What influence does business have on government? How much should government regulate and intervene with business? To evaluate the nexus of the two, Richard Lehne explores how government and business each rely on the effective performance of the other to meet their goals. Government depends on business to create jobs, generate revenue, promote innovation, and provide goods and services; business needs government to provide specific opportunities for firms and industries and to maintain conditions in which economic activity can flourish. Taking a decidedly comparative approach, Lehne evaluates the similarities and differences between the U.S. political economy and those of Great Britain, Germany, Japan, and the European Union. After providing rich historical context, he probes some of the most crucial dilemmas facing government and business today—including whether economic globalization threatens national sovereignty; the place of public opinion, unions, and other advocacy groups in government-business relations; and the best way to improve the international trade system. Important new coverage includes: how the Enron and WorldCom-MCI scandals illustrate major failures in regulation by both government policies and corporate governance how the regulation of cell phones in the EU and United States illustrates major differences in industrial policy how recalls on drugs such as Vioxx and Celebrex shamed the FDA and reflect the intense accountability of federal regulation for certain private industries how European business groups are gaining strength and influence on policy in the EU how regulation is used as a policy tool, specifically looking at the FCC’s tightening regulation of the media For enhanced accessibility and interest, Lehne has added several features new to the second edition: Cases in Development boxes extend the comparative analysis with key illustrations of business-government relations in developing countries, including India, Mexico, Brazil, China, and South Korea. Comprehensive glossary spotlights all key terms for each chapter. Chapter-ending summaries encapsulate the most important concepts developed in each chapter.