You have probably heard the argument that government regulations hinder the ability of businesses to thrive and grow.
Government regulation of business is claimed to waste time and money, discourage enterprise and innovation and damage the economy.
This argument has caused many businesses to denounce regulation and constantly attempt to side-step and avoid the red-tape.
However, many of the government regulations introduced have promoted consumer and business safety, which have protected people from the dangerous and exploitative practices.
But let’s look at the question of whether government regulations really help international transactions.
Anti-Business Government Regulations
The so-called anti-trust laws of the late 19th and early 20th century have placed the US business community against any government regulation, tax increase or law. The business community has repeatedly argued that government regulation of business reduces profit and hinders efficiency.
However, many of these business regulations and law were introduced in response to business malpractice.
Most recently, the financial crisis of 2007 was caused partly by a host of damaging practices. Businesses have also been responsible for violating immigration rules, environmental pollution and undermining consumer safety.
This has resulted in a wide range of government regulations over the years. However, this paints a one-sided picture of the relationship between government and business. There are also many many pro-business government activities that are important to know about.
The government has also provided numerous programs and funding to encourage the thriving business environment.
Most significantly is the US Small Business Administration (SBA), which was set up to as a pro-business agency. The SBA provides entrepreneurs and small businesses information, training and loans to encourage enterprise.
In addition, the US Commerce Department has many nationwide and international programs to help businesses to expand international sales.
The Rule of Law
However, it’s not just government services that promote international business but also the rule of law. The rule of law is often overlooked as an important part of doing business.
However, the law provides patent and trademark protection for inventions and products. This encourages creativity and innovation and discourages fraud and theft.
The debate about whether the government should intervene in the market is fierce.
But whatever way you look at it the government invested millions of dollars in the form of the Troubled Asset Relief Program (TARP) in the financial crisis.
It’s important for every business to understand how they can take advantage of government assistance, whether it’s trademarking your product or getting advice from the SBA.
Government Regulation of Business
There is no easy answer to the question of whether government regulation of business helps or hinders international transactions. It’s better to see the government as a friend and enemy at the same time of business.
However, navigating your way through the confusing and complicated world of government regulations can be difficult.
That’s why with the help of ProGlobal Partners you can take advantage of the benefits of government while overcoming the challenges of regulation and laws. Get in touch with us today to find out more about our services.