss the motives behind the involvement of the government in the industry. The paper focuses on the political, economic and cultural motives Political Motives of the Government International business is more of a free trade affair with requirements of standardization and adherence to set rules and ethics for the shareholders. However, governments remain actively involved in the business for particular reasons. To start with, one of the major political reasons for this is the protection of jobs.
Cavusgil et al (2007) write that any government would get involved in the practice of international trade or the presence of an international business entity threatens jobs at home. Basically, availability of jobs is advantageous since it ensures that the citizens are employed and therefore actively participate in tax paying and more so economy building. Protection of jobs can be in the form of requiring that the international investors employ a greater percentage of locals or making local jobs more lucrative and motivating than those offered by these international businesses.
Protection of jobs for locals remains the most critical reason for government involvement (Milkin Institute Global Conference 2009). Secondly, governments also get involved to preserve national security. In the business industry, the preservation of national security will be in terms of ensuring an appropriate business environment for all. National security means a better value for the nation’ s currency, better returns for investors and a good economy. This in subsequence ensures an exhibition of a country in a way that attracts more investors to the region.
Industries whose existence is essential and vital to national security like the business industry are at the advantage of receiving government assistance and intervention regularly (Pelaez, 2009). Government preservation of national security is most evident in terms of imports and exports. The government restricts importation when necessary, with the aim of guaranteeing domestic supply, which preserves national security. As expected of the national government, many protect their agricultural sectors for national security reasons. Evidently, importation of basic things like food puts a country at the risk of starvation (Laguerre & Angiello 2004).
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