Government intervention
Written by Aisulu Tusenova | Proofread by Yasmin Uzykanova
Government intervention - where the government becomes involved in a situation to help deal with a problem
Anti-competitive practices - attempts by firms to prevent or restrict competition
Subsidiaries - companies that are at least half-owned by another company
Minimum wage - minimum amount per hour which most workers are legally entitled to be paid
Without government intervention, certain businesses could disregard essential stakeholder requirements, including: - The environment might be harmed - Workers might get little pay
Small businesses could experience excessive pressure, and customers might pay too much.
A legal framework within which enterprises can function, as well as a system of rewards and sanctions to guarantee the protection of "at-risk" populations, are the duties of government intervention.
Government Regulation of Competition
Lower barriers to entry: if barriers are reduced or removed, more businesses will enter a market, making it more competitive.
Encourage the growth of small firms: more competition will result from encouraging more small businesses to enter markets.
Introduce anti-competitive legislation:
Put an end to any methods that limit competition.
to encourage and sustain competition in markets
Keep customers' interests in mind
Ensure freedom of trade
Limit monopoly power: if monopolies exist in markets, they must be closely managed. Some businesses would find it tempting to take advantage of customers without government intervention.
Protect consumer interests: consumers want to buy quality products at fair prices and receive excellent customer service. They want accurate and clear product information. They don't want to buy products that are dangerous, overpriced, or sold with false claims. Unfortunately, some companies can exploit consumers absent government intervention through anti-competitive practices.
Control mergers and takeovers: Governments often oversee mergers and takeovers to keep the market competitive. Mergers and takeovers usually lead to less competition in the market. As a result, large mergers and takeovers may be investigated by government agencies. It can be blocked or allowed if certain conditions are met.
