589-590) A natural monopoly is where one company produces a product at a lower cost to the consumer than any other company. In a natural monopoly the competition is not economic. An oligopoly is when there are several companies producing a product, instead of only one. (McConnell, 2008, pp. 455-457) They also act like a monopoly because they can control their prices.
Argument against trade protection Argument against trade protection, in another word calls it as argument for trade restriction which support for the free trade. Free trade occur when government do not attempt to restrict what its citizen can buy from another country or what they can sell to another country. With the free trade, each nation can specialization in production which they have comparative advantage than other country, and trade with other country exchange the production which they cannot produces in home nation or other country have comparative advantages in those production than us. Over the long run, each nation can more efficiency in production which spending lower prices to produce higher levels of output; Get more income, revenue and profit as increase the market place, and increase in the consumption or demand (consumer can buy their like or product at the lower price). A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor.
et powerECO204: Homework Assignment 3 1. True, False, Uncertain a. A firm that enjoys economic rents earns higher economic profits than other firms without the economic rents. b. Relative to the perfectly competitive equilibrium, the equilibrium outcome for a market dominated by a monopsonist will be higher prices and lower levels of good demanded.
In poorer countries, globalization brings the chance to sell their relatively low cost labor onto world markets. It brings the investment that creates jobs, and although those jobs pay less than their counterparts in rich economies, they represent a step up for people in recipient countries because they usually pay more than do the more traditional jobs available there. In addition to this, information via the internet is available to many people because of globalization. The case studies book mentions the specific example of the Darfur crisis. Because of globalization and the access to information, attention was able to be drawn to the cause and help put a stop to it.
Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving. This creates a supply of their own currency than a demand for its products. According to our text, Mankiw, (2007) 1. Consumers are wealthier, which stimulates the demand for consumption goods. 2.
A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers. Etisalat will also have more opportunities to invest in upcoming projects. If the opposite occurs and etisalat has low availability and higher costs it would mean, people spend less on their goods/services which would mean there’s a low
Costa Rica, according to the CIA Fact Book, has a much higher percentage of GDP due to tourism than Nicaragua. Costa Rica also owns a lower rate of unemployment than Nicaragua. While Costa Rica has a 4.6% unemployment rate, Nicaragua currently sees 5.6% of its population fall into unemployment. As previously noted, these numbers are greatly influenced by the exploitation of tourism (TWF). It is a fact that is both well documented, as well as seen through the uneducated eye, that people in Nicaragua have much a lesser amount of opportunities compared with their southern neighbors.
United States 10. Equatorial Guinea The 10 most free countries vs. the 10 least free countries Introduction Free markets or economic freedom reduce scarcity and poverty while contributing to economic efficiency and prosperity. Many countries are far more successful in achieving economic freedom than others. In order to achieve economic freedom, certain conditions must exist; without them, countries experience overwhelming scarcity and poverty (Livingstone, 2011). Some of the most known conditions necessary for a free market to operate and for a country to achieve economic freedom are: (1) the establishment and enforcement of the rule of law and secure property rights; (2) the promotion of perfect competition; (3) the need for ethical behavior; and (4) the abolishment of barriers that break down efficiency.
5) In my opinion, justice is not fully met just because the system is voluntary. Regardless of free trade being voluntary, it may occur at costs that are unfair to some people however free trade may help the disadvantaged artisans and farmers. Throughout the history of economic life, free trade has been the exception, 10 not the rule. Using protectionist measures such as monopolies11, subsidies, tariffs and quotas, governments have stopped the free flow of trade, have reduced choice and excluded potential producers from the market place. ("How fair is free trade," n.d.,
Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores. Also, it is much harder for a business enterprise to internalize if it has high transaction cost. Thus, jewelry shops can internalize at an easier way as they have comparatively lower transaction costs. Since, jewelry shops can internalize in an easier way, theoretically, they should make more money. And it is only fair that the shop that makes more money has to pay more rent.