Business Studies

Choose 1 topic from the 3 below and submit a 1-page essay.

1. Should governments intervene in the economy to address issues such as pollution, corruption, and economic inequality?

2. Should governments try to use economic policies to regulate the power of the large technology companies –Alibaba in China, Google, Facebook, Amazon and Apple in the US?

3. Should governments support/protect specific industries, particularly those industries with young, emerging companies/technologies?

Please refer the below course work:
https://1drv.ms/u/s!AjaPv6kEZ6pPgxyAj2HTnMLgjxnW?e=tFQFes

Task:
1. Confirm me the topic you choose
2. Confirm me which part of theory you have used from the course work.
3. Use Demand and Supply diagram to further explain if needed

ANSWER

The Need of Governments to Support Emerging Companies

The COVID-19 pandemic highlighted the need for small and emerging companies requiring help from different institutions for their survival, and notably from the government. Emerging companies, especially technological ones, have proved to be vital and promising in boosting the economies of some countries and creating many job opportunities (Johnson, 2022). Companies like Facebook and WhatsApp (now owned by Facebook) were once-promising emerging technological companies, which turned out to be billion-dollar companies, with users globally. Both companies received a grant from the government after the recession. The help proved vital to their survival, as they faced the possibility of bankruptcy and eventually going out of business. Therefore, it is essential for governments to assert policies and offer grants to emerging companies as they pose as potential backgrounds to the development of economies.

For instance, the government protecting and helping emergency companies will ensure that employment opportunities are guaranteed, minimizing the high unemployment rate (Bardazzi, 2020). During the pandemic, statistics showed that three out of four startup companies fired most of their employees to channel money to their operations. By April 2020, the United States lost a record 20.5 million jobs, with the majority of the fired employees coming from startup companies (Bardazzi, 2020). However, the government can support such companies by giving them direct grants with zero-interest loans.

Apart from job creations, emerging companies should be protected as they open new markets. Such markets completely transform the old market, introducing exciting and profitable ventures that benefit the economy (Johnson, 2022). Giants like Apple, Google and Facebook were once startup companies but have now completely changed and dominated the market, with billions of users globally relying on their products.  They also lead to the disruption of the economy, challenging existing companies to upgrade their products and services for customer satisfaction. Through disruption, customers can enjoy affordable products, thus improving the overall economy.

References

Bardazzi, G. (2020). The role of start-up companies in creating job opportunities. In Studies in Surface Science and Catalysis (Vol. 179, pp. 499-510). Elsevier.

Johnson, P. (2022). Macroeconomics-Session 2. Retrieved from https://onedrive.live.com/?authkey=%21AICPYdOcwuCPGdY&cid=4FAA6704A9BF8F36&id=4FAA6704A9BF8F36%21413&parId=4FAA6704A9BF8F36%21412&o=OneUp