Political

Question 1

Regulations on Business

Answer 1

• Corporate governance - e.g. duties of directors
• Relations with employees - employee protection
• Relations with customers - consumer protection
• Competitive behaviours and relationships - competition policy
• impacts on third parties and the environment - planning law

Question 2

Government and business

Answer 2

The relationship is reciprocal.
Govt regulates business and acts as a customer, particularly in specialist industries such as pharmaceuticals and defence.
Business consults with government on policy, supplies goods and services

Question 3

Models of capitalism

Answer 3

• Minimal state - neoliberal, minimal state involvement.
• Developmental state- the state intervenes in economic life with the specific purpose of promoting industrial growth.
• Social democratic state - interventionist government even partnership - such as Samsung in S.Korea. Why, because otherwise unjust distribution of wealth and property such as Amazon and Starbucks lawfully avoiding tax (Samsung says otherwise).

Question 4

Regime vs income

Answer 4

Regimes close to fully democratic tend to be high income countries. The closer to authoritarian the regime is the more likely it is to be a low income state.