After the first class, I learned that government interventions and regulations have so many impacts for the companies, cooperations and furthermore the whole economy. For example, in Beijing, the government forces every company and every family to pay for medical insurances. The insurance fee is lower than one hundred RMB per year but it can guarantee you free medical care whenever you need to go to see doctors. Many medicine companies heavily rely on government subsidies. It is good for the public to have the government pay for the bill and, at the same time, those medical companies can make amount of money out of it.
In Canada, because of the slumping flagship industry—— Resource Sector, its economy falters for a while and then it find a new way—Technology. According the news, “technology has become a more central part of the federal parties’ platforms””The Liberals have placed an emphasis on technology – alongside the environment – in their $1.5-billion jobs plan, which contains myriad proposals aimed at raising youth employment levels. Among those promises are tens of millions of dollars for co-op placements in the science, technology and engineering industries. The NDP has made similar promises, both related to employment and boosting the resources of space-related technologies. The Conservative government has also invested heavily in research and development tax credits – but has taken steps to limit the sort of companies and projects that qualify for those credits.” Thus,”since the start of last year, more than 50 new technology companies have gone public on the TSX and the TSX Venture Exchange, outpacing every other sector”. That is called OPPORTUNITIES in the SWOT matrix, as the external environment such as the Liberals, the NDP and the Conservative government supports the tech sector vigorously.
As powerful as the government is, one production could rise in one day and even also applicable for a specific sector of economy.
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