Chapter 11 Government Influences in the world

Igcse edexcel

1. IGCSE Business Studies
Section A
Chapter 11 - Government Influences on
Businesses Legislation and other controls
Miss Mareem

2. Learning Objectives
•Understand the concept of how
government influence businesses
through legislation and controls.

3. Consumer Protection
•Exploiting consumers by using Anti – competitive
practices or restrictive practices such as:
•Increasing Prices
•Restricting Consumer Choice
•Raising barriers to entry
•Market Sharing

4. Consumer Protection

5. Competition Policy
•Encourage the growth of small firms – this will
increase competition and consumers will benefit
from good quality and low prices.
•Lower barriers to entry – this will encourage more
firms to join the market therefore increasing
competition.
•Introduce anti competitive legislation – mergers
of large corporations and takeovers are restricted to
avoid monopolies from forming.

6. Health & Safety Legislation
•To protect workers from dangerous machinery.
•Workers should be provided with proper safety equipment's and
clothing.
•A reasonable workforce temperature is maintained for workers.
•Proper hygienic conditions and washing facilities are provided.
•Workers get adequate breaks between shifts.

7. Employees Protection
legislations
Government may pass laws to protect the interest of employees
such as:
•Laws against unfair discrimination at work and when applying for
jobs.
•There is no unfair discrimination on the basis of Race, religion, sex,
age, or colour.
Ensure fair wages for the employees
•In many countries, government makes it mandatory to have a
written contract of employment. It contains the details of the wage
rate; working hours, deductions (if any) and other necessary details
regarding working conditions. Minimum wages paid to different
types of workers are also determined by the government.

8. Environment protection
•In the recent years government across the globe have
passes legislations to control business activities from
harming the environment.
•This includes setting limits to the pollution, making it
mandatory for businesses to treat their wastes etc.
Destruction of wildlife habitats, traffic congestion and
wasted resources.
•Environmental legislation – if business fail to comply
with environmental legislations they could be fined or
closed down.

9. Taxes & Subsidies
•Taxation can be used to reduce pollution. Business
are heavily taxed if they produce harmful emissions
into the air.
•Government can offer grants, tax allowance and other
subsidies as incentive to reduce pollution and
encourage greener practices. Like large supermarket
using recyclable shopping bags or paper bags rather
than plastic bags.

10. Government Influences &
Business Objectives
•Government often influences location of business
through
•Encourage businesses to become socially responsible.
•Planning controls involve restricting the business
activities that can be undertaken in certain areas.
•Provide regional assistance to businesses which
involves encouraging them to locate in
underdeveloped regions of the country.

11. Task