The Influence of the Government Policies on a Business Explained with Examples. Watch this video!

Government policies will influence the production processes of the business. Government policies change due to a change in a political party or a change in social expectations. Examples of changing Government policy: Carbon. The government may increase taxes on some inputs making the production of goods and services more expensive. Carbon reduction legislation will put a cost on carbon for businesses. This will force operations to re-think the way production is conducted. Rules and regulations on the operations of a business: Governments are concerned about large businesses creating monopolies and will look to protect smaller businesses. Example: supermarkets.