Almost all over the world, companies such as db train operate within the framework of market economic systems. These are characterized by the freedom of action of consumers and producers. The freedom of action of companies is restricted by the competition for the favour of consumers. Their priorities, wishes and needs change with social and economic change.
In order to guarantee the freedom of action of consumers and producers, to ensure compliance with mutual obligations and to prevent abuse of power, the state must provide a reliable legal system and make use of regulatory measures
He takes care of the necessary infrastructure and an efficient education system. The state influences the design of working conditions as well as the use of the environment. The state contributes to the prerequisites for economic activity.
Role of politics in DB business
Ultimately, politics also corrects, repairs or compensates socially undesirable consequences of economic activity. It intervenes, for example, in the event of unequal living conditions, environmental pollution and economic crises. In doing so, it can also limit the individual’s options for action, especially if they are at the expense of third parties. Thus, taxes, regulations, use or bans experienced by those affected usually as significant limitations on the freedom of action.
However, politicians and state administrations are also guided by self-interest. Under the conditions of globalization, the states are in mutual competition in the favour of capital owners. This is characterized above all by trade and investment freedoms, Politicians on the other hand, under the pressure of re-election, have to take the interests of their electorate into account.
In their capacity as employment-dependent employees, they can usually not help determine entrepreneurial decisions. But as consumers control the supply of goods through their purchase decisions and can through their voting decisions in the democratic system indirectly influencing directional guidelines for shaping the economic framework.
Politics: Competition as the engine of the DB market economy
Above all, the competition to which the companies are exposed should, according to current opinion, lead to such a functioning market. It is considered a dynamic selection process in which the competitors have the same goal.