Economic Relation of Energy (PDF)
Theory of Price Ceilings, Price and Quantity Regulation of the Crude Oil Industry
(Sprache: Englisch)
Essay from the year 2011 in the subject Economics - Micro-economics, grade: 2,0, University of Erfurt, language: English, abstract: The general market regulation involves direct government intervention in economic processes to achieve political goals or to...
sofort als Download lieferbar
eBook (pdf)
Fr. 7.00
inkl. MwSt.
- Kreditkarte, Paypal, Rechnung
- Kostenloser tolino webreader
Produktdetails
Produktinformationen zu „Economic Relation of Energy (PDF)“
Essay from the year 2011 in the subject Economics - Micro-economics, grade: 2,0, University of Erfurt, language: English, abstract: The general market regulation involves direct government intervention in economic processes to achieve political goals or to correct market failures. Regulation can be implemented through guidelines, recommendations and laws. But a government-controlled influence of the price or quantity can affect the market equilibrium to which the government policies should not be aimed at. Hence it is of utmost importance that regulation in terms of subsidies, customs, price ceilings or lower price limits are used as careful as possible without neglecting the natural market forces primarily described by Adam Smith in his book "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776).
Since people are trading they are always looking for ways to make good profit out of their goods and services. To protect their countries domestic production, governments put tolls on foreign products to reduce the imports of the latter and to support domestic products. But this import tax has a rather contradictory effect: For one the government anticipates a strong domestic production with everyone buying this product rather than a substitutable foreign product. Domestic production increases indeed, but an import tax raise the price of the domestic product and lowers the price of the foreign product. This means, an import toll is good for domestic producers (foreign consumers) but bad for domestic consumers (foreign producers). An import tax is one possibility to regulating the market. But this example raises the question of governmental goals, which need to be determined before a government enforces a regulation: Do we want to protect and promote consumers or producers?
Since people are trading they are always looking for ways to make good profit out of their goods and services. To protect their countries domestic production, governments put tolls on foreign products to reduce the imports of the latter and to support domestic products. But this import tax has a rather contradictory effect: For one the government anticipates a strong domestic production with everyone buying this product rather than a substitutable foreign product. Domestic production increases indeed, but an import tax raise the price of the domestic product and lowers the price of the foreign product. This means, an import toll is good for domestic producers (foreign consumers) but bad for domestic consumers (foreign producers). An import tax is one possibility to regulating the market. But this example raises the question of governmental goals, which need to be determined before a government enforces a regulation: Do we want to protect and promote consumers or producers?
Bibliographische Angaben
- Autor: Carsten Dümichen
- 2012, 1. Auflage, 6 Seiten, Englisch
- Verlag: GRIN Verlag
- ISBN-10: 3656299951
- ISBN-13: 9783656299950
- Erscheinungsdatum: 31.10.2012
Abhängig von Bildschirmgrösse und eingestellter Schriftgrösse kann die Seitenzahl auf Ihrem Lesegerät variieren.
eBook Informationen
- Dateiformat: PDF
- Grösse: 0.60 MB
- Ohne Kopierschutz
- Vorlesefunktion
Sprache:
Englisch
Kommentar zu "Economic Relation of Energy"
0 Gebrauchte Artikel zu „Economic Relation of Energy“
Zustand | Preis | Porto | Zahlung | Verkäufer | Rating |
---|
Schreiben Sie einen Kommentar zu "Economic Relation of Energy".
Kommentar verfassen