The Effectiveness of Business Laws in the USA


Antitrust and competition laws aim at ensuring that the lowest price possible is charged for the provision of high quality services and goods customers are acquiring. The demand and supply forces in the market significantly determine, control, or influence the prices of products. However, the market is not always perfect. Entities may take over it and exploit consumers totally. Similarly, the latter may exploit businesses driving them to a closure. In such situations, companies have an impact. The competition laws allow businesses to freely place their products in the marketplace and promote them in order to attract a market share (International Trade Administration, 2013). Laws that tough on the international business allow foreign entities to conduct business activities in America due to United States based businesses explore the global market. Although some additional regulations should be implemented, the present ones are quite effective since they further competitive business practices.

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Through the competition laws, the government of the USA keeps track of business behavior in the marketplace. Necessary infrastructure is set up in such a way that local consumers have protection from greedy or over-ambitious businesses. Effective competition laws are fundamental for the development of the country as current economic theories suggest. These regulations have been evident as significant factors of inflation control. Through laws, the government can deregulate a sector and allow more companies to conduct free and fair business activities. It increases competition in the market. The government can also pit consumers on producers. The latter go against other manufacturers. In this cycle, entities work hard on producing quality products charged the lowest prices possible in order to win the hearts of consumers (Federal Trade Commission, 2013). The electronic and information technology sector has been greatly impacted by such forces and laws. For example, currently, quality personal computers cost a third of the price charged five or six years ago.

These business laws encourage service providers and manufacturers to improve their efficiency as they increase their quality response to the consumers’ needs. They also become more venturous, initiative, and innovative. Such actions optimize resource allocation at the level of a firm. It leads to further economic development (Federal Trade Commission, 2013). From a simplified perspective, manufacturers become careful when it comes to resource wastage. Due to the efficiency involved, businesses and consumers can pay less for high quality. Consumption can benefit all parties as an outcome. Adverse and beneficial effects are also evident. Competition can result in failures and entities with poor performance in the marketplace. Through capitalism, competitors become meaner, leaner, and more efficient in order to stay ahead of each other. The weak cannot survive in such an environment. Although the pressure in the USA market may drive competitors to compromising on quality, these laws have been enhanced to protect consumers.

The business laws are not formed in order to exclusively benefit consumers. They are also meant to protect businesses from a harsh competitive environment. Small businesses are the most affected when competition becomes too severe. Consumers can also negatively impact the existing entities. In many cases, the forces of demand and supply negatively affect manufacturers, producers, and retailers. The agricultural sector is the one that ought to be protected (Kerr, 2010). Farmers complain of the prices of agricultural products before they are processed and sold to consumers. The import of foreign products from China and other parts of the globe has greatly impacted the production of local products. Laws are meant to have a positive effect during such times.

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The business regulations adopted by the U.S. government relating to copyright laws and other related rights are meant to protect businesses. Owning a brand or a product allows an entity to enjoy benefits of the same. It protects competitors from each other. As mentioned earlier, the forces of demand and supply can go to the extreme (Suisman, 2010). Too high supply and low demand may drive businesses to liquidation. Low prices may be too low to meet production costs and result into losses. Laws make sure that the forces are evened in such extreme circumstances.

The black or illegal market is present in almost every country in the world. Some businesses operate illegally while others engage in illegal processes of acquiring legal products. The presence of the black market in the USA does not only have a negative impact on other legal businesses, but it is also harmful to consumers. Although most legal products acquired illegally are cheaper than others, it is not beneficial for consumers. Perishable legal goods acquired illegally through border smuggling or other means may cause health harm to consumers. From the business perspective, the illegal or black market presents unfair competition to other businesses. Business laws require implementation in such cases (Suisman, 2009).


To sum it up, the business laws in the USA have a positive impact on consumers, businesses, and the country as a whole. They are effective and protect the market from the political influence and other factors that have a negative impact on the market. They protect consumers against the negative impact of monopoly firms. Business activities in and outside the country drive the economy. Laws do not only protect businesses and consumers, but also the whole country. The ones that enhance international trade allow for the growth of local businesses and the country. Therefore, the government should implement strategies and processes, which will ensure that such laws are not only written, but are also physically implemented, and their positive impact is seen and felt.