Chapter 4: How Government Affects Businesses Flashcards
7 categories of government activities
Crown corporations Laws and regulations The bank of Canada Taxation Government expenditures Purchasing policies Services
National policy
Government directive that placed high tariffs on imports from the US to protect Canadian manufacturing which has higher cost
Crown corporations
Companies that are owned by the federal or provincial government
Ex. Canada post
Canada Pension plan
Export development Canada
Privatization
The process of governments selling crown corporations
Deregulation
Government withdrawal of certain laws and regulations that seem to hinder competition
Laws are derived from 4 sources:
Constitution, precedents established by judges, provincial and federal statutes, and federal and provincial administrative agencies
Marketing board
Organizations that control the supply or pricing of certain agricultural products in Canada
Public-private partnership
A method of privatizing public services or public infrastructure
The bank of Canada
A federal crown corporation
Provides baking services for federal governments, does not offer public banking
Monetary policy
The management of the money supply and interest rates
Money supply
The amount of money the bank of Canada makes available for people to buy goods and services
Overnight rate
Interest rate at which a major financial institutions borrow and lend one day funds among themselves
Prime rate
The interest rate that banks charge their most creditworthy customers
Sin tax
Extra taxes on things not good for you, smoking and alcohol
Fiscal policy
The federal governments effort to keep the economy stable by increasing or decreasing taxes or government spending
