Host governments are responsible for developing and implementing laws which govern the businesses in their territories. These laws are meant to ensure that business activities are conducted in an organized manner which does not harm the local community. Laws developed and implemented by the government include competition law which focuses on abolishing monopolistic business practices.
These laws are meant to protect small businesses by creating a business environment that is fair to all individuals. The government also plays a vital role in developing and implementing the employment law which is responsible for protecting the employees from discrimination and for ensuring their safety and health at the workplace (U. S. Department of Labor, 2009). Furthermore, there are environmental laws for protecting the environment which are developed by the government agencies.
These laws are responsible for ensuring that businesses do not pollute the environment. In many countries these laws have been made tougher because of increased climate change and thus the penalties are severe for breaking these laws. Additionally, governments are responsible for issuing business permits. These permits are usually given with conditions and businesses have to adhere to the conditions or rules otherwise their licenses or permits will not be renewed.