In mixed economic system the government plays a crucial role only in specific areas, else the market is kept free. This is to say that government controls certain aspects and defines the boundaries within which free market system would operate. In certain cases it has been viewed that government intervention is there in public goods while the merit and demerit goods are controlled by the free market system (Sloman, 2013). Further if producers in free market system exploit the market, the role of government would come in. The economic systems that is employed, for the resource allocation, depends largely on the maturity and nature of the market.
Impact of fiscal and monetary policy on business organizations
Considering the effect of monetary policy on Samsung an increase in supply of money in the market will increase inflation rate in the market. In such a situation the business would be negatively impacted as the price of goods will increase. Samsung being in such an industry that is highly elastic in nature, the demand of the products of the company will come down. Samsung will be benefitted if the inflation rate is controlled (Linde, 1999). The change in monetary policy will also have an impact on the foreign exchange rate. Samsung being an international company, there will be direct impact on the financial performance of the company. The above discussion clearly highlights that fiscal and monetary policy changes have significant impact on the business of Samsung.