The Impact Of Government Policy On Economic Growth . Understand government-business trade relations and how political and legal factors impact international business. Tax and economic policies: Increasing or decreasing rate of taxes is a good example of a political component. Increasing Competition 2. Profit is the most direct answer to how government regulations affect business. In a free market society, such as the United States, the goal of business is to turn a profit. More Demanding Customers 3. The Impact Of Government Policy On Business Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. This decision will directly impact businesses. Rapidly Changing Technological … If you continue browsing … How Government Spending, Fiscal and Monetary Policy Impact on Business. The federal government should also get out of the business of encouraging smart-growth policies at the local level; smart growth plays a significant role in the Environmental Protection Agency … J. L. Bryan Ricciardi College of Business, Bridgewater State University, Bridgewater, Massachusetts, USA e-mail: j . ... Each political system’s philosophy impacts the policies that govern the local economy and business environment. There's an established model called PEST analysis, which evaluates political, economic, social and technological factors that could affect the cost and difficulty of doing business. Learn about the impact of economic conditions on government policy and understand how governments attempt to engineer certain economic conditions by controlling a country's money … Identify the Impact of Government Spending On Business. Abstract . Government pol icy has always had a significant influence on economic growth and new business … The impact of government policies and actions on business investment in technology and operating practices is the subject of a vast and continually growing body of scholarly literature and policy studies (see, as recent examples, Carnegie Commission on Science, Technology and Government… Government regulations may raise the tax rate for some businesses and can lower the same for others due to specific reasons. bryan@bridgew.edu . ADVERTISEMENTS: Some of the impacts of changes in government policy on business and industry are: 1. Every regulation that is imposed by the government on business … It is possible to analyse and forecast the impact of government policies on doing business. The most direct impact on business … The government is trying to exercise different economic policies which are influencing UK business …