Accounting

Running Head: LONG TERM INVESTMENT

Government Intervention

Introduction

In the economies around the world, it is very important to make sure that, the government intervention is there in the market. With the help of the government intervention, various kinds of advantages shall accrue to the organizations in the industry. The industry selected for the present paper is the retail industry. The paper shall consider the requirement of government intervention in the industry. The paper shall consider certain important things regarding the self expansion of the industry. There is a requirement to ensure convergence between the interests of the stakeholders and the managers of the organization regarding the profitability of the organization. All these things shall be taken into consideration in the present paper.

Government Involvement in the Market Economy

In the market economy, it is very important to make sure that, there is a case of involvement of the government. The first reason of government involvement in the market economy is that, the government involvement helps in making sure that, the perceived market failure is corrected (Taylor, 2006). In the market economy, it is likely that, some kinds of problems could arise in relation to the equitable distribution of income and wealth.

Regarding this situation, the government involvement will help in making sure that, there is equitable distribution of income and wealth in the economy. The short term and long term performance of the economy is also improved with the help of involvement of government in the market economy. In this way, it can be said that, it is very important to have involvement of government in the market economy.

Rationale for Government Involvement in US Market Process

The first thing which relates to the rationale of government involvement in the US market process is that, government involvement will help in making sure that, policy...