Government policies and business environment
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How can government policies impact the quality of the business environment in the host country?
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Solution Summary
This explains the ways by which government policies impact the quality of the business environment in the host country.
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Government policies can have tremendous impact on the business environment. Favorable Political environment has got postive influence on the business. For example, if the countryt has preferrable democratic system, stable regime and transparent judicial system. All these make favorable environment for the business. Moreover, Michael E. Porter argued that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture.
Government's Role :
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