Expansion and Merger

Topics: Stock market, Mergers and acquisitions Pages: 4 (1518 words) Published: December 13, 2012
Expansion and Merger

ECO 550

Explain why government regulation is needed, citing the major reasons for government Involvement in a market economy. It is vitally important for all companies and organizations to be sure the required government and legal regulatory authorities are involved anytime a merger or expansion is in the works. There is a wide-range of requirements that authorizes the government to intervene in any action that could lead towards a merger and/or acquisition. This is beneficial for the organization involved because if any mishaps occur the government could take legal actions against the organization involved. There are also specific laws in the case of an international merger. There are certain tax and trading policies that should be practiced in order to regulate as well as help make a smooth transition. This is also done in order to make sure the system is aligned so that all the beneficiaries will consistently follow the same policies, procedures and regulations. Justify the rationale for the intervention of government in the market process in the U.S. One of the most multifaceted processes associated with mergers and acquisitions in the United States is the market processes. This is why the government has a motive for focusing on mergers and acquisitions of the market processes. The government will also intercede in order to regulate the resources and allocate the right amount of the resources for the improvement in the economies and social welfare. The government’s goal is to improve and correct the failures that have been taking place all over the market, and to distribute the resources and the income equally in the market place. The government also intercedes in the market process with the intention to improve and enhance the performance of the economy (Harding, 2007). The government intercedes in the market process in two ways, firstly the government can put legislations and regulations in place, and...
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