Government Regulation of the Economy

Gov’t Involvement & Global Economy

- Protection: Property Rights & Consumer Rights

- Court System for Civil Law Cases

- Contracts

- Agencies

- Enforce Laws

-FCC (TV & Radio)  -OSHA

-EPA (environment) -FAA (aviation)

  -FDA (food & drugs)

-FTC (business)

- Monopoly: controlling all of one product (aka: trust)

- No competition

- Business can name their own price = VERY BAD

- Standard Oil (1870-1911)

- Gov’t wants competition

- enforces anti-trust legislation – stops monopolies

- helps new businesses get started

- allows global trade

Global Economy (exchanging goods with other nations)

Why?

- Get goods we cannot produce

- Buy goods at a lower price (more competition)

  - Sell goods to other countries

- Create more jobs

- More buyers         More Production         More Workers

Virginia’s Economic Specialty

- Electronic Circuits, Coal, Aircraft Parts (1.3%)

Effects of Technology on the Global Economy

- Easier to exchange goods/services

- Cheaper to exchange goods/services