Government Involvement

The government is involved in many areas that affect people’s lives today. These areas include business, education, war, health, labor, economics, and crime. However, one question many people might have, is the government too involved? Well, everyone believes the government is involved to a certain degree, this degree is determined based on an individual opinion.  The government involvement is often necessary but should but should limit itself on financial involvement with international business, economics, and the rebuilding of other countries.

Trade

Many people might wonder why the government is involved with the very broad interest of international business. Some of the larger economic reasons why the government intervenes with international business is unemployment, production, and economic relationships with other countries. The government is intertwined in international business to receive money to pay for programs and services to satisfy the population (Dommen, A., Dommen, C., Ringer, R., & Robbins, L, n.d.). Some non-economic reason why the government becomes involved with international trade is to maintain necessary industries, to maintain influence, and keep national identity.

By maintaining production and important industries to our country, we can help stabilize the economy. In the process of the economy stabilizing, the government receives money through contract agreements. The government needs money to provide programs for citizens for election purposes. Maintaining a national influence and identity are what is going to, in a sense, define America.

International business is required, because no country is capable of collecting enough resources that are necessary for its needs (Mchugh, J., Mchugh, S., & Nickels, 2006). Other countries, such as China, have many resources but little technology to create the final product. Other reasons for importing and exporting, are personal interests. This is where the comparative advantage theory comes in. The comparative advantage theory is a simple idea that a country should export its most effective and efficient products in order to buy products it does not produces as effectively or efficiently. But a much more uncommon process seen today is an absolute advantage, where a country has complete control, or a monopoly, on a product it specializes in making, creating it more efficiently than any other country. Some people start a foreign trade in a local environment according to their interest in having such products or services available at home (Mchugh, J., Mchugh, S., & Nickels, 2006). Some people might not agree with exporting our own resources, but what these people do not realize is that for every one billions dollars in products the United States sells, it creates approximately twenty-five thousand jobs (Mchugh, J., Mchugh, S., & Nickels, 2006).