Competitive Strategies & Government Policies Essay

Competitive Strategies & Government Policies - Essay Example This involves marketing and supply of suitable, vehicles and motorbikes. The provisions only allow marketing of standard products that influence the increase in demand (Gallagher, 2006). The second category is safety; it inspects the general environmental safety of automobile industries. The policy checks if the rule regarding safety to employees are complied. The safety rules also affect the restriction to mergers and trade policies. The safety of surrounding public is also considered to ensure pollution doesn’t affect their living. Another regulation is information; it regulates advertising restrictions, standard identity and classes of vehicles in terms of prices. The information directly affects consumers because they are enlightened on their rights and are protected by consumer act. All these rules guide the performance of automobile industry during their operation (Gallagher, 2006). The government imposes taxes. The taxes help the government to regulate the foreign exchange and ensure equity in the automobile industry. Taxes help the industry to be independent so that it can grow. The percentage of tariffs is always deducted from exports. The tariff becomes government income. The taxes are imposed on imports to control dumping in a foreign country. Different tax laws provide clearance system that includes tax deduction to support domestic industries get