A country’s economic policy could also affect wages. When there are increases to a national minimum wage then this will benefit workers by allowing them to earn more money for the same work as a result. That’s usually good for the workers, but Tesco find this challenging because it increases costs. Labour costs are usually a company’s greatest expense. Some corporations will argue that they cannot compete against businesses which are located in other countries in the world offering a much lower minimum wage as a result. That can result in the business to transfer many job functions to foreign countries such as Germany as Tesco will be responding by sourcing products from countries such as China and sourcing their clothing stock from places such as India.More spending by the government can be a major help for some companies. For example, a business such as Tesco benefit when the government uses taxpayers money to spend billions on new roads, bridges and airports. This benefits Tesco as they have a wider access to different and possibly cheaper distribution channels to source their products and deliver products to consumers. This is why businesses such as Tesco spend time and effort trying to affect economic policy decisions. Usually, a government cannot increase the money spending in one area without taking money away from something else as a result. A government which has an economic policy which will be dictating more money to be spent on defence may have to reduce support for example such as building more hospitals. This action can result in less work for construction firms, which can force businesses which operate in that industry to reduce staff or freeze open positions as a result. This has implications for Tesco as more people are unemployed and so less people are buying their products so their sales and subsequent profits will decline. The government must ensure they give different policies equal attention as changing one will ultimately change another and this has implications for Tesco such as having to decrease their prices of their products and services so that people can afford to buy them.