Government interference

Economic interference

Legal interference

Maintain price stability

Reduce unemployment

Promote economic growth

Control the balance of payments (inference to imports and exports)

Reduce gap between the rich and the poor

Governments will try to keep economic growth at a constant rate of 2% annually. A rise or drop in this is known as a boom or recession. Through the use of monetary policy, such as interest rate rises, booms and recessions can be rectified. #

Employment laws and protections

Environmental laws and protections

Consumer law and protections

Monopolies create little competition within a market, resulting in mark-ups on their products. Competition policy is therefore used to prevent monopolies from occurring. The business might directly exploit their customers as well, so consumer legislation is used to combat this

Employers must abide by legislation that prevents the unfair dismal or discrimination against their sex, race or disability. They must also not pay their staff unequally

Subsidies given to businesses that produce green products

A carbon tax may be put in place in certain countries to curb emissions produced by businesses

Fiscal policy

Monetary policy

Policy directed at controlling the nations money supply

Policy directed at affecting government income and outcome

Taxation levels

Government expenditure

Interest rates

Regional policy is used to solve regional issues, such as high unemployment. A business may be given subsidies to locate in such regions

Food Safety Act, 1990

Trade Descriptions Act, 1968

Sale of Goods Act, 1979

Fair Trading Act, 1973

Competition Act, 1998

The Environment Act, 1995

Governments may also set tariffs and quotas on trade in order to protect domestic markets from unfair international competition