Assume that the industry you wrote about in Assignment 3 wants to expand
and has to make some...

Question

Assume that the industry you wrote about in Assignment 3 wants to expand
 and has to make some long-term capital budgeting decisions. Now the 
industry is confronted with government regulations to oversee the 
merger. Write a four to five (4-5) page paper in which you:Explain
 why government regulation is or is not needed, citing the major reasons
 for government involvement in a market economy. Provide support for 
your explanation.Justify the rationale for the intervention of government in the market process in the U.S.Assume
 that the company’s is considering a merger. The possible merger 
currently faces some threats and that the industry decides on 
self-expansion as an alternative strategy, describe the additional 
complexities that would arise under this new scenario of expansion via 
capital projects.Analyze how the different forces will come 
together to create a convergence between the interests of stockholders 
and managers indicating the most likely impact to profitability. Provide
 support for your response.Use at least three (3) high-quality
 academic resources in this assignment. Note: Wikipedia and other 
Websites do not qualify as academic resources. Your assignment must follow these formatting requirements:Be
 typed, double-spaced, using Times New Roman font (size 12), with 
one-inch margins on all sides; references must follow APA or 
school-specific format. Check with your professor for any additional 
instructions.Include a cover page containing the title of the 
assignment, the student’s name, the professor’s name, the course title, 
and the date. The cover page and the reference page are not included in 
the required page length. The specific course learning outcomes associated with this assignment are:Assess how managerial economics is used in business decision making.Evaluate
 how government regulation is constraining and enabling for managerial 
decisions related to maximizing shareholder wealth.Use technology and information resources to research issues in managerial economics and globalization.Write clearly and concisely about managerial economics and globalization using proper writing mechanics.Grading for this assignment will be based on answer quality, logic / 
organization of the paper, and language and writing skills, using the 
following rubric.     Points: 250  Assignment 4: Expansion and Merger   Criteria  Unacceptable Below 70% F  Fair 70-79% C  Proficient 80-89% B  Exemplary 90-100% A   1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. Weight: 25%  Did not submit or incompletely explained why government regulation is needed, citing the major reasons for government involvement in a market economy.  Partially explained why government regulation is needed, citing the major reasons for government involvement in a market economy.  Satisfactorily explained why government regulation is needed, citing the major reasons for government involvement in a market economy.  Thoroughly explained why government regulation is needed, citing the major reasons for government involvement in a market economy.   2. Justify the rationale for the intervention of government in the market process in the U.S. Weight: 20%  Did not submit or incompletely justified the rationale for the intervention of government in the market process in the U.S.  Partially justified the rationale for the intervention of government in the market process in the U.S.  Satisfactorily justified the rationale for the intervention of government in the market process in the U.S.  Thoroughly justified the rationale for the intervention of government in the market process in the U.S.   3. Describe the additional complexities that would arise under this new scenario of expansion via capital projects. Weight: 20%  Did not submit or incompletely described the additional complexities that would arise under this new scenario of expansion via capital projects.  Partially described the additional complexities that would arise under this new scenario of expansion via capital projects.  Satisfactorily described the additional complexities that would arise under this new scenario of expansion via capital projects.  Thoroughly described the additional complexities that would arise under this new scenario of expansion via capital projects.   4. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers. Weight: 20%  Did not submit or incompletely analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.  Partially analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.  Satisfactorily analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.  Thoroughly analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.   5. Three (3) references Weight: 5%  No references provided  Does not meet the required number of references; some or all references poor quality choices.  Meets number of required references; all references high quality choices.  Exceeds number of required references; all references high quality choices.   6. Clarity, writing mechanics, and formatting requirements. Weight: 10%  More than 6 errors present  5-6 errors present  3-4 errors present  0-2 errors present

