Please respond to these 2 responses in 200-250 words EACH.
Topic- The Public Sector in the Global Economy
Response 1- The public sector in the global economy is government involvement in the economy. The public sector is involved in the global economy for a number of reasons. Public policy influences a number of items such as jobs, wages, cost of goods and a number of other topics. Often times the public sector is attempting to stimulate economic growth domestically or by entering into trade agreements. Because there are so many tools at the governments disposal public policy becomes highly political and there is often contrasting view points.
Taking full advantage of market opportunities in the presence of potentially excessive government intervention is often difficult. As references in the GM in China case study, it is difficult to take full advantage of economic opportunities in markets with excessive government intervention. Uncertainty and instability in these markets creates unique hurdles and roadblocks. Creating strategies to hedge in differing emerging markets seems essential. Most countries were excessive government intervention is present are also emerging economies. This could create a first mover advantage, much like GM had in China. It also could essentially create a monopoly position depending on the situation.
Like everything where there is high return there is high risk, typically in the way of uncertainty.
Response 2- The public sector is a part of the economy that is controlled by the government. This is inclusive of government services and necessities required by all citizens. Examples of public sector jobs are city/state/federal government positions, law enforcement, city services such as police and firefighting, and park services. Much of these services are involved in policy making for the public. Government positions such as city council, police are required to set policy and enforce it for the public. This should not be controlled by private companies because it sets policies for everyone to follow. This is inclusive of private companies.
It is necessary for the public sector to get involved in global business when it comes to regulation of trade involving nations that are involved in trade agreements such as the US, Canada, and Mexico in NAFTA. NAFTA was created by the federal government to allow free trade between the nations. As well, it is necessary for the public sector to get involved to restrict trade when it comes to hostile nations by enforcement of sanctions as punishment for bad behavior.
https://www.thebalance.com/history-of-nafta-3306272
https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx
