The industry regulation component consists of regulations and rules that govern the practices and procedures of specific industries, businesses, and professions.
Regulatory agencies affect businesses by creating and enforcing rules and regulations to protect consumers, workers, or society as a whole.
Overall, the number and cost of federal regulations has nearly tripled in the last 25 years. However, businesses are not just subject to federal regulations. For every $1 the federal government spends creating regulations, businesses spend $45 to comply with them. They must also meet state, county, and city regulations, too. Surveys indicate that managers rank government regulation as one of the most demanding and frustrating parts of their jobs.