Alumina: Business Regulation Simulation Essay

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

Compare and contrast macro political risk with micro political risk. Discuss policies to combat their impacts on international business activities.

Two major laws that are regulated by the EPA are the Clear Air Act and the Clean Water Act. These laws, passed by Congress, give the EPA the authority to write regulations. The Clean Air Act regulates emissions of hazardous substances into the air. The set the air emissions standards in which businesses must abide by or face penalties. The Clean Water Act restricts the release of pollutants into water. The goal of both of these laws is to protect the public and provide clean drinking water and sustainable habitats for marine life. The EPA also regulates many other environmental health concerns. They regulate hazardous substances such as asbestos, lead, and mold. They also have a large role in tackling major environment

When U.S business are thinking about going abroad, they need to be aware of the other country’s laws and regulations. “All businesses must, of course, follow the laws of the countries in which they are physically present and operating. Businesses may also be required, even in their foreign operations, to continue to follow certain laws of their home country. Also, businesses operating across national borders will also be subject to international law (Tony McAdams, 2014)”.

The environmental protection agency has been stepping up its mandate of ensuring safer and better environment for not only the business operators, buts also the society as a whole. In order to achieve this goal of environmental protection, there has been the creation of environmental protection agency that has ensured that all the businesses, irrespective of their size and type, strive to ensure that the environment is protected for the benefit of current and future generations.

In my opinion we have to have environmental regulations to sustain the environment we have today. Many people claim that these regulations restrict business which I think is true and so does Melanie J. Martin in one of her articles she states “Businesses may see certain environmental laws in a negative light if they must adapt their practices and increase spending to comply with regulations.” And if a company is struggling to make it by as it is I don’t think they will survive after paying out of pocket to comply with new regulations. The laws we have in place today in Texas I think get the job done and their not to extreme.

This case study provides a brief overview of the U.S. government legislation and policy environment as well as impacts on an organization.

PPA empowered EPA (Environmental Protection Agency) to develop and co-ordinate all pollution – prevention strategies

For years, the government has been regulating citizens and subsidizing companies that they like. Each time they restrict or support a company, they hurt the free market, which then hurts the economy and like a Rube Goldberg machine the entire country is affected. The most common and harmful regulations are those set by the environmental protection agency (EPA). The EPA tries to stop natural selection and save animals through human intervention. Nearly all of the regulations have an effect on how everyone goes about their day. For example, in California the EPA saved a small fish with a minuscule population by pumping 71 billion gallons of fresh water into the ocean, this started one of the biggest droughts in California ever. The EPA

Political Risk- the unanticipated likelihood that a business’s foreign investment will be constrained by host government’s policy.

Regulations are meant to protect the environmental and consumers. They take the form of permits, package, etc

The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.

Competition, typically the most powerful external force, is increased by the advent of globalization. The number of companies and the number of countries where these companies operate and the way governments are dealing with the impacts of globalization is accelerating. The interaction of changes in government policy and business innovation has actually made globalization even faster. If a company does not become a global, it would simply be shut out of new markets. The reasons for the turmoil are numerous: a sputtering economy, increased global competition, the implementation of new technologies that displace jobs, the deregulation of certain industries, and the general

Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's