7.4e Political and Legal: Regulation, Impact of Policy on Infrastructure and Trade Flashcards
Infrastructure definition
The physical assets underpinning the UK’s network for transports, energy generation and distribution, electronic communication, solid waste management, water distribution and water treatment
How does infrastructure spending have a positive effect on economic growth?
By increasing productivity and attracting investment
Where is the UK ranked in the world for infrastructure?
8th
Why is the UK not ranked in the top 5 in the world for infrastructure?
Slow political decision making
What can failure to invest in infrastructure have a significant negative impact on?
Economic growth
Why do governments need to have some control over the business environment?
In order to achieve social and economic objectives
What is government intervention?
The use of the policies which outline the provision of education, healthcare, housing, economy, legislation, unemployment, benefits and taxes
What type of economy is the UK?
A mixed economy
Who are regulators appointed by and why?
By the government to oversee how a market works and the outcomes that result for producers and consumers
Who is the regulator for communication and postal?
Ofcom
Who is the regulator for gas and electricity?
Ofgem
Who is the regulator for railways?
ORR
Who is the regulator for air traffic and airport?
CAA
Who is the regulator for water and sewage?
Ofwat
Example of Ofcom using their powers
Ofcom told BT that they have to allow competitors to use their telegraph poles more easily as they are not creating a competitive enough environment.
