REGULATIONVSDEREGULATION

Name: Ana Camille M. GonzalesProf: N. Isidro jr.Time/section: 4:30 6:00 pm ; FM 3a

Definitions and Effects: Regulation is a rule, principle, or condition that governs procedure or behavior. It can be distinguished as economic and social. Economic regulation deals with quality of service, energy and entry conditions in specific sectors, such as transportation or communications. Social regulations deal with issues associated with risks to health, safety, and the environment. Some regulations promote safety and quality standards while others restrict commodity supplies and set tariffs to control or limit competition. Highly regulated industries include agriculture, food and fisheries, pharmaceuticals and manufacturing.Effects of Regulation: Regulations help protect consumer interests from dishonest business practices and promote fair competition. Regulations also help employees through the various labor laws related to issues such as minimum wages, privacy of medical information, and workplace health and safety. Additionally, regulations help protect the environment from pollution and carbon footprints caused by industries. Although the intent of regulations is to protect, these laws and rules can impede economic growth, and, through subsidies, pose a burden to the government.

Deregulation is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.Additional Facts: Traditional areas that have been deregulated are the telephone and airline industries. In the late 1990s and early 2000s the utility industry (power companies) in North America started to deregulate.When the government deregulated industries such as airlines, trucking, railroads, natural gas and banking in the 1970s, the intent was to give these industries more power to build the economy and reduce the cost of government subsidies, and ultimately give consumers more benefits through competitive pricing and better quality products and services. Deregulation is sometimes confused with privatization, but the two are not the same. Each reduces government involvement, but from a different angle. Privatization transfers ownership to private companies and deregulation removes government involvement, or eliminates regulations, from private industries.It can be safely said that deregulation, with the exception of a few isolated incidences, lowers costs, improves service, and opens the industries to more efficient competitors.Effects of Deregulation: Customer-centric operations increased flight frequency, quality of food and cabin-crew service. The telecommunication industry also benefited from deregulation as consumers saw a drop in long-distance telephone rates, and businesses began to cross-sell cable television and Internet services.

Reference: http://everydaylife.globalpost.com/regulation-deregulation-6089.htmlhttp://www.worldbank.org/transport/roads/rdt_docs/annex4.pdfhttp://www.thefreedictionary.com/regulationhttp://www.investopedia.com/terms/d/deregulate.asp