Somtochukwu

One of the ways in which government participates in economic activities in a country is by establishing public corporations and companies. This is a direct participation.

• Another way in which government participates in economic activities in a country is by establishing joint business ventures with businessmen and organizations. This is an indirect participation. Through buying of shares in public limited liability companies, government participates in economic activities. Like private individuals, government buys shares and receives dividends.
• Provision of means of transport and communications is another way government takes part in economic activities. These transport, and communication infrastructural facilities provided by government facilitate economic activities in a country and they are called, social capital
• Another way government participates in economic activities in a country is through nationalization of industries. Through nationalization, government brings ownership and management of an industry under the control of the state.
• Futhermore, government participates in economic activities in a country through indigenization. Indigenization is a process through which government makes the indigenes of a country to participate actively in the industrial sector of their economy. Standardization of locally made goods is another way through which government participates in economic activities in a country. By so doing, government makes sure that locally made goods conform to a certain standard. Through granting of financial and material aids such as subsidies and loans to business organizations, government participates in economic activities in a country.
• The government also participates in economic activities through price and profit maximization control. This is done in order to protect consumers from exploitation. Through import monopoly, government participates in economic activities. Import monopoly is a means whereby government takes control of the importation of certain goods.
• More so, government participates in economic activities through the issuance of import and factory licences. Tax concession or tax holidays is another way by which government participates in economic activities. This is a way of allowing investors some period of not paying tax in order to attract them.
• Finally, government participates in economic activities of a country through enactment of factory and commercial laws.

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