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Assignment 2-1: Government Regulation Of Business

Decent Essays
2-1.) In most cases, private businesses would prefer not have government regulate how they achieve their interests, but there are situations where private businesses benefit from some types of regulations. One of the purposes of government includes the promotion of business to grow and expand, so that its outputs and outcomes benefit all of society. This is done via a trickle down affect that includes changes to employment opportunities, community incomes, business sales and services and state revenues. Government is also mandated, through another purpose, to protect the health, safety and welfare of the public from being harmed by threats or actions from internal or external entities. Business regulation by government is a process that restrains…show more content…
This collaborative effort between government and business to provide infrastructure, access and security is to ensure confidence for all participants so that they can communicate and do business on the internet, thus providing businesses a lucrative way to obtain sales. Another way government regulation benefits businesses are by administering research programs and grants that produce knowledge in areas like medicine, agriculture and communication, business in these fields can freely apply the knowledge gained onto the products and services they provide, but under the strict oversight of a relevant administrative bodies from which the source knowledge was derived from, such as the Food and Drug Administration which is under the Department of Health and Human Services. These businesses can than expand and deliver services to the public at lesser cost to them because research and trial were done under government funding. Other ways businesses can benefit from government regulation is through rationale interventions by government to intercede in areas of market failure. One such rationale is the protection of competition. This is where government protects a market from being controlled by a business holding 90 percent of the market
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