Discussion Question #3

 
Explain the importance of the 3 main drivers to government security regulations
1. Consumer Protection
2. Stable Economy
3. Tax Revenue

 
Instructions
1) APA format
2) References
3) Body Citations
4) No Plagiarism 
5) 350 words
6) 2 responses (each 150 words)

Response#1(Veera)

 
Consumer Protection
Companies and individuals dealing in securities have specific rules and regulations they must follow. Failure to follow these rules can result in criminal and civil actions. Companies that issue securities have strict rules involving the disclosure of information that affects the value of their securities. Entities that promote consumer protection include government organizations (such as the Federal Trade Commission in United States), self-regulating business organizations (such as the Better Business Bureaus in the US, Canada, England, etc.), and non-governmental organizations that advocate for consumer protection laws and help to ensure their enforcement (such as consumer protection agencies and watchdog groups).
For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.
Stable Economy
The government can provide a stable environment for economic growth when it can be depended upon to maintain the stability of the currency, enforce and defend property rights, and provide oversight that assures private citizens that their transaction partners in the marketplace are held accountable.[1] This will allow market participants to begin putting their resources back to work in the areas where they are most beneficial. Economic and financial stability is both a national and a multilateral concern. As recent financial crises have shown, economies have become more interconnected. Vulnerabilities can spread more easily across sectors and national borders.
Promoting economic stability is partly a matter of keeping away from financial and money related emergencies, enormous swings in monetary movement, high expansion, and inordinate unpredictability in outside trade and budgetary markets. Shakiness can expand vulnerability, debilitate venture, block financial development, and hurt expectations for everyday comforts. A unique market economy essentially includes some level of instability, just as continuous basic change.
Tax Revenue
Tax revenue is the income that is gained by governments through taxation. Taxes are one of the major revenue for a country, where taxes are collected from citizens, companies, investors and so on to generate economy. There have several impacts of taxes due to economic growth whether it is positive or negative impacts. A limiting factor in determining the government budget is the capacity to tax. Per capita income (PCI) is the most often used measure of relative fiscal capacity.
An increase in total tax revenue (TTX) will encourage gross saving to increase in a country caused by an increase in GST or sales tax that reduces consumption. However, taxes on international trade (ITT) has a negative impact on gross saving, in which an increase in ITT will increase the price of imported goods and relatively expensive than domestic goods that will encourage consumption and reduce gross saving.

Response#2(Kavya Sri)

 
Introduction
Government involvement in commercial activities is always a substantive action that is geared towards efficiency in the trade. There are diversified ways through which the government may opt to regulate the activities that are being undertaken by various business organizations and individuals (Kourula et al., 2019). Besides, it is important to note that these methods of government regulation have a great impact on how the economy runs. Below are some important and significance of various drivers to government security regulations.
Consumer protection
It is very important to protect consumers against exploitative producers. In most cases, consumers suffer the challenges of exorbitant pricing of goods and services, misleading advertisement and both poor quality and quantity of products (Kourula et al., 2019). In circumstances where the government fails to regulate how producers handle consumers, it follows that these problems will continue to exist (Johnson, 2015). However, with the involvement of government in business, producers are licensed only to produce products of the right quality and quantity. Besides, consumers can enjoy realistic pricing and fact-based advertisement.
Stable economy
A stable economy is very attractive to investors such as the multinationals who contribute a lot to building the general nation (Johnson, 2015). Through the regulation of commercial activities by the government, it is possible to achieve a stable economy since there will be limited levels of smuggling of goods alongside other vices that result in instability of the economy. (Cebula, Rossi, & Clark, 2016). Moreover, when the economy is stable, it is easy for local businesses to grow significantly and contribute to an increase in the gross domestic product.
Tax revenue
The main source of government revenue is taxation. Tax is used by the government to finance various public development programs together with the overall execution of the national budget (Cebula, Rossi, & Clark, 2016). When the government gets involved in the business, it becomes easy to collect tax revenue that will eventually assist different dimensions. This driver is therefore extremely significant towards the customized type of development.