Regulated industries are industries that are, in simple terms, regulated by the government. The government can set parameters for pricing, profits, quantities produced, methods of production, etc. The most common examples of regulated industries are the airline industry, railroad industry, and television broadcasting industry. Both the federal and state government can regulate industries. The government may choose to regulate an industry for a variety of reasons including prventing monopolies, keeping a low price, providing sufficient quantity, the industry is a national necessity, etc. The government can also regulate production methods and how a company uses social media. Industries that are highly monitored by the government have to be extremely critical of the content they display through social media because they must follow a strict set of guidelines when using social media.
An example of government regulation can be seen in a publically traded company. In order to avoid insider trading and selective discloser, the government can ensure that material information is released to investors and the public at the same time. Regulations can be placed on the pharmaceutical industry to insure that pharmaceutical companies follow the appropriate rules and regulations.
Authorities that specialize in the particular industry, such as the Food and Drug Administration (FDA), who monitor the health care industry, will enforce specific guidelines. The FDA ensures that drug-makers follow a particular procedure of distribution and monitor customer privacy.
© BrainMass Inc. brainmass.com May 4, 2024, 8:49 am ad1c9bdddf