Government

• Economic policy

  less direct

  Governments can implement policies that allow them to control spending

  For example, increasing tax rates to lower spending when there is too much economic activity

  Or could lower interest rates to reduce the cost of borrowing money, so people spend more → this might help to move the economy out of a recession

  Depending on the existing economic conditions, policies will expand, or contract, the level of economic activity to try and stabilise the economy
• Regulation and laws

  Direct and immediate way to influence customer behaviour

  Regulatory forces include laws, and bodies, who are responsible for enforcing these laws

  Not following these regulations can result in financial penalties that will impact profits

  For example (LAWS), The ACC 2010 impacts the marketing campaigns a business sues, as they must ensure they are honest and truthful to protect customers

  For example (regulations) → health regulation such as plain packaging for cigarettes discourages customer from buying them and age restrictions like over 18