Page 211 - FM Integrated WorkBook STUDENT 2018-19

The economic environment for business

Government intervention and regulation

As well as the general policy measures to impact business operations, governments
can also take more specific measures to regulate businesses.

 competition policy – to prevent economic inefficiency, monopolies
disadvantaging consumers and unfair pricing practises (e.g. cartels) and to
encourage innovation

 provision of government assistance – to encourage economic growth through
the use of, e.g. grants and expert advice

 green policies – to encourage firms to avoid negative externalities such as
pollution

 corporate governance guidelines

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