Regulation and Deregulation

Regulation refers to government rules that control how businesses operate, aiming to protect consumers, ensure fair competition, and prevent harmful practices. For example, regulations might set safety standards or limit monopolies. In contrast, deregulation involves reducing or removing these government controls, allowing businesses more freedom to operate as they choose. Proponents argue that deregulation can lead to innovation and lower prices, while critics worry it can lead to exploitation or reduced quality. In international industrial economics, both regulation and deregulation significantly impact global trade, competition, and market dynamics.