Expansion and Merger

1298 Words6 Pages
Expansion and Merger Managerial Economics and Globalization ECO550 Expansion and Merger Explain why government regulation is needed, citing the major reasons for government. Government regulation is needed to better improve the way the market economy operates. I believe some of the major reasons for the government’s involvement in a market economy are enforcing rules and regulations and for market failure. One reason for government involvement in a market economy is to maintain and enforce rules and regulations. According to Dr. Edward Younkins, By legally requiring that people behave in certain ways not in their best interests in carrying out their professional tasks, regulation can distort firms' behavior and choices. By forcing the terms of exchange, regulation requires people to transfer value directly to other people. Since the terms of a regulated exchange are coerced, they are against the judgment of at least one of the participants in the transaction. The purpose of regulation is to have government intervene in order to force an exchange that would not be agreed upon in free market. (Government Regulation: Enemy of Individualism) In the movie theater industry there also has to be rules and regulations. Some regulations that the government has imposed onto this particular industry are stated under the Americans With Disabilities Act. John Fithian, the NATO president, states that “under the Americans With Disabilities Act (ADA), our members must provide wheelchair seating for disabled patrons, assistive listening devices for patrons who are hard of hearing, wheelchair ramps, designated parking spaces, accessible bathroom construction, and many other requirements” (Survey of Exhibition Industry Practices). This, to me, is a great government regulation because I feel that everyone should be protected and treated fairly. Disabled patrons should also be
Open Document