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Chapter 10 Government influence on businesses- economic policy and regional policy mind map

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Mindmap am Chapter 10 Government influence on businesses- economic policy and regional policy mind map, erstellt von Michael Wang am 25/08/2015.
Michael Wang
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Chapter 10 Government influence on businesses- economic policy and regional policy mind map
  1. Role of government in economy
    1. Promote economic growth
      1. Maintain price stability
        1. Reduce unemployment
          1. Control balance payments
            1. Imports
              1. Exports
              2. Reduce gap between rich/ poor
              3. Examples of government influence
                1. Subsidies
                  1. Green products
                    1. Solar power
                  2. Rent free
                    1. Local industry site
                    2. Create Jobs
                      1. Employment Subsidies
                        1. Depressed Area
                        2. Government training and advice
                          1. Business product overseas
                        3. Consumer Legislation
                          1. Protection from business
                            1. Business too powerful
                              1. "Monopoly"
                                1. Little competition
                            2. Fiscal Policy
                              1. Change Level
                                1. Taxation
                                  1. Gov. spending
                                  2. Help achieve aims
                                    1. Lower Tax
                                      1. More jobs
                                        1. More money
                                          1. More demand
                                  3. Regional Policy
                                    1. Solve regional problems
                                      1. Income inequality
                                        1. Unemployement
                                        2. Attract businesses to run-down areas
                                        3. Why do government influence businesses?
                                          1. Consumers
                                            1. Consumer Protection from business
                                              1. Business too powerful
                                                1. "Monopoly"
                                                  1. Little competition
                                                2. Exploiting consumers
                                                3. Boom/Recession
                                                  1. Control impact of businesses
                                                    1. Environment
                                                      1. People
                                                      2. Employees
                                                        1. Safety
                                                          1. Not exploited
                                                          2. Environmental
                                                            1. Damage
                                                              1. Waste disposal
                                                                1. Kill plant
                                                                  1. Kill animal
                                                                    1. Toxic
                                                              2. Government Expenditures
                                                                1. Range of services
                                                                  1. Healthcare
                                                                    1. Education
                                                                      1. Defence
                                                                        1. Transport
                                                                          1. policing
                                                                          2. Higher spending
                                                                            1. Welcomed by business
                                                                              1. Depends on where money is spent
                                                                          3. Taxation
                                                                            1. Direct
                                                                              1. Charged on income
                                                                              2. Indirect
                                                                                1. Put on spending
                                                                                2. Lowered
                                                                                  1. More spending
                                                                                    1. Increase product
                                                                                      1. Raise price
                                                                                    2. Raised
                                                                                      1. Cutting investments
                                                                                        1. reduce dividends
                                                                                      2. Monetary policy
                                                                                        1. Adjust money supply
                                                                                          1. Interest rates
                                                                                          2. Interest increase
                                                                                            1. Cost rise
                                                                                              1. Reduce profit
                                                                                            2. Purchase of capital goods discouraged
                                                                                              1. Expensive
                                                                                              2. Mortgage payments rise
                                                                                                1. Less to spend
                                                                                                2. Change in interest rate
                                                                                                  1. Impact on business with debt
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