1.6 Government objectives and policies

Edexcel International Advanced Level 

1. 1.6.1  Government spending: 

   • to provide public service 

   • taxation and constraints on public spending. 

2. 1.6.2  How governments can affect business activity: 

   • infrastructure provision 

   • legislation 

   • trade policy - membership of trading blocs, tariffs. 

3. 1.6.3  The effect of interest rates on: • businesses 

• consumer spending