Using the Internet, or other resources, locate a current event article that relates to government regulations or antitrust activities. Prepare a paper in which you analyze the economic and ethical implications of the event. Points to consider include: market outcome, political impact on economic behavior, social diversity, technological innovation, and market structure. Clearly apply economic theory to your analysis for your selected article.
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Antitrust Activities and Government Regulation
Market has a great impact of government intervention. Government time to time determines and enforces the legal matrix to operate the market. Here the government intervenes with the use of rights, the extent and the limit of enforceable contracts, the rules of governing firms and associations and the scope of the regulations in order to shape up the economic environment. Government uses legal framework for intervention and this legal frame work evolves slowly or rapidly based on the impulse of the event. Significant price changes, quantity restrictions from foreign or domestic cause, pressing needs or changing the perceptions of needs, vast economic or technological transformation with its legal framework affect the economy as a whole.
On among the ways government intervenes the economy is the antitrust. Antitrust is an economic approach that focuses on the economic reasoning behind antitrust enforcement and examines how day-to-day business decisions may affect the potential antitrust liability. Antitrust legislation is a central tenet for the economy of U.S. and for more than a century it has shaped the face of modern capitalism and promoted the thought that the free market and economy are beneficial for both the social community and the democracy. The antitrust legislation has grown with the U.S economy and has become an essential part of most of the government economic policies.
At the present time when the economy is recovering from the slowdown government intervention with the use of antitrust legislation can be a most effective means to check the anticompetitive moves within the country. But there are few challenges that can come across while using the antitrust enforcements and these challenges are the timeliness of intervention and the globalization of antitrust concerns.
As far as the timeliness of intervention is concerned, it has a great importance for the economy. Using the antitrust enforcements has some time to get a positive return from this. Antitrust are used when the government feels that the economic condition can be better off with using such antitrust laws. It has social, economical and global impact. Whereas if we look at the globalization of antitrust concern, the antitrust enforcements has a global impact and it affects the countries engaged with the country. This is the reason the antitrust enforcements need cooperation among nation before using it. This is the reason applying antitrust has to be on timely manner and with the cooperation with the countries economically attached.
It has been found out that there are two traits of antitrust, one is the non-sector specific principles and the other is its long-term horizon. Due to these traits antitrust create political pressures to include noneconomic considerations in antitrust laws or to modify their application in practice.
Political grit is required mainly due to the achievement of long-term goals of the antitrust enforcements. But the most professional politicians used to find there political benefits with these long term goal oriented antitrust ...
The solution provides an analysis for economic and ethical implication of an event that relates to government regulations of antitrust activities.