The legal or regulatory frameworks affecting marketing are at different stages around the world; different priorities...

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Operations Management

The legal or regulatory frameworks affecting marketing are atdifferent stages around the world; different priorities andinfluences are at work. Explain their impact on marketing in KSA oryour region, and how companies are reacting to the laws orregulations.

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Government regulation of economic and social activities permeates our lives While regulation in many instances yields important public benefits regulations often are imposed on individuals and organizations with too little thought or analysis of what is gained in comparison with the losses incurred in time money indecision and productivity Further the growth of government involvement in the market system sometimes constrains our ability to achieve fundamental economic and social goals Regulations are indispensable to the proper function of economies and societies They create the rules of the game for citizens business government and civil society They underpin markets protect the rights and safety of citizens and ensure the delivery of public goods and services At the same time regulations are not costless Businesses complain that red tape holds back competitiveness while citizens complain about the time that it takes to fill out government paperwork Moreover designing and enforcing regulations also requires resources for government and public administrations Regulations can also have unintended costs when they become outdated or inconsistent with the achievement of policy objectives Government regulations are more likely to improve rather than impede the performance of the economy when they adhere to broad economic principles rather than impose narrow statutory rules Principlesbased regulatory approaches have the advantage of being more adaptable to changes in economic conditions and economic opportunities as new markets develop in the economy and particular businesses rise or fall in response to appropriate price signals Admittedly the lack of specificity in principlesbased regulations can allow unintended behaviour to be characterized as compliant On the other hand whereas a highly prescriptive rulesbased approach makes it harder for businesses and regulators to fudge compliance such brighterline regulations can become so specific and tailored to the situation of the moment that they can easily become obsolete or even counterproductive particularly from a public interest or societal perspectiveas the economy evolves They can also be specifically designed to favour incumbent businesses as well to the detriment of new business formation and the innovation and productivity growth of the overall economy The case for a highly specific rulesbased regulatory system is that in our litigious society laws and rules must fully cover every contingency lest the clever manipulate the system to take unfair advantage Even sound and wellintended rules this perspective would contend could leave enormous and debilitating uncertainty until all of those contingencies were resolved perhaps even in court However we believe that the benefits of a more concise principlesbased approach are substantial enough that the nation should change its See Answer

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