The business world, especially in America, is a capitalist in nature where private sector creates wealth through investment. In fact, market liberalization limits government interference in business activities. However, government plays a critical role in establishing, growing, and protecting American businesses. First, the government establishes the necessary infrastructure to facilitate business operations. For example, most corporations depend on effective transport systems, communication, and tranquility. The government makes policies that promote the development of such systems to create a favorable business environment.

Second, government design laws and regulations that influence business operations. Companies must follow certain bureaucratic laws when registering their business operations and during their trade (Tanzi, 2011). For example, firms that import items require quick port clearance to facilitate distribution speeds. Again, government levy reasonable taxes that allow entrepreneurs to enjoy tax-deductible expenses. Moreover, the government maintains fair trading ground for most businesses by passing laws that encourage investment.

Lastly, the government makes foreign policies that promote the progress of green field investments. External trade ties with other nations are essential for the development of businesses in America. Through American embassies and collaboration of U.S government, American business people find it convenient to carry out business activities in foreign nations. Imports and export agreements that American government makes with trading partners open marketing opportunities. The supply chain for raw materials consumed by American firms come from external sources that agree to trade through government supports. Without forgetting, both internal and external security is important for business success. Therefore, American government protects businesses from internal and external security threats.