What is the role of the private sector?
The private sector includes industry and trade dominated by private citizens unlike the state. The role of the private sector may be smaller or expansive depending on the overall social philosophy of the government in the region. The task of the private sector is generally to participate in the store and industry that results in private profit and increases economic activities.
The role of the private sector depends on the role of the public sector. Given that liberal governments tend to maintain the power to regulate and set standards for trade, the legal restrictions of the public sector to some extent control the amount of growth in the private sector. For example, China is a country that has a high level of government control in all industries, making the private sector a significantly smaller part of the economy. In the United States, however, most people are employed by a private sector because of built -in restrictions that prohibit the FROM from the private industry.
In the system where the trade is firmly inspected by the public sector, it can only be the task of the private sector to fill in gaps where the government does not meet or cannot meet the requirements. This may be legal, in which case this is usually done with the consent of the government or may be illegal, for example through trading black market. On the other hand, in the economy of the free market, the private sector operates and responds according to market changes; If the demand suddenly shoots on the feather beds, the private sector companies can initiate or move operations to satisfy this demand with the low interference from the state. Some experts suggest that the task or obligations of the private sector is to meet the needs of the public that the state does not manage.
Even in a relatively free market economy, the role of the private sector is at least partially responsible for the requirement of the sector. Although anyone can initiate a flower trade on the free market, the government may require regulatory withA, such as a license, income tax payment, and some quality protocols so that the flower shop can work legally. In general, the economies on the free market do not accept the full-time laissez-faire, or "hands off", access to the role of the private sector, but can try to create the smallest regulations to ensure consumer protection without preventing trade.
In addition to the macrocosm world of supply and demand and extensive trade, the role of the private sector also includes private assets on a much smaller scale. Households and personal finances are usually concerned about the private sector. Individual or household private enterprise is sometimes referred to as a personal private sector, while private enterprises are usually considered part of the company's private sector.