The Clayton and Sherman Antitrust Acts were the first antitrust legislation to be enacted in the United States. Additionally, they were both passed to ensure that small and large companies compete fairly in the market economy.
Clayton Act controls unscrupulous practices, such as exclusive dealing contracts and price discrimination, which may interfere with fair competition in the market economy. Besides, this Act was implemented by the Department of Justice and the Federal Trade Commission.
On the other hand, Sherman Act was enacted to prohibit corporations from engaging in any trust, conspiracy, or contract, which may monopolize the market (Helewitz and Edwards 38).
The Federal Trade Commission (FTC) and the Department of Justice (DoJ) play significant roles in the enforcement of antitrust regulations. Moreover, Federal Trade commission handles cases that relate to unfair business practices such as monopolistic competition, deceptive advertising, price discrimination, and scams.
It also reviews the cases and mergers to check for any corporations that might engage in unfair competitions. Conversely, DoJ prosecutes persons found to violate the antitrust acts. The DoJ takes such persons to courts and files suits against them, which may lead to imprisonment or large fines (Miller and Cross 568).
The United States has effective antitrust policies that it uses to control unfair competition in its market economy. Additionally, the antitrust rules are enforced by the DoJ and FTC. The effectiveness of the policies should be based on their success in relation to the objectives they should achieve.
The U.S. antitrust policies are effective as they keep the corporations from setting unfair prices. For instance, the implementation of the policies has led to removal of the monopolies and creation of an environment in which every company has equal opportunity to compete for market resources (Utton 200).
Federal Regulatory Agencies
Apart from the FTC, there are other federal regulatory agencies in America. Some of the other agencies include the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC) and the United States International Trade Commission (USITC).
By establishing CFTC in April 1975, the United States future market could easily be controlled. Besides, creation of SEC in 1934 also led to the control of market securities. It also takes part in the enforcement of federal laws that control the securities in trade.
Creation of USITC on September 8, 1916, led to the provision of important information regarding trade in the American market. Moreover, its establishment also led to the provision of expertise who worked in the executive and legislative branches of the government (Rosati and Scott 242).
The three independent regulatory legislations, CFTC, SEC, USITC, have their own strengths and weaknesses. The CFTC is recognized for educating consumers about the future markets in the country. Conversely, it has failed to provide adequate information regarding different kinds of frauds in the market.
One of the strengths of SEC is that it interprets federal security regulations, amend and issue new laws. Additionally, it coordinates other regulatory bodies that also deal with securities matters. The last legislation, USITC, excels in analyzing industrial and economic matters.
It also investigates intellectual property-based imports. However, the USITC has not been able to provide adequate tariff and trade information. Consequently, this has made the external customers incur losses (Rosati and Scott 243).
The three regulatory legislations are effective as their operations are not in any way affected by other arms of the government. Congress is responsible for the creation of the legislation in the United States. Moreover, the president with the approval of the senate is responsible for appointing the commissions.
Members of the congress are only allowed to serve for a fixed term. Besides, they should demonstrate integrity during their services. The effectiveness of the legislations is also evident in their success as they are able to create rules that control operations of various corporations (Funk and Seamon 10).
Groundswell
Groundswell is a network in which people apply technologies to obtain what they need from one another. The main components of groundswell are people and the Internet. For instance, people use Internet to sideline the corporations and neutralize their effects in the market economy (Li and Bernoff 3).
The groundswell also uses social media like Facebook and Twitter to make corporations listen to the problems being faced by their customers. In this way, Groundswell appears to be advantageous to most people (Frazier 82).
The marketing strategy for groundswell should not only create group pages on the Internet and social media but also use them to create long-term customer relationships.
Moreover, the relationships should be based on the selling price and customer acquisition. The strategy should also convert the social opportunity created by the groundswell into marketing advantage by incorporating the community into their network (Frazier 83).
The main effect that e-commerce has on groundswell revolves around information. E-commerce allows different individuals to collect information online and use it accordingly. It also enables organizations to keep 24 hour contact with their customers as they can send new promotions and updates.
The online business is essential since business owners can make their customers visit their businesses regularly through Internet (Li and Bernoff 6).
China and its Businesses
The major strength of China lies on its ability to develop products that can be purchased by every consumer including the low income earners. The country exclusively applies renovation model to develop it companies and businesses. However, the country does not have originality in its technological innovation.
It keeps on borrowing knowledge from other countries and multinational corporations that operate in it (Collins and Block 182). There are costs and benefits that a country or corporation accrues when it does business with China. The main benefits include properly developed infrastructure and cheap man power.
The drawbacks include cultural barrier and fear of finding a market for products that originate from China due to the negative attitude that most people about them (Saxon 161). The Chinese government plays a vital role towards ensuring that business within and outside the country runs smoothly.
Firstly, the government provides ensures that infrastructures are well develop to support effective transportation. Secondly, the government provides grants and loans to corporations to help them run their businesses. Lastly, the government imports business expertise and manpower (Collins and Block 184).
China presents a number of opportunities as well as threats in the world. First, the country, through its cheaper products, creates competition with the global markets that are beneficial to consumers.
Additionally, the expanding Chinese economy continues to create employment opportunities to the country’s citizens and non-citizens (Yee 39).
However, China may end up monopolizing international markets through the cheap commodities, which it produces in abundance. The U.S. is one of the countries that may be outplayed by China if it continues to the trade in cheaper products in the markets (Yee 43).
Works Cited
Collins, Robert, and Carson Block. Doing Business in China for Dummies. New York, NY: John Wiley & Sons, 2011. Print.
Frazier, Shirley. Marketing Strategies for the Home-Based Business. Northham: Roundhouse, 2007. Print.
Funk, William, and Richard Seamon. Administrative Law. New York, NY: Aspen Publishers, 2009. Print.
Helewitz, Jeffrey, and Leah Edwards. Entertainment Law. Clifton Park, NY: Delmar Learning, 2003. Print.
Li, Charlene, and Josh Bernoff. Groundswell: Winning in a World Transformed by Social Technologies. Boston, MA: Harvard business Review Press.
Miller, Roger, and Frank Cross. The Legal Environment Today: Business in its Ethical, Regulatory, e-Commerce, and International Setting. Mason, OH: Cengage Learning, 2013. Print.
Rosati, Jerel, and James Scott. The Politics of United States Foreign Policy. Boston, MA: Cengage Learning, 2011. Print.
Saxon, Mike. An American’s Guide to doing Business in China: Negotiating Contracts and Agreements; Understanding Culture and Customs; Marketing Products and Services. Cincinnati: Adams Media, 2006. Print.
Utton, Michael. Market Dominance and Antitrust Policy. Northhampton, MA: Edward Elgar, 2003. Print.
Yee, Herbert. China’s Rise: Threat or Opportunity? London: Routledge, 2011. Print.