EGT1 Task 1: Government Regulation In Business
Jacob Moser
EGT1 – Task 309.1.3
Student #000197021
EGT1 Task 309.1.3 Government regulation in business today is vital because it attempts to create a level playing field for companies competing against one another and regulate honest business practices toward the consumers. It is important to for any business to understand how government regulation affects their industry and how they intend to run their company. Industrial regulation is the government regulation of an entire industry. The purpose of industry regulation is for a an entity to watch an industry’s prices and products to make sure that they do not create a monopoly or take advantage of consumers. There are basically two kinds of regulation, price regulation and social regulation. Price regulation is regulation directed towards industries that have tendencies that may produce a monopoly. The industries that price regulation agencies monitor are: the Federal Energy Regulatory Commission (FERC), which are basically responsible for monitoring gas and oil pipelines and other energy based industries; the Federal Communications Commission (FCC), who are supposed to regulate …show more content…
The social regulatory agencies are; the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and the Equal Employment Opportunity Commission (EEOC). Social regulation is different from pricing regulation because social regulation applies to almost all firms and is not designed for the specific purpose of stopping a monopoly. One example would be when the Occupational Safety and Health Administration (OSHA) decide to issue a requirement that all workers have periodic break from work, it would apply to all firms in the United States who are under OSHA’s control. On the other hand, pricing regulation would
EGT1 – Task 309.1.3
Student #000197021
EGT1 Task 309.1.3 Government regulation in business today is vital because it attempts to create a level playing field for companies competing against one another and regulate honest business practices toward the consumers. It is important to for any business to understand how government regulation affects their industry and how they intend to run their company. Industrial regulation is the government regulation of an entire industry. The purpose of industry regulation is for a an entity to watch an industry’s prices and products to make sure that they do not create a monopoly or take advantage of consumers. There are basically two kinds of regulation, price regulation and social regulation. Price regulation is regulation directed towards industries that have tendencies that may produce a monopoly. The industries that price regulation agencies monitor are: the Federal Energy Regulatory Commission (FERC), which are basically responsible for monitoring gas and oil pipelines and other energy based industries; the Federal Communications Commission (FCC), who are supposed to regulate …show more content…
The social regulatory agencies are; the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and the Equal Employment Opportunity Commission (EEOC). Social regulation is different from pricing regulation because social regulation applies to almost all firms and is not designed for the specific purpose of stopping a monopoly. One example would be when the Occupational Safety and Health Administration (OSHA) decide to issue a requirement that all workers have periodic break from work, it would apply to all firms in the United States who are under OSHA’s control. On the other hand, pricing regulation would