Ticket 1 Enterprises (firms) field of activity and its main characteristics

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1.The need for the state regulation of the economy-
Regulation consists of requirements the government imposes on private firms and individuals to achieve government's purposes. These include better and cheaper services and goods, protection of existing firms from “unfair” (and fair) competition, cleaner water and air, and safer workplaces and products.The state strives for turning the market economy into ecologically safe one, guaranteeing the social and economic rights of the citizens, organizing the development of the science and technique progress, improving the structure and regional disproportions, ensuring the effective development of the international economic affairs. The state performs all of these activities thanks to the presence of the special state enterprise in the mixed economy as a combination of structures for its direct participation in the processes of manufacturing, distribution and exchange. A regulatory state governs the economy mainly through regulatory agencies that are empowered to enforce a variety of standards of behavior to protect the public against market failures of various sorts, including monopolistic pricing, predation, and other abuses of market power, and by providing collective goods (such as national defense or public education) that otherwise would be undersupplied by the market. Economic regulation refers to a set of restrictions or rules promulgated by government administrative agencies through rulemaking supported by a threat of sanction or a fine. The main scope for government’s regulation is to prevent markets’ failures, in other words, situations in which markets do not efficiently organize production or allocate goods and services to consumers FUNCTIONS AND OBJECTIVES

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  To enhance effective economic regulation and promote competition, innovation and investment in respect of services and facilities provided in the telecommunication, broadcasting and postal sector whilst promoting universal access to competitive, effective, reliable and affordable services and ensuring a range of diversified quality of services to meet consumer demand.
  
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  The Department also develops and designs pricing models effective tariff regulation.
  
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  Undertake interconnection regulation.
  
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  Collect and maintain database of statistics for Industry and Market Performance Reviews.
  
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  The department is also aimed at carrying out various market studies and analyses on the development of communication services in Malawi such as Market Definition and Market Power Assessments for Competition Regulation.
  
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  Conduct business and economic appraisal of licensing frameworks and applications.
  
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  Monitoring and evaluation of the Authority’s plans and activities, strategic plan development, implementation and implementation of the Balanced Scorecard (BSC) system.