Do u think Government should encourge...?

Question

MERGERS BETWEEN COMPANIES?.....

Answer 1

Governments should be uninvolved in the process, except possibly to insure an adequate supply of essential goods such as medicine and food at competitive prices. Otherwise, the government may have a role in insuring competition, but it should be minimal at most. Generally, governments propose mergers in corporations when the political cost exceeds the value of compelling firms to absorb the financial costs of some problem. For example, during the American banking crisis of the 80's the government encouraged mergers to reduce the loss to the FDIC by auctioning off failed banks to the highest bidder. The political cost of getting firms to merge was less than the combined cost to the FDIC, the unemployment of closing banks and damage to communities who lost financial institutions.

Answer 2

It is not the business of governments to encourage or discourage mergers. It must remain neutral to be a fair government.