GOVERNMENT REGULATION

Government Regulation



Government Regulation

Thesis Statement

“Business and the economy are heavily dependent on government policy.”

Introduction

The term regulation refers to a wide range of policies such as subsidies, quotas, imports, methods of public and private companies, and even creating new property rights and market-specific exchange them. The regulation refers to a way to alter the behavior of a market by enacting coercive rules that govern some aspect of production, quality attributes, and the entry and / or the price at which a well is bought and sold by others, all these instruments can be used to alter the results in all markets mentioned. The regulation broadly consists of a set of government actions to control prices, sales and production decisions of firms in an effort to prevent private companies make decisions that could affect consumer welfare and the public interest. This regulation restricts and monitors the private (mostly are private but can also do it in public) with respect to a rule prescribed in the public interest.

The regulations are the product of a comprehensive regulatory system which includes the processes and institutions through which the regulations are developed, enacted and implemented. The regulations are understood as the broad range of legal instruments and decisions, constitutions, statutes, legislation, subordinate, decrees, orders, rules, licenses, codes and even informal means-by which governments set conditions on the behavior of citizens, companies and the government itself. Regulatory systems include not only national rules but also rules developed by sub national levels of government, besides the rules developed in international processes. The definitions allow us to observe that there is no single definition for the concept of regulation. However, they all contain elements in common. The application of a regulation is the increase in social welfare or prevents the loss of it to correct the market failure which leads to government action.

Once the concept of regulation and had the basic idea of ??the implications, the question is, why regulate? The importance of regulation is viewed from two angles, one theoretical and practical, that is, because society should be interested in how it is affected by regulation.

Discussion

Importance of Regulations in Business Arena

Under present conditions, there is a strengthening of state regulation and promoting entrepreneurship, changing organizational forms of cooperation between government agencies with the private business, there are significant shifts in order, mechanism, device control, combined state and market regulation mechanisms.

The purpose of government regulation of business is to create certain conditions that ensure the normal functioning of the economy. Regulations also aim at sustainable participation of entrepreneurs of the country in the international division of labor and receive the optimal benefits from it. The Government of each country has its own objectives at each stage and is seeking their solutions available to them the methods and means in relation to the current economic situation in his country and the world economy. Therefore, the aims and objectives of state regulation are subject to change, whereas the regulatory mechanism is well worked out, although it has features in each ...