Government-Business Online Course Examines Relations

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PA 315: SPRING 2020
GOVERNMENT-BUSINESS RELATIONS
CLASS: FULLY ONLINE
CALIFORNIA STATE UNIVERSITY SAN BERNARDINO
PROFESSOR SHARON VELARDE PIERCE
PHONE: 909-537-5758
EMAIL: [email protected]
ADDRESS: Department of Public Administration, 5500
University Parkway,
San Bernardino, CA 92407-2397
OFFICE HOURS: Tuesdays 2:00-6:00 PM via Zoom or by
appointment (No face-to-face meetings)
COURSE DESCRIPTION:
The course examines government policies affecting business
development at local, state and
national levels. It discusses major international trade treaties,
trading blocs, and international

financial institutions and the impact of globalization on
government's involvement with business.
Issues regarding governance, planning and economic
development will be addressed. Topics also
covered include the ethical implications of government-business
interactions and roles; and its
applications to the government-business relations. One of the
most important parts of the course
represents the detailed discussion of the ethical implications of
government-business interactions.
Course Learning Objectives:
This course targets several important objectives.
1. Students will develop a knowledge base regarding the
foundation, concepts, principles and facts
regarding government-business interactions. Evaluated through
discussions, quizzes, writing
assignments and ethics research paper.
2. Students will develop clear understandings of the value and
significance of ethics and corporate
social responsibility within the context of government-business
interactions. Evaluated through

discussions, quizzes, exams, writing assignments and ethics
research paper.
3. Students will be able to identify and argue the rationale
behind the most important models and
theories of government-business relations. Evaluated through
discussions and writing
assignments.
4. Students will be able to analyze local and regional
macroeconomic ramifications of government
and business interactions, with a specific focus on sustainable,
strategic and economic
development. Evaluated through discussions, writing
assignments and presentation.
5. Students will develop the ability to adapt and apply
theoretical reasoning to understanding the
historical evolution of government-business interactions in
particular on such matters as delivery
of public goods, business support, partnerships, outsourcing,
contracting out as well as
collaboration in terms of regulation design and compliance.
Evaluated through discussions,
writing assignments and ethics research paper.
6. Student will develop a practical understanding of the global
ramifications of government business

relations within the context of international institutions and
such dynamics as globalization.
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Evaluated through in discussions, writing assignment and
globalization reflective essay.
7. Students will improve their critical analysis, presentation,
writing and communication skills.
Evaluated through discussions, writing assignments and
presentation.
COURSE TEXT AND MATERIALS:
• Textbook: Building Business-Government Relations: A Skills
Approach, 2016 Routledge, ISBN:
9780765640086.
• Additional required readings/videos can be accessed from
Blackboard under the various Modules.
Class Structure and Grading Scheme:
General Class Expectations:
Students are expected to complete the required readings for
each module. Given that discussions

represent a critical component of the course it is imperative that
students are prepared. One will not
receive a positive grade for the course if one does not complete
all of the required readings.
Interaction and participation are very important.
Classroom with Web Component Course:
This is a “Classroom with Web Component” course. You must
have an adequate Internet connection
or use campus student computer centers for full participation in
the course. Blackboard supports the
course (https://blackboard.csusb.edu) and must be checked daily
for announcements and course
information. Students are responsible for an active CSUSB
email address associated with
Blackboard throughout the course.
Course Assignments and Weights:
Final class grades will be determined with the following
breakdowns:
Weekly Writing Assignments (9 weeks at 5 points each) 45
Weekly Quizzes (9 quizzes at 5 points each) 45

Ethics Research paper 15
Economic Development Case Study paper 15
Economic Development Case Study presentation 15
Globalization Reflective Essay 15
Final Exam 50
Total points = 200
GRADING SYSTEM
Grades will be given based on the following point-grade scale:
190 – 200 A
180 – 189 A -
174 – 179 B +
166 – 173 B
160 – 165 B –
154 – 159 C +
146 – 153 C
140 – 145 C -

134 – 139 D +
126 – 133 D
120 – 125 D -
119 or less F
https://blackboard.csusb.edu/
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Incompletes are given at the discretion of the instructor and
only with documented circumstances. Grades will
not be rounded up when calculating final grades.
ASSIGNMENTS:
All written assignments must follow APA style and format.
Abstracts are not required.
Weekly Writing Assignments: Due weekly
Students will be required to complete a weekly writing
assignment that will require critical
thinking, reflection and application of learned materials.
Writing prompts are provided in each

module. Each writing assignment is worth up to 5 points.
Weekly Writing Assignment Rubric
Criteria
Meeting Course
Expectations
(5 – 4.25 points)
Close to Course
Expectations
Very Good
(4.25 – 3.75 points)
Below Course
Expectations
Acceptable
(3.75 - 3 points)
Not Meeting
Course
Expectations
Unacceptable
(2 - 0 points)
Content
Understanding.
Fulfilling the

requirements of
the writing
assignment
prompt.
Clear and accurate answers; insightful,
specific. Deals fully with all elements
of the writing assignment prompt. The
student understands main ideas
relevant to the materials provided in
the module. The student correctly
uses terminology and topic related
information. The student demonstrates
appropriate use of examples.
Information and knowledge are
accurate.
Meets or exceeds word count.
Overall, exceptional paper.
Ideas and arguments are
relatively clear.

Some terminology is
used correctly. The
student understands
most main ideas relevant
to the materials provided
in the module. Meets
word count. Overall,
good paper.
The student uses
most of topic
vocabulary
incorrectly. The
student shows little
mastery of main
ideas relevant to the
materials provided in
the module. Meets
word count. Overall,

poorly written paper.
Gives little
indication that the
readings were
completed. Does
not meet word
count.
Language &
Communication
Quality
The student uses correct vocabulary
and syntax. The student demonstrates
mastery of academic English without
grammatical errors.
The student uses
everyday vocabulary.
Statements not always
clearly constructed. There
is occasional vocabulary,

spelling and syntax
errors.
The student uses
language that makes
it difficult for others to
understand.
Language is abstract
or trite. There are
frequent vocabulary
and syntax errors.
Student fails to
express oneself
appropriately.
Others cannot
understand what is
being said.
There are many
vocabulary and
syntax errors.
Weekly Quizzes: Due weekly

There will be nine quizzes in this course. The format for each
quiz may include multiple choice
and true/false questions and will be designed to test recall and
application of information
covered in the textbook and readings. The quizzes will cover all
assigned weekly readings and
material covered for the week assigned. You will have 40
minutes to complete the quiz. Each
quiz is worth up to 5 points.
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Ethics Research Paper: Due Sunday, May 3rd no later than
11:59 pm
Students will have to identify and analyze an ethical dilemma
related to the government
business interaction. Write a 750 – 1000 words, double-spaced
paper, and APA style.
Students are expected to identify the key stakeholders,
discussion the implications of the
ethical dilemma, and identify available solutions through
recommendations.

Each paper should have the following sections (and only these
sections):
• Introduction
• The ethical dilemma
• Stakeholders
• Case Study Questions (each case study has a different set of
questions)
• Your recommendations
• References
Instruction for the Online Assignment: go to Ethics Research
Paper Directions and Submission
Ethics Research Paper
Rubric
Criteria Exceptional
(15 - 13 points)
Very Good
(13 – 11.25 points)
Acceptable
(11.25 – 9 points)
Unacceptable

(8 points or less)
Stakeholders
Identification of key
stakeholders and their
responsibilities to the
public in the situation
Identification of all stakeholders
and clear articulation of their
responsibilities to the public in
the situation involved
Identification of all key
stakeholders and their
responsibilities to the
public in the situation
involved
Identification of some key
stakeholders and/or their

responsibilities to the public
in the situation involved
Failure to identify key
stakeholders and/or
their responsibilities to
the public in the
situation involved
Values
Articulation of ethical
dilemma and
competing values in
the business
situation
Clear articulation of the ethical
dilemmas and identification of
all issues and values involved in
the situation
Correct identification and
description of the ethical
dilemma and the major

tradeoffs of competing
values
Some understanding of the
general ethical dilemma and
the major tradeoffs of
competing values
Little or no
understanding of the
general ethical dilemma
and the major tradeoffs
of competing values
Solution
s
Provision of feasible
and effective

solution(s) to resolve
the ethical problem
Recommending the most
feasible course of action that
would resolve the ethical
problem most effectively under
the circumstances
Recommending a
feasible course of action
that would resolve the
ethical problem
effectively
Recommending a

course of action that is
workable, but less effective
than other options/solutions
Failure to recommend
or recommending a
course of action that is
neither feasible nor
effective
Writing Word choice,
sentence variety,
grammar,
punctuation, and
spelling

Choice of language and
sentence structure; precise
and purposeful, demonstrating
a command of language and
variety of sentence structures;
control of conventions;
contribute to the writer’s ability
to communicate purpose; free
of most mechanical errors
Competent use of
language and
sometimes varies
sentence structure;
generally focused;
occasional errors do

not interfere with
writer’s ability to
communicate purpose
Developing agility in
language use, sometimes
uses weak
vocabulary or inappropriate
usage or word choice;
sentences structure tends
to be pedestrian and often
repetitious; errors interfere
with the ability to
communicate purpose
Displays frequent and
fundamental errors in
vocabulary; sentences
may be simplistic and

disjointed; errors
interfere with writer’s
ability to consistently
communicate purpose;
pervasive mechanical
errors obscure meaning
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Economic Development Case Study Paper & Presentation: Due
Sunday, May 17thby 11:59 pm
The Economic Development Case Study is a two-part
assignment – the written paper and video
presentation. Economic Development Case studies must be
posted prior to April 19th to

receive approval. Case studies are approved on first posted
basis – case studies must be unique,
and students are required to review previously posted case
studies to alleviate duplicate case
studies.
The first part of the assignment is to write a paper on a local
(San Bernardino or Riverside counties)
economic development. You may identify a case as reported
from a city’s website, local
newspapers, or other quality source. Remember, a low-quality
source, or insufficient information
from your sources, will affect the quality of your grade for this
assignment. The Economic
Development project cannot have been completed.
Your case study should be approximately 750~1000 words long.

In your case study paper, you
should briefly describe the following:
• Introduction to the economic development case
• Identify the role government played
• Identify the role of the public, if any
• Economic impact to the community – What is the economic
impact to the community? How will it
benefit or not benefit the community?
• Analysis – What is your analysis of the project?
• Conclusion – Where is the project currently?
Instructions for the case study: go to Economic Development
Case Study – Submit Here

Scoring Rubric for Economic Development Case Study Paper
Criteria Exceptional
(15 - 13 points)
Very Good
(13 – 11.25 points)
Acceptable
(11.25 – 9 points)
Unacceptable
(8 points or less)
Content
Provides an accurate and
complete description of the
case. All sources of facts

and examples are fully
documented. The case is
original. Case was approved.
For the most part,
description of the case
accurate and complete.
Most sources of facts and
examples are documented.
The case is original and
case was approved.
Description of the case is
inaccurate or incomplete.

Some sources of facts and
examples are
documented. The case is
original and was approved.
Very little reference was
made to the case. Case
is not supported by
evidence. Case is not
original and was not
approved.
Organization
Writer presents information in

logical, interesting sequence,
which reader can follow
Writer presents information
in logical sequence which
reader can follow.
Reader has difficulty
following case study
Reader cannot follow the
case organization.
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Analysis
Writer provides excellent
analysis of the role of
government and the
economic impact of the case
supported by information
provided
Writer provides good
analysis of the role of
government and the
economic impact of the

case.
Writer provides analysis of
either the role of
government or the
economic impact of the
case, but not both
Limited analysis of the
role of
government and the
economic impact
Language &
Communication
Quality
The student uses correct
vocabulary and syntax.
The student demonstrates

mastery of academic
English without grammatical
errors
The student uses everyday
vocabulary. Statements and
arguments are not always
clearly constructed. There is
occasional
vocabulary, spelling and
syntax
errors
The student uses
language that makes it
difficult for others to
understand. Language is

abstract or trite. There are
frequent vocabulary and
syntax errors.
Student fails to
express oneself
appropriately. Others
cannot understand what
is being said.
There are many
vocabulary and
syntax errors.
Length of case
study

About 750~1000 words with
substantially all
material covered and little
extraneous material.
Over 1000 words or less
than 750 words with most
of topic appropriately
covered
Over 1200 words or less
than 500 words; too much
extraneous material,

verbosity or incomplete
coverage
Over 1400 words or
less than 350
words. Overly
extraneous or
incomplete
Economic Development Case Study Presentation: Due no later
than 11:59 pm on May 17th. The
second part of the Economic Development Case Study is to
create a presentation (PowerPoint, Prezi,
etc.) and create a video of the presentation. The time frame
should be about ten minutes in length. If a
video (limit of one) is embedded within the presentation, it
cannot be longer than one minute. No voice
overs.

Scoring Rubric for Economic Development Case Study
Presentation
Criteria Exceptional (15 -
13 points)
Very Good (13 – 11.25
points)
Acceptable (11.25 – 9
points)
Unacceptable
(9 points or less)
Subject
Knowledge
Student demonstrate full
knowledge (more than

required) by answering all
assignment outline and
case study
Student is at ease and
followed the assignment
outline and is knowledgeable
about the economic
development case study
Student is uncomfortable
with information; student
followed some of the
assignment outline

Student does not have
grasp of information;
student did not follow
assignment outline
Organization Student presents
information in logical,
interesting sequence which
the audience can follow
Student presents information in
logical sequence which
audience can follow
Audience has difficulty
following presentation

because student jumps
around
Audience cannot
understand presentation
because there is no
sequence of information
Mechanics Presentation has no
misspellings or
grammatical errors
Presentation has no more than
two misspellings and/ or
grammatical errors
Presentation has three

misspellings and/or
grammatical errors
Presentation has four or
more spelling errors and/or
grammatical errors
Graphics Student’s graphics explain
and reinforce screen text
and presentation
Student’s graphics relate to
text and
presentation
Student occasionally
uses graphics that rarely
support text and

presentation
Student uses superfluous
graphics or no graphics
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Elocution /
Eye Contact
Student uses a clear voice
and maintains eye contact,
seldom using notes
Student present in video
Student’s voice is clear.
Student maintains eye contact

most of the time but frequently
returns to notes. Student
present in video.
Student’s voice is low.
Student occasionally
uses eye contact, but still
reads most of report.
Student present in video.
Student mumbles and
speaks too quietly. Student
reads all of report with no
eye contact. Student not
present in video.

Length of
Presentation
At least ten minutes long;
no more than 15 minutes
Seven to ten minutes long Less than seven minutes
long
Less than five minutes
long
Globalization Reflective Essay: Due Sunday, May 31st no later
than 11:59 p.m.
Please answer the following question in a 500 - 750 word essay.
This assignment is meant to be a
reflective essay on the impact of globalization. APA style is
required for this assignment.

Please upload your assignment to the link under
“GLOBALIZATION REFLECTIVE ESSAY”. Essay
is worth 15 points.
ESSAY PROMPT:
Explain the impact of globalization on your own life and your
country (provide specific examples).
Provide examples of evidence of changes. Consider how
modernization and growth has affected
your consumption behavior and your thoughts. Do you support
globalization why or why not?
Essay will be graded as follows:
13 - 15 points = Excellent paper is well written, clearly answers
the items for the assignment.
11 – 12 points = Good paper but has errors in the writing.
9 – 10 points = Fine job but has writing errors and there are
some issues with the analysis.
7 – 8 points = Poor job that does not show pride in work or that
time and effort was spent.

1 – 6 points = Turned in something but does not meet the
requirements at all
0 points = Missing
EXTRA CREDIT: This is the ONLY extra credit opportunity
and is worth up to 2 points. No
additional extra credit will be provided.
Extra Credit: Introduction Post (up to 2 points): Create a post of
a minimum of 350 – 500 words introducing
yourself. Please include information about your hobbies, work
situation, your major and why you chose it,
future goals after college, and at least one topic of interest
regarding the course. Please attach at least one
personal picture (if you do not feel comfortable sharing your
personal picture, you may substitute it with any
picture that is related to your life. By Sunday, April 12th, 2020
no later than 11:59 pm.

Final Exam: Open from Friday, June 5th through Tuesday, June
9th, 2020.
The final consists of an open book multiple choice and one
essay exam. It is a timed exam and
will be two hours in length. Do not leave your test until the last
minute. You are strongly
encouraged to begin your exam no later than 6 hours before it is
due. If you encounter computer
or internet failure during your test, it is your responsibility to
have a backup plan (school computer
lab, library etc).
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Note: Accommodations will be made as necessary for students
with disabilities. Please speak to me
at the beginning of the course to make me aware of extenuating
circumstances.
Late Assignments:
Late assignments will not be accepted. Please provide ample
time to complete assignments to
ensure you turn in your assignments before the deadline. No
exceptions.
Assignments and Blackboard: Assignments will only be
accepted through Blackboard.
Assignments sent via email will not be accepted. No
exceptions.
Critical Due Dates:

Assignment Due Date Note
Weekly Quizzes Weekly Quizzes located in each module.
Weekly Writing Assignments Weekly Writing assignments
located in each module.
Extra Credit –
Introduction Post
Sunday, April 12th – 11:59
pm
Individual post submitted online
Economic Case Study Approval Sunday, April 19th no later
than 11:59 pm
Thread will be posted on Blackboard.
Ethical Case Study Sunday, May 3rd – 11:59 pm Essay to be
submitted online
Economic Development Case

Study Paper AND Presentation
Sunday, May 17th – 11:59
pm
Case study paper and Video presentation to
be submitted online
Globalization
Reflective Essay
Sunday, May 31st – 11:59 pm Individual post submitted online
Final Exam Available between Friday,
June 5th through
Tuesday, June 9th.
To be taken online. Timed exam.

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SCHEDULE OF READINGS AND ASSIGNMENTS:
Students are expected to keep current with the readings and be
prepared to complete weekly
assignments.
This syllabus is subject to change. Changes, if any, will be
announced and an updated syllabus
will be posted on Blackboard. Students will be held responsible
for all changes presented.

Module 1: April 4th – April 12th
Introduction to class, syllabus, assignments, and Blackboard
Comparing the Roles of Business and Government
• What is Economic Development?
• Ni & Van Wart, Chapter 1
What is due:
• Introduction (only extra credit opportunity)
• Weekly Writing Assignment
• Weekly Quiz
Theories about Business – Government Relations in Society
Historical and general background on government: 5 eras

What is due:
• Weekly Quiz
• Choose an Economic Development in the Inland Empire.
Government as Regulator of Business: Protection of Consumer,
Employee & Environment
Corporate Social Responsibility Ethics

What is due:
• Weekly Quiz
Module 4: April 27th – May 3rd
Business’s Involvement in Government
What is due:
• Weekly Quiz
• Ethical Case Study Analysis Paper
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Module 5: May 4th – May 10th
Economic Development
Industrial Recruitment
What is due:
• Weekly Quiz
• What is due:
• Weekly Quiz

• Economic Development Paper
• Economic Development Presentation
Public Entrepreneurs and Privatization
What is due:
• Weekly Quiz
Module 8: May 25th – May 31st
Globalization and Free Trade
What is due:

• Weekly Quiz
• Globalization Reflection Essay
Module 9: June 1st – June 7th
Examples of and Challenges for Trade Regimes in the World
Business and Global Governance
What is due:
• Weekly Quiz

Module 10: June 8th – June 12th
What is due:
• Final Exam (Open from Friday, June 5th through Tuesday,
June 9th)
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COURSE APPS
Remind App: In addition to Blackboard, I will be using a free
application called “Remind” to
send reminders (e.g., upcoming due dates), announcements, and
other important information.
Instructions for joining - Get the app by searching “remind 101”
on your app store then join with a
class code: pa315sp20. You can also join by texting
@pa315sp20 to 81010. You can also visit

https://help.remind.com/hc/enus/articles/203179887-How-do-I-
join-a-class- for a Quick Start
Guide. This service is optional (i.e., students are not required to
sign up for “Remind”); however,
it is strongly encouraged. After joining, you can choose to
receive reminder messages via text,
email, or push notification to the mobile app (or any
combination of these). “Remind” protects the
privacy of the students and instructor by keeping their phone
number hidden during messaging.
All personal information is kept private. Instructors will never
see your phone number, nor will you
see theirs.
ACADEMIC HONESTY
Students are expected to be familiar with California State

University, San Bernardino’s policy on
cheating and plagiarism. Any violations of academic honesty
will result in a failing grade in the
class. Violations will be forwarded to the University for
appropriate action. Joint/group
responses are not allowed in any written work in this class. All
postings and written assignments
must be original; cited material must be in quotation marks and
provide the source. This includes
completing class assignment for participation. Plagiarism will
result in a zero grade for the
assignment and will result in a failing grade for the class.
Please see the Academic Dishonesty
section on Blackboard for more information. For more
information, please refer to the “Academic
Regulations and Standards” in the CSUSB Bulletin of Courses
for the university’s policies.

ACCOMMODATION NEEDS
Students with documented learning disabilities or special needs
must clearly identify those
accommodation requirements at the beginning of the quarter.
Students with personal/work- related
needs should contact the instructor before the class or during
the first week to see if they are
resolvable. For additional information, please contact Services
to Students with Disabilities (SSD)
at (909)537-5238 (voice), (909)537-7230(TTY), or fax (909)
537-7090. The Office of Services to
Students with Disabilities is committed to providing eligible
students accommodations that ensure
equal access to learning and equal opportunity for academic
success.

ONLINE MATERIALS AND SECTIONS USED IN
BLACKBOARD:
All students must be able to access Blackboard to participate in
this class. Some of the elements
of Blackboard that will be used are:
• Announcements: I will post important comments, adjustments
to the schedule or
syllabus, class feedback, etc.
• Syllabus: the syllabus will be placed here.
• Meet Your Instructor: information of your instructor.
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• Modules & Assignments: weekly modules will hold video
lectures, reading, and
assignments for the week.
• Economic Development Case Study Forum: you are required
to submit your
proposed economic development case here.
• Zoom Room: any Zoom sessions or meetings will be
conducted here
• I have a question…: if you have any questions, please submit
here and I will attempt
to answer within 12-24 hours.
• Remind App: information to sign up for the Remind App.
• Tools: you can access Announcement, Messages, Roster
(access to your

classmates’ homepage), email (emails to the instructor sent out
here will get my
priority in response), and My Grades (you can get your grades
as they are posted) in
this section.
• Blackboard Help: technical assistance resources
Other help numbers: If you are having problems with your
Blackboard account or need
information about how to use a Blackboard function call: 537-
3395.
ADMINISTRATIVE DROPS IN THE FIRST WEEKS OF
CLASS
“Students who fail to attend two consecutive class meetings
during the first two weeks of

the term without contacting the faculty member or making
special arrangements may be
dropped.” (University policy)
LATE ADDS AND WITHDRAWAL FROM CLASS
Late adds are allowed within the first week but students are
fully responsible for the work and
assignments missed if they do add late. Official withdrawal
must occur directly with the
registrar; the instructor has no responsibility for dropping you.
Withdrawal is allowed through
the end of the third week of the semester (Census). The College
routinely denies late drops
(after census) without documentation.
For more information, please refer to the “Academic
Regulations and Standards” in the

CSUSB Bulletin of Courses for the university’s policies.
PA 315
GOVERNMENT
BUSINESS
RELATIONS
CHAPTER 1
California State University San Bernardino
College of Business & Public Administration
Professor Sharon Pierce
DEFINING

GOVERNMENT-
BUSINESS
RELATIONS
Business Government relations –
how the public and private sectors interact in
their numerous complementary, cooperative, and
conflicting roles.
RELATIONSHIP BETWEEN
GOVERNMENT AND BUSINESS
https://iedunote.com/government-business-
relationship
Government = ensure economic stability and growth vs. Private
Business
= profit

GOVERNMENT BUSINESS
RELATIONS
• Major factors shaping the relationship:
• Mix of strategies used for implementation of public
policy
• Monetary policy
• Fiscal policy
• Amount of government protection of society’s most
vulnerable
• The amount of promotion of the business sector
domestically
• The influence of the private sector on government
policy making and administrative actions
MIX OF STRATEGIES USED FOR
IMPLEMENTATION OF PUBLIC POLICY

• government ownership
• partial ownership (government corporations or government
backed
corporations or state-owned enterprises)
• public- private partnership (P3s) is a contractual arrangement
between
a public agency (federal, state or local) and a private sector
entity –
which the government has been using a great deal more in the
several
administrations
• contracting out - These types of activities include contracting
out with
for-profit vendors, non-profit organizations, and local
government
agencies from other jurisdictions to continue the delivery of
public goods
and services
• procurement – secures purchases

• tax incentives
• regulations
MONETARY POLICY
FISCAL POLICY
• Fiscal Policy - is considered any changes the government
makes to the national
budget in order to influence a nation's economy.
• Trump - Tax Cuts and Jobs Act
• Obama – in 2010 – the affordable care act
• Bush – in 2008 – create policies to counteract the 2008
financial crisis
• Clinton – 1996 he cut spending the TANF program or what
was considered welfare

• Reagan – Reaganeconomics – he based his policies on the
theory of supply side
economics that says increased production drives economic
growth – tax cuts and deregulation
• Gives incentives to businesses to expand while removing
restrictions to encourage growth
WHY GOVERNMENT AT ALL?
• The need for government, however, does not
mean that government itself cannot
• Underperform
• Perform very badly
• One purpose of this class: provide tools for fair
analysis of success and weakness of government
in general, and the role it plays with its roles with
business.

WHY GOVERNMENT AT ALL?
• Hobbes: Without government life would be
“continual fear, and danger of violent death; and the
life of man, solitary, poor, nasty, brutish, and short.”
• What government does, in the modern world is
enormous and its contribution is indisputable. Can
you imagine a world in which…
• All airplanes have “flyer beware signs” because there are
no safety regulations, except there would be no one to
enforce such signage!
• All roads would be private roads and most would be toll
roads!
• You would need to pay for fire protection or the fire truck
would not put out your fire (as it was in colonial times)!
And so on.
DEBATE ABOUT THE

ROLE AND SIZE OF
GOVERNMENT
HISTORICAL BACKGROUND ON
GOVERNMENT
TWO DISTINCT
INTELLECTUAL TRADITIONS
• Adam Smith
• The Market-oriented tradition
• Government lacking the
qualities
• Nonintervention by the state
• Freely operating markets.

• Alexander Hamilton
• The active government tradition
• Associated with mercantilism
• Government controlling all aspects
of economic activity
• Aiding fledging industries by
providing economic assistance and
tariff protection.
LAISSEZ-FAIRE VERSUS
ACTIVIST GOVERNMENT
APPROACHES• Laissez-faire: “leave
it alone” or less
government is better
• Adam Smith
Friedman (Supply side
economics)

• Best examples today:
Anglo-countries,
Switzerland, Singapore
activist approach
lexander Hamilton
economics, e.g.,
countercyclical
spending, social and
physical
infrastructure, etc.)
in corporatist
economies of East
Asia (i.e., strong state
involvement)
THE RELATIVE SIZE OF

GOVERNMENT
RELATIVE SIZE: EMPLOYEES
(ABSOLUTE NUMBERS)
Local government
employees – almost
24 million
State Government
employees – almost 8
million
Federal government
employees – about 2
million
WHY IS OUR GOVERNMENT
DEBT GROWING?
• Complex societies place greater
demands on government

• Wars and other national calamities
• Many special interests are successful
in finding a place in the public sphere
over time.
LIMITS OF GOVERNMENT
EXPANSION
• The natural aversion to taxes is seemingly universal.
• As governments become larger and occupy more of the
economy, the more they can become political targets if
they are not successfully managed.
THE MOST BASIC ROLES OF
GOVERNMENT
•Defense
•Public safety

8 GOVERNMENT-BUSINESS ROLES
• Fiscal structure
• Regulator
• Safeguard against risks
• Provider of infrastructure
• Purchaser
• Social architect
• Service provider
• Promoter of business
THE GOOD, THE BAD,
AND UGLY OF
GOVERNMENT

THE GOOD… (GENERALLY
STRENGTHS)
• Providing a stable financial system
• Providing a social contract for a stable society
• Public welfare
• “The commons”: shared goods like roads
• International and domestic safety
• Reducing risk
• Shared social infrastructure, e.g., K-12 education
THE BAD… (GENERALLY
WEAKNESSES)

• When governments take over areas completely
and become monopolies (or dictatorships)
• Government corruption
• When government takes on too much and gets
over-extended
• Becoming excessively complex, e.g., tax code
• Dealing with special interests over time
• Inefficiency over time
THE UGLY… (IMPORTANT THINGS THAT
GOVERNMENT DOES BUT EITHER ARE NOT
UNDERSTOOD OR APPRECIATED)
• Taxes: necessary but hated (excessive taxes are
bad but then we must decide what “excessive taxes” means)
• Foreign aid (example of necessary

item that is hated)
• Government doing the unpleasant
jobs, like prisons
AMERICAN
GOVERNMENT
INSTITUTIONS
How many governments do we
have in the United States of
America?
# OF GOVERNMENTS IN US
WHAT DOES THE FEDERAL
GOVERNMENT DO?

WHAT ABOUT CALIFORNIA STATE
GOVERNMENT?
WHAT ABOUT CALIFORNIA LOCAL
GOVERNMENTS?
BIG GOVERNMENT
VS.
SMALL GOVERNMENT –
WHICH IS IDEAL FOR THE
UNITED STATES?
FACTORS
AFFECTING
THE ROLE

AND SIZE OF
GOVERNMENT
• 1. Population Density – government
grows larger as the population grows
larger
• 2. Size and Complexity of the Economy
– in the US – early 20th century less
industrialized and more agriculture
• 3. Interaction with Other Countries -
globalization
• 4. Social Goals and Beliefs – basic
needs of food, shelter, and clothing
need to be met. Also – employment,
good schools, retirement
The role, reach, and
impact of
government is
directly affected by a
range of factors:

WHAT IS THE IDEAL
GOVERNMENT?
• QUESTION –
• What do you
believe is the
ideal role of
government?
HOPE YOU ALL HAVE
A GREAT WEEKEND!
PA 315 Government Business Relations Chapter 1Defining
Government-Business RelationsRELATIONSHIP BETWEEN
GOVERNMENT AND BUSINESSGovernment business
relationsMix of Strategies used for implementation of public
policyMonetary policyFiscal PolicyWhy government at
all?Slide 9Debate about the Role and Size of
GovernmentHistorical Background on GovernmentTwo distinct
intellectual traditionsLaissez-Faire versus Activist Government
ApproachesThe relative Size of GovernmentRelative size:

employees (absolute numbers)Why is our government debt
growing?Limits of government expansionThe most basic roles
of government8 government-business rolesThe good, the bad,
and ugly of governmentTHE GOOD… (GENERALLY
STRENGTHS)THE BAD… (GENERALLY WEAKNESSES)THE
UGLY… (IMPORTANT THINGS THAT GOVERNMENT DOES
BUT EITHER ARE NOT UNDERSTOOD OR
APPRECIATED)American Government Institutions# of
governments in USWhat does the federal government do?What
about California state government?What about California local
governments?BIG GOVERNMENT VS. SMALL
GOVERNMENT – WHICH IS IDEAL FOR THE UNITED
STATES?Factors affecting the role and size of governmentWhat
is the ideal government?Hope you all have a great weekend!

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