Question

Please select the most appropriate reason for the government’s increasing role in business globally

• A. Costs of production have continued to increase
• B. People's attitudes have changed
• C. Products have become very technical
• D. Competition in the marketplace has changed

Answer 1

The Correct Option is D

To determine the most appropriate reason for the government's increasing role in business globally, we must analyze each option in the context of global economic and regulatory trends.

1. Costs of production have continued to increase:
   • While increasing production costs can influence government intervention, they are not the primary reason for increased governmental roles in business worldwide.
2. People's attitudes have changed:
   • Although societal attitudes can shape policy, this is indirect and less immediate compared to economic factors.
3. Products have become very technical:
   • The increasing technical complexity of products does necessitate some regulation, but it doesn't fully explain the global increase in government intervention.
4. Competition in the marketplace has changed:
   • This option is the most accurate as shifts in global competition have prompted governments worldwide to become more involved to ensure fair practices and maintain competitive markets.
   • Examples include anti-monopoly legislation, trade policies, and market regulations to protect local industries and consumers.

Conclusively, the correct answer is Competition in the marketplace has changed because it directly accounts for the strategic role governments play in regulating and stabilizing markets amidst shifting global competition dynamics.