Abstract
Government is a very important factor that affects business in many countries, including Canada, in many ways. The role of government in Canadian business is an ideological issue, since right-wing political parties believe in kind of laissez-faire for business, and left-wing parties think contrarily that government has to be more involved in business and to regulate it. But anyway, there's always a government influence in Canadian business.
First, Canadian government decides the economic policy of the country by voting its yearly budget, and by implementing its tax policy. It tries to be the architect of economic growth. Moreover, the federal government is a regulation authority which somehow ordains all kind of businesses in the country, and more particularly sectors like the transports and the media. It prescribes rules for businesses, which means that the government regulation prevents them from doing whatever they want in order to protect consumers, and it gives companies a legal frame for their activities that they have to abide by. Therefore, Canadian government acts both like regulator for businesses and protector for citizens.
Besides of regulation, the federal government also has a major impact on business for it is Canada's largest employer. And it is the largest purchaser of goods and services in the country as well.
Canadian government is involved in financing development programs too, by putting money into development aid. It tries to develop small and medium-sized businesses in Canada through the Business Development Bank (BDB). And it is involved in enhancing research and development, and promoting export trough funding export insurance.
First, we will examine the role of the federal government in implementing its economic policy for Canada. Then, we will have a look at how its impacts on businesses. Finally, we will study how the federal government is trying to help and develop business through its many agencies and subsidies.
