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The Impact of Government Policy on Business.

The Impact of Government Policy on Business.

Every country will be controlled by governments and at the same time, it is dependent on business, wealth and taxation to make the country function effectively. There are few important aspects where the policies which are made by the government have a direct and indirect impact on business and its operations overall.

* Whenever there is some kind of conflict across the world, it directly impacts the supply chain and logistics. The government further has to take action to increase taxes and depend on other nations for resources. You have seen that, suddenly, the oil, petrol, diesel, LPG and crude oil prices keep changing according to the circumstances. The price suddenly keeps increasing and decreasing, the stock markets might be bullish or bearish, impacting businesses overall. Whenever they initiate tariffs, subsidies and trade agreements, the prices would automatically fluctuate. It can generate massive wealth and development along with getting absolute security for loss or profit.

* Whenever political parties emerge and gain power. The business rules, laws and regulations keep changing. The tender which has been allocated can be stopped and called for re-tendering. It especially happens more in state governments. The projects keep getting challenged by bureaucratic restrictions and government interference.

* Imagine you are in the carbon business and suddenly the government brings a new environmental law which says it is impacting the citizens and forests. Then cost and expense would increase, or it might completely stop and further lead to legal problems.

* We have many giant players in the markets and have an absolute monopoly. To restrict such dominance, which can impact smaller and traditional businesses, the governments have strong regulations for competition and freedom.

* Today, the government launched a road initiative of 200 km policy. It is indirectly and directly generating supply and demand of assets, increasing the land value, construction, supply of goods and employment opportunities. It can literally change everything with a just law or rule, which can be positive with development or negative with devastating loss.

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