Businesses that need special attention of government to deal
Businesses are to be supported by governemnt for the welfare of economy. But some businesses needs special care and attention.
The business that not only affect individual profit margins but have a deep impact on country and its citizens.
The special transactions or trades that government often find hard to handle are:
- Oil and Petrolium: This industry is most complex for government to handle. A little rise in prices results in inflation and leading to anger in general public. Government here not only face inflation or other related problems but also losing its votebank.
- Sugar, Cotton and other agriculture products: Farmers need to be paid for their work, traders need to benefit and publci should get products at cheap prices. A hard business to handle.
Even if we look at current government, they are facing inflation problem due to wrong policy decision. They made policies to impress votebank, but these policies have resulted into havoc that is affecting economy of country.
If we see Agriculture and Oil prices are directly related with each other.
The business cycle of Agriculture is:
Plant (Need tractors that require Diesel to run)
Irrigation (Require Engines that needs diesel)
Harvest and thrasing ( require machines that need diesel)
Transport (Require vehicles that run on Diesel or petrol)
So you increase the fuel prices, agriculture good become costly.
Really a tough nut to crack.