3.How do you believe business and economic functions should interact with society - Essay Example

The government though does has a large role to play in assisting the businesses in fundamentals like acquisitions and profits, by assist what is meant here is that the government through its power to make rules and regulations defines how business would be conducted and that is a major role that the government has to perform. In situations quite contrary to the one mentioned before, the role of the government might be more than just being an administrative supervisor, the government can take upon it self to run the whole economy, it could nationalize all major industries and say that we know what is best for us and we will produce what we like, such is the nature of managed economies.

We can now see that there is a close connection between the government and the running of the economy but there is a missing link in this chain i.e. the consumer. The consumer is perhaps one of the most important links in this chain because a consumer defines what is to be sold and what not in the market economy. The consumers through their purchasing power have the ability to dictate terms to the government, which in effect shape the rules and the regulations that are implemented within the society.

Each and every entity has its own role to play in the society but it can never exist in complete solitude because of the high inter dependence on each other. The discussion and the argument on the three points raised will follow but an important point here is that even these three points will have some points interlinked with them and hence a detailed explanation for these intertwined terms should not be expected. In a free market society the governments role is the bare minimal, the consumer and the producers of the product decide what is going to be made, how it is going to be made and for whom it is going to be made.

Through the forces of demand and supply the prices of the products are