Why might business fear sudden changes in government policies?
Businesses need ample time to do a thorough planning hence they are not fond of the government’s random changes in their policies. It simply means that most businesses base their operations with the assumption that allow them to their strategic plans for business activities rather than carrying out activities without an idea of what might happen.
The businesses are afraid of changes in the government policies because it would affect their heavy investment causing a massive loss or collapse of the entire business. For instance, having a business idea to invest in a tourism sector within a certain country and suddenly the government changes its policies in regard to the tourism sector would result in the closure or adverse effects of the newly establish project or investment. In other terms, the changes in policies inconvenience the strategic planning and operations of the business hence discourage investors.
The risk of losing the investment applies to both the large and small scale business hence deterring the investors from any involvement in the business which is prone to the changes in the government policies. In other cases, the government may change its policy and hence classifying the kind of business in operation as illegal making it very delicate for the business people. It's therefore clear that businesses are afraid of the changes of government policies due to the negative impact associated with it.
In conclusion, government policies play a major role in business or investment in the country. In particular, it determines the direction to which the business activities should follow by creating measure or rule that needs to be adhered to be most the business. This ends up affecting the business nature and more so affecting the investors.
References
Bankert, E. A., & Amdur, R. J. (2006). Institutional review board: management and function (2nd Ed.). Sudbury, Mass.: Jones and Bartlett.
McCarthy, J. W., Smith, J. L., & DeLuca, D. (2010). Using Online Discussion Boards With Large And Small Groups To Enhance Learning Of Assistive Technology. Journal of Computing in Higher Education, 22 (2), 95-113.
