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Chapter 4: Legal, Regulatory, And Political Issues - Essay Example

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Government cooperates with an organization regarding to the fact in which it would be profitable for the business organization. However…
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Chapter 4: Legal, Regulatory, And Political Issues
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Chapter 4: Legal, Regulatory, And Political Issues

Download file to see previous pages... Usually the government has always synchronized business. One of the main reasons for the founding of a federal administration was to create a more effective business regulation. For this reason it was necessary for the government to involve into the regulation and control of businesses and create a healthy and effective business environment.
The government has set down certain norms and regulations for our economic and social existence. In terms of economy the government has laid down certain policies relating to the monetary the fiscal policies and also tax policies. The government has established banks, health institutions, schools and colleges for the entire society. It looks into the fact that everybody in the society gets equal benefits and nobody is deprived. (United Nations, December 7 2000)
Both Sherman antitrust and Clayton acts were implemented to protect the businesses from the market uncompetitive ness such as monopoly market structure and cartels. (Becker, 1994). Yes, they very much exist even today.
The role and function of FTC is to protect the consumer’s interests in case of a market failure for example in monopoly when the producers exploit the purchasers by charging a high price. The FTC carries out its work by examining the issues that are raised by the reports of the consumers and business houses. The issues generally include false advertising or other forms of fraudulent activities. FTC brings both civil and criminal actions under the antitrust laws. The investigations of FTC may concentrate to a single company or to the entire industry. If they find any kind of unlawful act then they will file an administrative complaint against that company. In this way FTC avoids government regulations. (ERC, 2005)
U.S. is the most influential in the globalization of business norms. Global regulation has helped the U.S. to perform effectively by proper monitoring. The obstacles of global regulation are that the U.S ...Download file to see next pagesRead More
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