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Government influences on business activities - Coggle Diagram
Government influences on business activities
taxation
tax evasion
tax fraud
Regulations and laws
Affects business activities as they are forced to follow government rules
Trade regulations (eg, free trade)
foreign relations: sanctions
Foreign relations can affect investment
privatisation
Private firms become more efficient than firms inn the public sector
Potential increase of investments
Reduces burden on taxpayers as tax revenue can be earned from profits made by private firms.
Grants
Subsidies
Supports a firm though this may increase taxation as subsidies is government spending
environmental regulations
Infrastructure
Improved infrastructure can increase business efficiency and attracts foreign investment
Government spending
Spending on infrastructure
Issuing subsidies
Problems of increased government spending
To sustain employment