What is governemnt regulation like in your company\'s industry? Does the governm

Question

What is governemnt regulation like in your company's industry? Does the government employ any regulation designed to ensure that competition is healthy or the rights and welfare of consumers is protected. Would you support governments breaking up companies if they become too powerful? Why or why not? Be sure to discuss how consumer and societys welfare are impacted by firms that exhibit market power? Do you think that governments should always, as a rule, reduce market power of firms that exhibit market power (in order to protect consumer welfare) or should firms be able to grow to be large and power (such as Microsoft)? Would breaking up large companies as a rule eliminate incentives to work hard

The industry topic is TD Canada

Explanation / Answer

The fact is that there are so many laws governing how comapnies must do business there is little that regulators can do. All the regulation is already in place by law.

Welfare of consumers is very much protected by various laws of the country. Consumer protection is actually highest in our country

Consumers benefit is impacted by monopolistic firms, If only one firm produces life saving drug and in absence of price control the company will make record profits, consumers would loose most and the irony is that we protect such firms by copyright laws.

Firms must be allowed to grow larger, We were never inward looking society and we compete globally, so size of firm must be huge to compete globally. Firms must be allowed to become huge and powerful but consumer protection must also be taken into consideration.

Breaking up large companies must not be considered as these firms compete globally they need the size to compete with foreign firms.

If you break up BP into 10 or 100 companies they no longer will be able to drill offshore as a small company.

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