Competitive Strategies & Government Policies - Essay Example

Competitive Strategies & Government Policies Government policy and regulation are the ments that give guidance to decisions. The main aim of policies is to achieve the results that are rational. Policies assist the senior management in testing and making factors of decision making. Policies directly affect the automobile industry. They regulate safety, manufacturing, information about consumers and pollution (Gallagher, 2006).This paper reviews the policies and regulation that affect automobile.

The first category is factory assistance programs. It includes the programs that support manufacturing industries of automobile, marketing, and promotions. This involves marketing and supply of suitable, vehicles and motorbikes. The provisions only allow marketing of standard products that influence the increase in demand (Gallagher, 2006).The second category is safety; it inspects the general environmental safety of automobile industries. The policy checks if the rule regarding safety to employees are complied.

The safety rules also affect the restriction to mergers and trade policies. The safety of surrounding public is also considered to ensure pollution doesn’t affect their living. Another regulation is information; it regulates advertising restrictions, standard identity and classes of vehicles in terms of prices. The information directly affects consumers because they are enlightened on their rights and are protected by consumer act. All these rules guide the performance of automobile industry during their operation (Gallagher, 2006).

The government imposes taxes. The taxes help the government to regulate the foreign exchange and ensure equity in the automobile industry. Taxes help the industry to be independent so that it can grow. The percentage of tariffs is always deducted from exports. The tariff becomes government income. The taxes are imposed on imports to control dumping in a foreign country. Different tax laws provide clearance system that includes tax deduction to support domestic industries get profits.ReferencesGallagher, K. S. (2006).

Limits to leapfrogging in energy technologies? Evidence from the Chinese automobile industry. Energy policy, 34(4), 383-394.