Affects the businesses through laws and regulation and showcases the costs and benefits of regulation

Live under a rule of law that protects society and supports an acceptable quality of life

Served through open participation and debate that result in effective public policy

Is not always in some countries as insurance that business will be conducted in a legitimate way

Protects managers and stockholders from being personally liable for their conduct

The law species the limits on the extent of allowable foreign ownership

Was enacted to protect the interests of the consumer from trade malpractices and from substandard or hazardous practices, promote his general welfare and to establish standards of conduct for business and industry

Aims to ensure the availability of prime commodities at reasonable prices at all time

Contains measures to protect local manufacturers from trade practices that are seen unfair. It provides relief to domestic industries when a sudden increase in imports adversely affects local industries

The 2 rationale for regulation of businesses by the government

A great number of regulations have been passed by legislatures over the last century in an effort "to level the playing field" on which businesses operate

Organizations generally established to gain control of a product market or industry by eliminating competition

The situation where one business provides a good or a service in a given market

May also be allowed by patent laws that grañt the developer of a new technology without the patent holders consent

Permitted to encourage businesses to engage in riskier research and development by allowing them to recoup their research, development and production expenses and to earn a reasonable profit

Regulations may also occur when marketing advices result in an undesirable consequences for society, such as pollution

Is necessary to ensure that all firms within an industry to do their part to minimize costs and to pay their fair share

Benefits of regulation

Tools business employ to influence the political process

Considered as the most powerful and effective tactic that businesses can use to participate in public policy decisions is direct representation through full time staff who communicate with elected officials

The process of working to persuade public and/or government officials to favor a particular position in decision making

Organizations that solicit donations from individuals and then contribute these funds to candidates running for political office

Corporate money may be channeled into candidates campaign coffers as corporate executives or stockholders personal contribution

This became popular during the time of Carlos P. Garcia. Where the policy dictates that Filipinos would have preference over non-Filipinos in receiving foreign exchange

Bait and switch is an example of deceptive selling