Mumbo adds that public policies to control and exploitation of environment and natural resources have recently become more widespread ad these normally have an economic justification. Mcroeconomic effects of industrial relations policies, iternational business, ivestment polices and public finance aspects usually have a critical consequence for the economic performance of a business. Mnagers can as well use microeconomics knowledge when making decision on whether it is economical to campaign for or against a certain microeconomic policy. Aplying microeconomics, i could be possible to approximate the economic gain or business or an industry will suffer, i a certain amendment in microeconomic policy is undertaken (Varian, 2006).
Cearly, i deciding if it is worth campaigning for a particular microeconomic policy, bsiness managers will as well consider the cost of the political lobbying and the possibility of succeeding. Acording to Varian (2006) business managers might find various microeconomic policies more suitable if they understand the social economic reasons behind their implementation. Tus, i is beneficial to the business managers to know the reason why a certain microeconomic policy is adopted.
Vrian (2006) adds that institutional systems are of big significance for business transactions. Gvernment policies, rgulations and its administrative structures play a big responsibility in maintaining and enhancing the institutional systems of society. Fr instance, gvernment policies substantially influence the level to which community members’ value private property, te level to which people and other organizations feel duty-bound to fulfill their economic duties on time and wholly (Bowles, 2004), fr example, rgarding contracts they have undertaken. A asserted by Bowles (2004) the structure of institutions impacts economic development efficiency, to opportunities, dstribution of earnings and distribution of power within the society.
I addition, i the long –run, istitutions impact the widely-held values and norms in the society. A a result, pblic policies, wich change the institutional systems of society, cn have broad-ranging, lng-lasting outcomes. Wereas economic reforms are able to change and transform social values and norms in long term, te extent for. ..
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