The Impact of the Global Financial Crisis on Emerging Financial Literature review

The Impact of the Global Financial Crisis on Emerging Financial Markets - Literature review Example Regulations create and establish rules that should be observed and respected by individuals, organisations or firms that operate within a particular industry or business. Anyone or any entity that does not act in accordance to the preset rules is in direct contravention of the law and is thus subject to punishment by law. The punishment to be handed down can either be in terms of fines, imprisonment or repossession of the respective business. However, in the free market, the allocation of market resources is solely on the foundation of supply and demand forces, this happens in the absolute absence of any form of government intervention. The question now becomes whether free market approach or pro-regulation approach is the best avenue to take in the Australian economy. When it is all said and done, regulation is the appropriate approach to take. This paper will endeavour to illustrate, with logical backing, why this approach is the most suitable one in the Australian perspective. Thi s paper will evaluate twelve articles, which are either for or against, the introduction of legislation to the Australian environment. ... The work by MJR Gaffikin (2005) strongly illuminates on this situation. Gaffikin notes that change in legislation might result in either an increase or decrease in the total expenses, to be incurred by the affected firms. He additionally cites the example of waste management. He explores this issue and ends up asserting that if firms are made to account for their waste management systems, many firms will have to invest more in their waste disposal mechanisms. This leads to a substantial increase in their overall operations cost. Thus, judging on this fact, then the free market approach is favoured. However, Michael gives a biased assertion that regulation aids in the creation of wealth, this is the view adopted by economists. This literal work is prejudiced in a manner that it does not back its assertions with hard facts. Nonetheless, the author has targeted the whole subject of regulation. In a situation whereby this article is the only information available on the projected impact of legislation, then the measure to be adopted would be to campaign for free market approach. However, this article does not take into factor in the general environmental effect of careless disposing of waste. When objectively analysing how the market would behave in the absence of government regulation, it is akin to analysing how children in the kindergarten would behave in the absence of their teacher. When there is no body of authority, individuals tend to act erratically as no accountability is necessitated. The thought of economy behaving this way is alarming if not depressing. This situation will favour the greedy at the expense of the good and ethical people. This is the view