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

Question no The existence of both cooperation and conflict between government and businesses in case of business regulations is very much prevalent. Government cooperates with an organization regarding to the fact in which it would be profitable for the business organization. However conflict arises when the government makes any delay to sanction a project of an organization. Conflict can also arise regarding the wages that are to be paid to the employees. Also certain times government uselessly interferes in the affairs of an organization.

Such activities can lead to some serious kind of conflicts.Question no.2: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)Question no.3Both 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.Question no.4: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)Question no.5: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 may be affected by the exchange rate fluctuations of other countries in which it will invest.

Also, because of language problem the U.S might not understand the policies taking place in other countries. Again, sometimes the U.S might not receive some of its capital gains because of such regulations. (Gerth, 1998)Question no.6:Regulation that aims at controlling price levels and entry to the markets can reduce growth and economic welfare. Social regulations can extensively benefit the regular number of consumers. But some of them do not meet their goals effectively and may affect living standards.

  Thus it can be seen that the cost of regulation outweighs the benefit.The advantage of regulation is that it prevents any kind of unscrupulous activity and the disadvantage is that too much of regulation hinders economic growth.Question no.7:A business can create employment opportunities for the people in backward areas where people exist below the poverty contour. It can also publish its yearly reports so as to gain the confidence of the people. It should not practice unscrupulous activities or exploit other business houses by creating an uncompetitive environment.

In this way scandals will be prevented and the living standards will be raised. However the weaknesses will still prevail since there will be some men in the organization who will create some kind of disturbance for their own profit.Question no.8:Political action committees help in maintaining stability in the society. A set of leaders is chosen who looks after the welfare of the society and looks after the harmony of the society. Question no.9:An organization should implement FSGO in order to develop effective programs to stop and identify violations of law.

It imposes harsh penalties on the employees or agents who have committed federal crimes.Question no.10 The Sarbanes – Oxley act of 2002 was implemented as a reaction to a number of accounting and corporate scandals that had taken place. The act helps in increased transparency and disclosure, which will prevent any kind of scandals. (Faulhaber, 2002)REFERENCES:1. Becker, A.D. (1994). The Clayton Antitrust Act (1914), STOLAF, available at: http://www.stolaf.edu/people/becker/antitrust/statutes/clayton.

html (accessed on June 8, 2010)2. ERC. (2005). Federal Sentencing Guidelines, Available at: http://www.ethics.org/resource/federal-sentencing-guidelines (accessed on June 9, 2010)3. Faulhaber, T.A. (2002). The Emerging Company and the SEC, retrieved on June 9, 2010 from: http://www.businessforum.com/SEC01.html 4. Gerth, J. (1998). Where Business Rules; Forging Global Regulations That Put Industry First, Business Day, New York Times, available at: http://www.nytimes.com/1998/01/09/business/where-business-rules-forging-global-regulations-that-put-industry-first.

html (accessed on June 8, 2010)5. United Nations. (December 7 2000). Enhancing social Protection and reducing vulnerability in a Globalizing world, Economic and Social Council. Retrieved on June 9,2010 from:http://www.icsw.org/un-news/pdfs/csdsocprotect.PDF