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Federal And Unitary Systems

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Comparing Costs and Benefits for Businesses for Federal and Unitary Systems
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Introduction
Every country in the world practices one form of government or the other. Major forms
of government include democratic, autocratic, monarchy or aristocracy. Regardless of the form
of government, every nation is further governed by a particular structure of authority, described
as either a federal or unitary system of government. A federal system is a decentralized structure
in which authority is shared between the central government and states or territories that make up
the country. The United States, Australia, and India are examples of federal systems. A unitary
system involves a structure where power is concentrated at the national level, though delegation
occurs in provincial regions (Perera, 2020). Examples of countries with a unitary system are
France, New Zealand, and China. The system available in any country is crucial for business
since the government plays a critical role in establishing and maintaining the environment that
businesses operate through government-business relations. This paper aims to examine benefits
and costs for business under both federal and unitary systems; case studies of Australia and New
Zealand.
Federal System
In this system, political power is shared between the national and sub-national
governments, usually referred to as states or territories. One distinguishing feature of the federal
system is that most countries practising it are characterized by large physical size (Perera, 2020).
Benefits of Federal System to Businesses
Businesses stand to benefit significantly where there's a robust policy framework and
consistent harmony among various federal regions. Federal systems allow free movement and
flow of financial capital across regional borders, enabling firms to easily attract investment
funding and tap the wealth of talent available. In the long run, the free and smooth flow of both

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1 Comparing Costs and Benefits for Businesses for Federal and Unitary Systems Student Name Institutional Affiliation Instructor Name Course Title Due Date 2 Introduction Every country in the world practices one form of government or the other. Major forms of government include democratic, autocratic, monarchy or aristocracy. Regardless of the form of government, every nation is further governed by a particular structure of authority, described as either a federal or unitary system of government. A federal system is a decentralized structure in which authority is shared between the central government and states or territories that make up the country. The United States, Australia, and India are examples of federal systems. A unitary system involves a structure where power is concentrated at the national level, though delegation occurs in provincial regions (Perera, 2020). Examples of countries with a unitary system are France, New Zealand, and China. The system available in any country is crucial for business since the government plays a critical role in establishing and maintaining the environment that businesses operate through government-business relations. This paper aims to examine benefits and costs for business under both federal and unitary systems; case studies of Australia and New Zealand. Federal System In this system, political power is shared between the national and sub-national governments, usually referred to as states or territories. One distinguishing fe ...
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