David · Accepted Answer

Expansion of Aviation Industry and Government Regulation                                                   1
Expansion of Aviation Industry and Government Regulation  
Course Name:
Date: 
Instructor’s Name:
Expansion of Aviation Industry and Government Regulation                                                   2
Introduction to government regulation 
Government regulation is a situation when there exist certain laws and restrictions which 
governs the activities of a particular business and directs how these activities need to be 
performed. These laws and restrictions are defined and enacted by the decision of senators and 
executives.  Government regulation is not a new concept in the world economy and has been 
continuing since the time of first thirteen American colonies. The purpose of government 
regulation so far has been to achieve, optimal outcome, controlling international trade, industry 
protection, or increasing tax revenue. Applying government regulation has always been a 
contentious issue because when government regulates the market, market cannot work freely and 
independently. Broadly speaking, there are two main types of government regulation; 
1. Industrial/economic regulation; the regulation of a industry’s activities or workings is 
called economic regulation. It has many forms; regulation of production methods, 
price decision, output decision or profit etc. 
2. Social regulation; social regulation are imposed to meet social objectives such as 
environment protection from pollution, poverty reduction etc. Under this type of 
regulation, firms or industries are discouraged to participate in activities that 
negatively affect the welfare of society. For example; putting cap on the greenhouse 
gas emission is a kind of social regulation.
Major reasons for government regulation/involvement into market economy 
There can be many reasons for regulating the Aviation industry. The first is public safety 
and welfare. In aviation industry, public safety is a most important aspect because even a minor 
mistake can trigger a big tragedy. Utmost attention should be given while flying and landing an 
Expansion of Aviation Industry and Government Regulation                                                   3
aircraft. So government regulation is required to oversee whether all the safety measures have 
been taken by the airlines and whether all Airlines meet the minimum safety standards.
The second reason is industry protection. Aviation industry although requires large initial 
investment to operate but later (as the number of passengers rises), it starts enjoying economies 
of scale in the operation.  In other words, aviation industry is more or less like natural monopoly. 
So if there is large competition in such industry,

Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment

Points: 250	Assignment 4: Expansion and Merger
Criteria	Unacceptable Below 70% F	Fair 70-79% C	Proficient 80-89% B	Exemplary 90-100% A
1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. Weight: 25%	Did not submit or incompletely explained why government regulation is needed, citing the major reasons for government involvement in a market economy.	Partially explained why government regulation is needed, citing the major reasons for government involvement in a market economy.	Satisfactorily explained why government regulation is needed, citing the major reasons for government involvement in a market economy.	Thoroughly explained why government regulation is needed, citing the major reasons for government involvement in a market economy.
2. Justify the rationale for the intervention of government in the market process in the U.S. Weight: 20%	Did not submit or incompletely justified the rationale for the intervention of government in the market process in the U.S.	Partially justified the rationale for the intervention of government in the market process in the U.S.	Satisfactorily justified the rationale for the intervention of government in the market process in the U.S.	Thoroughly justified the rationale for the intervention of government in the market process in the U.S.
3. Describe the additional complexities that would arise under this new scenario of expansion via capital projects. Weight: 20%	Did not submit or incompletely described the additional complexities that would arise under this new scenario of expansion via capital projects.	Partially described the additional complexities that would arise under this new scenario of expansion via capital projects.	Satisfactorily described the additional complexities that would arise under this new scenario of expansion via capital projects.	Thoroughly described the additional complexities that would arise under this new scenario of expansion via capital projects.
4. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers. Weight: 20%	Did not submit or incompletely analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.	Partially analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.	Satisfactorily analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.	Thoroughly analyzed how the different forces will come together to create a convergence between the interests of stockholders and managers.
5. Three (3) references Weight: 5%	No references provided	Does not meet the required number of references; some or all references poor quality choices.	Meets number of required references; all references high quality choices.	Exceeds number of required references; all references high quality choices.
6. Clarity, writing mechanics, and formatting requirements. Weight: 10%	More than 6 errors present	5-6 errors present	3-4 errors present	0-2 errors present