Essay on Government
Taking into consideration the fact that the government promotes trade and other types of relationships between all the parties involved, one may suggest on equal attitude to producers and consumers. In order to deepen into the concern, the interest of both parties should be evaluated.
The term ‘producers’ usually applies to the companies that maintain own production cycle. Briefly, a cycle for the random company includes purchasing and allocation of raw materials used in production, manufacturing itself, and distribution of the ready-made goods throughout a certain geographical location.
The government regards each company as an economic unit that benefits the country in different ways: the company pays taxes, employs the work force, and utilizes the tangible resources of the country. Taxes from the legal entities and corporate bodies are the main source of profit for the government, so one of the main concerns of the government is to provide possibilities and facilities for trade within the country or outside its borders. The work force usually comprises of the citizens in the country, and by giving them job, the government decreases the level of unemployment saving the state budget. Each country possesses a certain amount of limited natural resources which belong to it. The government benefits by selling them or delivering the right of negotiation to the third parties.
The aforementioned factors also fall under the extension and specification. By arranging a foreign trade exchange of goods, the country appears more recognizable on the international market and affords to improve the image of the country. Let us remember IKEA, the world’s leading manufacturer of furniture and household appliances, which is one of the most well-known Swedish companies globally. One may also notice that the corporate colours of IKEA coincide with the colours of the Swedish national flag.
The term ‘consumers’ is used when identifying businesses and individuals with purchasing abilities. Purchase of domestic products means not only the customer satisfaction of needs but also the increase in GDP, the gross domestic product. It is a valuable measure of how well the country does because it influences the living standards and witnesses about the development of infrastructure and level of resource utilization. Therefore, the consumers are significant to the government as well.
Individuals are the human capital of the country which participates in the production processes. Groups of individuals make up institutions and organizations that may be involved either in management, production, trade or any other governmental or non-governmental activity. So businesses and governmental establishments may also be the consumers. The trade which occurs between two or more corporate bodies is known as business-to-business market, or B2B market. Even in this case, both businesses may be involved in manufacturing. This means that a certain company may be a producer and a consumer at the same time. The question arises: how should the government then treat such a company?
If to pursue the interests of the only party, the other party may suffer. Individual consumers may experience frustration and dissatisfaction with the products and their delivery, service or attitude, while ignoring the interest of businesses may lead to losses, recession, and instability.
Anyway, it is not always feasible to meet the desires and requirements of all affected sides. If the government has to make a strict choice, the trade policy should primarily benefit the producers. There are several reasons for that. At first, nowadays businesses struggle for their customers, so that the customer is free to choose among the high variety of suppliers and producers. They all try to convince the customer, and there is no need for the government to interfere. At second, the more producers are located in the country, the more parties including businesses and the government benefit. Among them, there may be conglomerates and businesses that produce goods or provide services for other businesses. Based on this, one may treat a service provider company as a production company as well. On the contrary, if the country has insignificant production facilities and limited number of manufacturers, it is better to concentrate on the interests of consumers rather than producers. At last, by pursuing the interests of businesses, the government may seldom target the interests of their employees. Employees are the individual consumers that have own preferences and will not probably depend on the benefits provided to their employer. They should be targeted separately, and mainly the network of small and large business enterprises is responsible for satisfying their interests. Consequently, there are still some closed countries like Belarus where the consumer interests equal needs because the government determines the access to the products and controls the production in the country.
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