Government policy
Summary
Every country has a government, and the government is responsible for creating all the rules and regulations that govern a particular country. In the case of industries, the government has laid down some rules and regulations that ensure that the industries follow the right procedures in conducting their businesses. Every industry has its own rules and regulations, and in this case, the engineering industry has some standards that the government has set as guidance for the engineering business. In most cases, industrialization has often been hindered by the policies provided by the government. The engineering industry has not been left behind, and it is one of the sectors affected by this kind of hypothesis.
Tax is the most common policy that has affected most industries in each country around the world engineering industry included. High taxes have influenced the development of the engineering industries because when they try to import raw materials or their products, the government is there to ask for taxes. Most engineering industries do not have access to raw materials in their countries; therefore, they often import them from other countries at fair prices. The problem comes when the raw materials, arrives and the revenue authority of the particular country is there to demand the taxes. The taxes might be higher to the extent that the company doubles the price that it bought the raw materials with. Don't use plagiarised sources.Get your custom essay just from $11/page
On the other hand, engineering industries affected by the higher taxes from the government during the selling and marketing of their products. This has mostly affected the demand and supply chain of the engineering industries. The customers and the industry is affected by the taxes at the same time. For instance, when an engineering industry has an international client, both the client and the industry will be taxed to the completion of the business. This has made many clients to shy away from doing business internationally.
Opinion
Reading this part of the article that talked about the problem of government policy was very informative because I gained more knowledge of how the taxes have affected the engineering industry. Taxes are not a new thing because it has existed as far as we can remember, and while growing up, we would often listen to our parents complaining about paying unending taxes. The same applies to the engineering industry. The engineering industry is based on bulky commodities and mostly exported or import, depending on the type of business transaction.
After reading about this problem, I came to learn why some companies that have been doing well in the export and import business shut down. Sometimes it is not about lack of supply or demand that results in shutting down of a company. Other times the policies that the government has put into action that scares industries from conducting their businesses. This is what is happening to the engineering industries, as described by the article. According to a study done, about 4% of engineering companies shut down for about a year ago due to high taxes from their countries. Taxes force the industries to pull strings that are not supposed to be pulled, and for the industry to shut down, it means that they have been pushed into a corner they are not able to escape from. From the information I got from the reading about the problem of government policy, I can conclude that if issues of taxes are loosened a little bit, then the many engineering industries will prosper around the world.
Reaction
The author, in writing about this problem mentioned that most countries had hiked their taxes with regards to the functioning of the engineering industries. Engineering industries are responsible for many construction activities around the world, and they are also involved in the creation of the tools used for construction. Despite playing a very vital role in the improvement of the infrastructure and the growth of the economy, the government still has the nerves of imposing high taxes on the industries.
As the author mentioned, the high taxes made most of the engineering industries to fall after some time. The government tend to take advantage of the industries because they conduct most of the import and export activities around the country. From my point of view, I think the company should support the engineering industries instead of contributing to their fall. For the issue of importation of raw materials, the government should tax less because the product that will come out from the raw materials will be useful in building the country’s infrastructure.
On the other hand, I feel that there are some things that the author left behind concerning the issue of government policies. For instance, government policies have limited investors from other countries from investing in the engineering industries in the country. Some investors come with plans that will ensure the thriving of the engineering industries, but the laws provided by the country limits them from unleashing these plans. This has contributed to the constant stagnation of many engineering industries around the world.
Importance
Government policies in some situation are critical because it enables the industries around the country to follow the right procedures of conducting their businesses. Some companies and industries have dominated the market for a long time, and they tend to take advantage of this dominance. The policies provided by the government ensures that such a situation does not take place in any instance. For this, we appreciate the government for coming up with these rules and regulations that govern the industries.
However, there are policies such as those for taxes that have to exploit the industries by imposing higher taxes. The engineering industries have suffered a lot concerning the issue of higher taxes because they are forced to pay taxes that are almost higher than what they get from the business. To this, I think the engineering industries around the world should sign a petition to lower taxes concerning any international activities that concern the engineering industries. If this goes through, most engineering industries that do importation of raw materials will have an easy time in conducting their businesses.
In general, the government should be the ones at the forefront in helping the engineering industries become prosperous. As mention above, engineering industries play a vital role in the growth of the country’s economy by improving the infrastructure. Therefore if they are given a smooth environment to operate in, then it is a guarantee that the country will benefit a lot from its activities.