Every country has its own regulations, laws and regulatory bodies or agencies governing the manufacturing, sales, marketing and distribution of products within the country. Laws and regulations are purposely made for human beings and other institutions as a guide to bring order and sanity into the society. Because of this, it is likely that their application will impact upon the plans of firms; their effects on a given firm are also inevitable.

An attempt would be made to discuss specified regulations and laws with particular reference to aviation and airline, environmental regulations, stock market regulations, banking regulations, research (and development) co-operation regulations, stock options regulations, labour regulations, intellectual property and social security regulations industry by industry and effects on the plans of firms where necessary.

For example, the Airport High Density Rule (HDR) in the aviation industry was considered as controversial. This rule requires that no more than 155 flights take off and land at O’Hare Airport and at three other major airports in the country between 6.45am and 9.15p.m.That restriction was expected to keep number of airline operations at O’Hare during that timeframe and also to keep the amount of noise generated by aircraft. When this failed, a law was proposed to abolish the rule.

On the tobacco industry, for example, the Food and Drug Administration (FDA), an agency of the US government published a rule on tobacco in the federal register to regulate the sale and distribution of cigarettes and smokeless tobacco to children and adolescents based on the health consequences of tobacco use. The rule specifies that anyone younger than 18years of age should not be sold cigarette and smokeless tobacco. The rule further requires manufacturers, distributors, and retailers to comply with certain conditions regarding the sale, distribution and promotion of tobacco products. Thus, vending machines and self-service displays were banned; billboards within 1,000feet of schools and playgrounds were also prohibited. This might have adversely affected firms who engage in such businesses.

In financial terms, however, the rule is expected to produce significant health-related benefits, ranging between $28 billion to $43 billion each year based on the premise that many adolescents would not start smoking because of the rule; with the FDA estimating that the rule will impose one-time costs of around $187 million.

With firms of all sizes, access to capital is of great importance especially when it comes to start-ups.Laws and regulations may affect the amount of investment available either from foreign or local investors or financial institutions. The most important regulations on capital are usually set by governments. These rules or regulations mainly affect the development of venture capital even though they are meant to guard against defaults. In the UK for example, the introduction of the business angel networks by the government to co-ordinate the flow of SME investment capital is proving successful-a positive effect. Also due to lack of access to pension fund capital in the European Union there is a limited institutional investment. In the case of the United States, most capital venture firms prefer to make investments larger than $3 million, while most entrepreneurs are unable to obtain more than $250 000 from own source and close relations.

The impact of regulations on plans of firms especially those who are technology-based limits the venture capital funding for these firms and affect what they can or intend to do and eventually limiting their capabilities to employ new hands thereby affecting the socio-economic fibre of the society. For example, some government regulations even specifies the type of investors eligible to fund venture capital because of the high risks for certain classes of investors.

In some countries, most firms’ source of financing is through the stock markets. In the UK for example apart from the London Stock Exchange, there is Alternative Investment market( AIM); purposely established to assist SMEs. Quite often, the rules on the registration, listing and IPO in terms of size, age ,profit and management set up are too costly and unnecessarily complicated for small and start-ups. This is known to hamper access to finance for most firms and invariably making it impossible for certain firms to pursue their plans and invariably their growth needs. Ghana Sugar Estate is an epitome of firms which are denied needed funding as a result of controversial restrictions on listing to the Ghana Stock Exchange. The effects of this is seen in the overgrown plantations of the newly formed sugarcane company in the Eastern Region of Ghana, loss of about £2,000 a day in revenue to the company and loss of jobs, and raw materials for most industries which depend on processed sugarcane for their work. The impact on the firms planning process is that funds will not be available to pay and maintain most of its qualified personnel.

With technology-based firms like which need constant innovations, source of financing is key to their planning and so any regulations or laws meant to provide adequate source(s) of finance is welcomed.

The NYSE has come under intense scrutiny to reform as there had been spates of irregularities in the exchange in terms of trading practices. Up till 2001, stocks traded in fractions of eighths and sixteenths i.e. 12.5 cents and 6.25cents respectively enabling a specialist buying a stock to sell to make at least 12.5cents.That has narrowed to a mere penny. This is as a result of decimalisation; a rule set up to change trading from fractions to decimals.Decimalisation reduces spread. The largest specialist firm LaBranche & Co., has been affected with a reduction of its market capitalization being halved to $474million in the past year. The effect of this regulation on LaBranche’s plans could be felt in its budget as funds might not be available. It will also have effect on its investors.

Notwithstanding this, the impact of this decimalization rule is felt on NYSE which in the long term can tear the Exchange apart thereby affecting the very people the rule seeks to eliminate that is the brokers and specialists on the floor. The effect on NYSE’s plan is to start perform its 1.4b shares daily electronically. It is believed that if NYSE does not match its rivals like NASDAQ on automatic trading, investors can take their trades elsewhere and that means a lost of huge annual fees in revenue to NYSE and possibly lost of jobs.

Until recently when it was announced on the TV a proposed credit regulation to improve transparency, the credit or loans market has been shrouded with secrecy that most firms were paying too much interest which affects their operations. Even though to the large firms the unavailability of the transparent credit regulation seem to benefit them i.e. their profit, on the whole it costs the SMEs to the extent that the US government has introduced new types of regulations that requires banks to report their lending to SMEs which are ranked and publicised by the government as a guide for potential lenders. In addition, in the United States, reforms to reduce paperwork, speed up loan approval and reduce costs have led a number of commercial banks to create new departments specialising in the origination and sale of small business advice and other guaranteed loans. At the moment some 60% of SMEs now rely on some form of bank credit.

In Ghana, the government has put in place certain regulations which are believed to be in favour of small firms like First Allied Loans and Savings Bank. This company posted a profit before tax of about $2m, a lot of money for a new bank. The impact on the plans of this firm is the recruitment of the best human resources in the industry culminating in a position to compete favourably with old and big banks in the Ghanaian banking industry.

However ,after deregulation in Britain, competition between banks and stock markets