State Control and Public Control of Business
1)Historical perspective on public control of business. 2)Constitutional framework of state control of business.
What is business?
• The buying or selling of goods/services/activity of making money.
However, the term is too vague.
• According to F.C Hooper: “business means a whole complex field of commerce and industry, the basic industries, processing and manufacturing industries and the network of ancillary services, distribution, banking, insurance, transport and so on, which serve and inter-penetrate the world of business as a whole” What is business environment?
• It can be defined as the total surrounding, which have direct or indirect bearing on the functioning of business.
OR
• The set of external factors(social, political, legal etc.) which are uncontrollable in the nature and affects the business decisions of the firm.
Public policy
• In simple words it is a plan of action undertaken by a government to achieve some broad public purposes. • However, in the words of senator Daniel Patrick
Moynihan: “ public policy is what the government chooses to do and not to do”.
• It may deal with a wide variety of issues both vital or trivial.
• It may also deal with important areas as defense, education, public health, housing, employment, relief for calamities, inflation and recession etc.
While it cannot ignore trivial issues like changing the color of the currency notes. Areas of public policies
1. Economic management: it is the most important area. Prior to onset of the great depression, it was assumed that every economy is self-correcting and moves towards the right direction to restore the nation’s economic health. But the great depression has changed the view. The self-correcting economy has been found to be inefficient in dealing with problems of depression.
With the emergence of stabilization measures adopted by governments to combat recession and depression and the concept of welfare state. It is assumed that state intervention is essential and
What is business?
• The buying or selling of goods/services/activity of making money.
However, the term is too vague.
• According to F.C Hooper: “business means a whole complex field of commerce and industry, the basic industries, processing and manufacturing industries and the network of ancillary services, distribution, banking, insurance, transport and so on, which serve and inter-penetrate the world of business as a whole” What is business environment?
• It can be defined as the total surrounding, which have direct or indirect bearing on the functioning of business.
OR
• The set of external factors(social, political, legal etc.) which are uncontrollable in the nature and affects the business decisions of the firm.
Public policy
• In simple words it is a plan of action undertaken by a government to achieve some broad public purposes. • However, in the words of senator Daniel Patrick
Moynihan: “ public policy is what the government chooses to do and not to do”.
• It may deal with a wide variety of issues both vital or trivial.
• It may also deal with important areas as defense, education, public health, housing, employment, relief for calamities, inflation and recession etc.
While it cannot ignore trivial issues like changing the color of the currency notes. Areas of public policies
1. Economic management: it is the most important area. Prior to onset of the great depression, it was assumed that every economy is self-correcting and moves towards the right direction to restore the nation’s economic health. But the great depression has changed the view. The self-correcting economy has been found to be inefficient in dealing with problems of depression.
With the emergence of stabilization measures adopted by governments to combat recession and depression and the concept of welfare state. It is assumed that state intervention is essential and