Professional Documents
Culture Documents
GROUP ACTIVITY 1
Over the years, the Chinese government has identified a number of national champions. In
recent years, these have included the biotechnology industry, the new energy cars industry
and the rare earths industry.
a Identify two ways a government could promote the growth of a national champion.
b Identify a possible national champion from your country and explain your choice.
INDIVIDUAL ACTIVITY 1
The number of letters and parcels being sent by post (mail) is declining throughout the world.
In some countries, for example the Netherlands, the postal industry is in the private sector. In
others, it is in the public sector, for example the Nigerian Postal Service is government owned
and operated.
a Explain one argument for:
i the state delivering mail
ii private sector firms delivering mail.
b Explain two advantages of working for a state-owned enterprise.
Governments also vary in their policies towards foreign multinational companies (MNCs) KEY TERMS
wanting to set up in their countries. Some governments seek to attract them, believing
Trade bloc: a regional
they will generate jobs and increase the output that is produced in the country. Other
group of countries
governments stop foreign MNCs setting up in their countries as they think they will drive that remove trade
domestic firms out of business. restrictions between
themselves.
Some governments are also members of trade blocs such as the European Union (EU) and
Mercosur (a Latin American trade bloc). Trade blocs promote trade between the member Free international
countries and may restrict trade with non-members. In addition, governments belong to trade: the exchange
of goods and
international organisations. For instance, in 2016 there were 164 member countries of the
services between
World Trade Organisation (WTO). The WTO deals with global rules of trade between member countries without any
countries. Its main aim is to promote free international trade. restrictions.
GROUP ACTIVITY 2
Summary
You should know:
■ Governments may raise some taxes and provide some goods and services at the local level.
■ A government may seek to ensure the survival of key industries by running them as state-owned
enterprises.
■ A government may run a natural monopoly and may produce essential products.
■ Governments produce, or at least finance, the output of public goods and may produce merit goods.
■ Governments may work in partnership with the private sector to finance a government project or to
provide a good or service.
■ Employing workers can help a government achieve its aims for the economy including reducing
unemployment, keeping inflation low and raising the standard of employment practices.
■ Governments may promote free international trade or impose restrictions on international trade.