Role of Government: Consumer Safety
Although the government’s intervention in business is often seen as a hindrance to effective economic relationships, the importance of governmental regulations and their impact on business should not be underestimated. For instance, governmental regulations serve to protect the rights and safety of consumers, who may otherwise be affected by companies’ economic choices negatively. For example, the standards for product quality set by the government and reinforced by local authorities are critical for facilitating the well-being of consumers by ensuring that products do not contain unhealthy or even hazardous constituents (Singla et al. 28).
The described role of the government is especially important in the food industry, where the well-being of buyers hinges on the choices that organizations make in regard to their production process and raw materials (Singla et al. 29). Thus, when guided by good intentions and having a good understanding of the market, companies operating in it, and other stakeholders involved in the industry, the government plays a crucial role in setting the necessary boundaries and controlling quality.
Responses to Posts
Katelyn: Role of Government
The role of government in business is to intervene in case of market failure, regulate natural monopolies and prevent others from forming, and enforce the laws and regulations that have been set forth. The government uses different tools in order to influence the economy, by either putting money in and causing people to spend more or by “taking money out,” raising taxes and causing people to spend less.
The government has a rather large influence over business as it has created several agencies to deal with all the various markets in our economy, from alcohol, FDA, and more. The government can also control the imports coming into the country using tariffs or quotas. These are generally used to protect domestic production, allowing them to sell more products at a higher price, therefore increasing GDP. However, this does not necessarily lead to long-term growth in the economy. Monopolies, aside from natural, can be despairingly bad for the consumer and the economy. When one company takes control over the majority or entire market, it allows them to drive prices up; this is why the government has regulations to prevent this.
Response
The importance of addressing the cases when monopolies take over markets is, indeed, very high. The implications of the lack of governmental response may entail negative changes. For example, predatory prices for products offered by monopolies combined with the lack of agency among consumers may cause a significant drop in the economic relationships within the target setting. As a result, inequality in the roles of companies and customers will lead to an economic collapse.
Kyna: Role of Government in Business
The government exercises its rights over businesses considerably. There are regulations on businesses at the federal and state level. The government tax businesses at all levels, which results in revenue for the government. The government’s role in business protects consumers and employees in relation to purchases, contracts, and rights. The government ensures food and drugs are safe for consumption. They protect the rights of employees by making sure the working environment is safe, free from discrimination and exploitation. The government ensures fair wages for employees.
The government changes and enforces different laws to which businesses have to respond to. Flexibility is required by the business due to the ever-changing rules and policies. Government intervenes in business activities making sure everything is ethical and efficient. They control the way businesses operate against one another through Antitrust laws. These laws prevent the businesses from causing price increases to customers and make sure customers receive good products and services. I believe the role of government in businesses is important and will continue to be. It is needed for the economy to operate effectively.
Response
The vast range of aspects that the government and control have to address, including the rights of employees and buyers, compliance with the existing legal standards, and financial transactions in the target setting, makes its role and effects of its performance very important. However, state authorities should not overstep the boundaries of their power to provide companies with a chance to thrive in the selected economic setting.
Work Cited
Singla, Anuj, et al. “The Effects of Demand Pull Strategies on Sustainable Development in Manufacturing Industries.” International Journal of Innovations in Engineering and Technology, vol. 8, no. 2, 2017, pp. 27-34.