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What is a good business environment?

What would you say when asked what a good business environment you think?


At first, I think that a good business environment is a place to ensure corporate autonomy. Let's say that there is no government regulation and that we leave everything to the market. While large companies use their own capital to make cheaper and better products, the products of smaller companies that lack capital can only differ compared to larger companies. Under these circumstances, a monopoly of large companies will occur. But what happens if the government controls too much? Whatever the firms do, firms will be bound by a regulatory framework and bound by behavior. While these circumstances do not produce monopoly of large enterprises, it is difficult to make progress.

Second, we achieve reasonable competition between companies without excessive government regulation. The market must have a framework for reasonable competition. Suppose there is only one company in the market that produces goods. Demand does not change much, but supply drops, forcing us to buy it even if it is expensive or of poor quality. From a corporate perspective, income increase without technological advancement. If this situation continues, the entity will not make any efforts to develop the technology and will be regressed. When a structure is formed that can compete with other companies, companies will try harder to sell their products in large numbers and naturally there will be price competition and quality competition. This competition will allow consumers to buy better products, and companies to make better products, which will have a combined effect. Also, it will not only increase income but also improve income distribution through productivity.

Also, our society will be able to develop when trust among the stakeholders is well established throughout society as well as the private efforts of companies.

한예지  pymgo@daum.net

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