Long Term Investment Decision

Government Regulation

When it comes to running an organization in the United States, it is very important for companies to have all legal regulations in place before considering a merger. There is a demand for organization to merge in today’s business market, in order to stay competitive an increase profits and revenue. Blockbuster is the company that I did my last assignment on and they are considering merging with Netflix. They will need to make sure all of the necessary government regulations are in place in order to make sure the merger transitions smoothly and all legal matters are properly documented. When it comes to a merger in a company, government regulations are needed. The reason being, it is necessary for the government to get involved to help maintain the development and balance of our economy. The government is also need to provide services and protect the rights of the consumers. When it comes to the retail industry, the government is needed to make sure the interest of the public is maintained. The government must be involved in the retail industry for the competitive markets, if not, the markets would be out of control and many consumers couldn’t afford to buy the merchandise being sold. If international mergers were to come into play, there would be trading and tax policies that would need to be regulated by the government, so the international parties would have to follow the same rules and regulations as United States companies.

Intervention of Government

The market process can be a difficult process when it comes to companies merging together in the United States. The government actually focusses a lot of time on mergers of the marketplace. The government monitors the business decisions and activities that are carried out by market industry; this is a part of the government intervention process. The government must make sure the interest of the consumers are maintained so the market will remain controlled and not fail. The intervention of the government to regulate the resources and distribute the right amount of resources for the economies improvement and social welfare are also important. The debate in the United States became a little chaotic, regarding the governments intervention in the market system. They feel as if this can cause a depression or recession in the market place and cause disruption. The government doesn’t want the market place to fail and they also want to equally release resources and income in the economy. The government’s duty is to provide public goods and services, protect the health and welfare of the public, and to keep a stabilized economy. They also have duties to protect business, consumers, investors, and the environment.

Company Merger

Blockbuster is considering a