Th3.6: ^^ Deregulation Flashcards
1
Q
What is deregulation?
A
the removal of legal barriers to entry to a previously protected market to allow private enterprises to compete
2
Q
What will deregulation do?
A
increase efficiency in the market by allowing greater competition as more firms can enter and conduct more activities than they could before
3
Q
The government can also do what to industries?
A
privatise them, which will allow for competition in the market
4
Q
However, what is bad about deregulation?
A
it can have some negative effects, leading to poor business behaviour. licenses for specific industries are necessary to ensure standards are upheld. some have argued that the deregulation of financial markets contributed mainly to the financial crisis in 2008
