The Role of Gov't in International Business

Question 1

Gov’t &International Business

Answer 1

• Government plays a large role in international business.
• Through its economic and political systems, and the various policies and organizations it runs, it influences economic trade between countries.
• Governments make decisions about how to balance the need to protect domestic industries with the need to encourage international expansion and foreign investment.

Question 2

Some of the ways government affects international trade and business include:

Answer 2

1. Establishing import and export laws
2. Determining taxation rates, including providing incentives to encourage international trade and investment
3. Setting tariffs and other trade barriers
4. Maintaining membership in trade organizations and negotiating trade agreements

Question 3

More ways governments affect international trade and business include:

Answer 3

5. Determining monetary policy, including currency exchange rates
6. Determining fiscal policy, including taxation laws
7. Coordinating trade missions, intergovernmental contracts and embassy consulate networks
8. Building infrastructure, including roads and sewer systems.

Question 4

Intergovernmental Contract

Answer 4

• When two or more governments agree to cooperate
• Usually to share resources or improve services
• Canada has an intergovernmental agreement with the United States governing the sharing of tax-related information.

Question 5

Embassy

Answer 5

• The diplomatic representation of a country’s government in another country.
• It is responsible for communication occurring between the home and foreign governments and militaries, promoting home culture in the host country, and coordinating international treaties and state visits.

Question 6

Consulate

Answer 6

• The representation of the public administration of a country in a foreign city.
• It is responsible for its own citizens living or travelling in the host country, coordinating passports and visas, and assisting its own citizens in distress or emergency situations.
• This site provides directory information for every embassy and consulate around the world, as well as trade and other diplomatic representations.

Question 7

Trade Mission

Answer 7

• A delegation of government and business representatives visiting another country in order to promote business opportunities.