Industrial Regulation: This is when the government steps in and takes measures that attempt to regulate the activities of a particular industry. For example, the government can place a limit on the number of vehicles that can be exported within a certain period. A company that exports beyond established limits will be breaking the law. The government uses agencies and law enforcement to ensure that the industry follows established regulations. Regulations occur because industries, if left alone without regulation, would exploit the consumer by charging high prices so as to increase their profits. Thus the government intervenes to protect the customer. Industrial regulations are also adopted by governments seeking to protect nascent local industries that lack the financial and economic advantages over large multinational companies. So the government limits the import of products manufactured by local industries so as to give them the opportunity to market and sell their products (Giorgi & Noia & Piatti, 2000). Effects of industrial regulation on the market: The market reacts differently depending on the regulatory goals and objectives. If the goal were to protect the consumer by preventing traders from raising prices, then traders could counter by reducing the level of production and thus creating a shortage. This usually happens if the manufacturers and traders do not necessarily make huge profits. If the regulations are adopted after an agreement between the various market players, then they will be accepted. As a result, the products will be sold at a fair and reasonable price, thus increasing their demand. As a result manufacturers will produce more to satisfy the huge market... of paper... commissions include: Bureau of Alcohol and Tobacco and Firearms Regulating Substance Abuse and Misuse ; equal employment commission which ensures that the hiring process is not biased; federal highway administration which guarantees the correct maintenance and good behavior of highways; Federal Maritime Commission which promotes safe travel on water; and the Federal Election Commission which promotes free and fair elections (Wikinvest). Works Cited Giorgi Di Georgi & Noia Di Carmine & Piatti Laura, (2000). Retrieved from: http://fic.wharton.upenn.edu/fic/papers/00/0024.pdfRiley Geof, (2006). Monopoly and economic efficiency. Retrieved from: http://tutor2u.net/economics/revision-notes/a2-micro-monopoly-economic-efficiency.htmlWikinvest. Government regulatory agencies. Retrieved from: http://www.wikinvest.com/concept/Government_Regulatory_Agencies