Tuesday, February 19, 2013

Governmental regulation vs self regulation. 2/12/13

I believe governmental regulatory agencies are more effective than self regulation. However, marketers view self regulation more favorably than government action because they have more opportunity to take part in creating guidelines. Self regulation may be less expensive than government regulation and its guidelines are generally more realistic, but such regulation generally can not ensure agreement as effectively as government agencies. Federal, state, and local regulatory agencies usually have power to enforce specific laws and some discretion in establishing operating rules and drawing up regulations to guide certain types of industry practices.

Governmental regulatory agencies are more effective because if it was self regulation, than all marketers would make it so they could save as much money as possible and be free to make as many moves as possible. It wouldn't work out in the long run because everybody would be looking out for themselves. The government is the most powerful system around and therefore overpowers any other option. The government has to step in for cases like this and has responsibility to look after everything/everyone and make regulations, even if people disagree.

What do you think businesses would be like if they were all self regulated?

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