Competitive Strategies and Government Policies

CompetitiveStrategies and Government Policies

CompetitiveStrategies and Government Policies

Usually,government policies in the direction of the environment and taxes,has control processes for parameter and statute. The policies aremade to attain more well-organized use of the assets which are madeobtainable to the customers or consumers through the government, soas to endorse a swap between the current assets and provide aninducement from the government policy (Nolandand Pack, 2003).The truth of the matter is that, the crisis is just created to drawattention but not to solve the underlying problem. Looking at theexisting policies and governing camouflage, it has been found thatquite a number of current policies are made just to tacklefundamental issues by the government. The truth is taxes cut down onthe production, thus increasing charges. This alone might have anopposing result on the consumer. Manufacturers might be able to passon the tax to the purchasers incase the commodities’ demand isintense, and at the end, tax may just have a peripheral result inplummeting the demand and finial output of the amount commoditiesthat would be delivered each passing day.

Asnoted by Noland and Pack (2003), the government can respond toexternalities in two ways. The government can use command-and-controlpolicies to control behavior directly. Then again, the government canexecute market-based policies such as taxes and subsidies toincentivize private decision makers to change their own behavior.According to Best (2001), command-and-control regulation can come inthe form of government-imposed standards, targets, processrequirements, or outright bans. Such measures make certain behaviorseither required or forbidden with the goal of addressing theexternality. For instance, the government may make it illegal for acompany to dump certain chemicals in a river. By doing so, thegovernment hopes to protect the environment or other companies orindividuals that use the river that would otherwise suffer a negativeimpact.

References

Best,M. (2001). The New Competitive Advantage. Oxford: OxfordUniversity Press.

Noland,M. and Pack, H. (2003). Industrial Policy in an Era ofGlobalization: Lessons from Asia. Washington, DC: Institute forInternational Economics.