ipl-logo

Should The UK Government Have Monopolies?

542 Words3 Pages

In business, competition can be defined as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.”(Wikipedia, 2014) Competition is an essential element among enterprises as it helps them to allocate resources efficiently and a prerequisite for free market economy as mentioned by Adam Smith.

Competition policies and regulatory mechanisms are used to ensure that consumers have wider range of products and services, to prevent uncompetitive practices (i.e., firms do not collude), to insure that firms follow the quality standards and safety regulations and finally, to promote legitimate and liberal competition.(Tutor2u.net, 2014) UK government competition policy has been distressed on adjusting market behaviour and especially on abuses of market power from firms acting individually in a specific market (i.e., a monopoly). In order for the UK’s government to accomplish this, they have been relying largely on legislation, also on a measure of self-regulation and persuasion. The UK government simply does not allow monopolies as they seek to promote competition unlike in the United States.(Worthington and Britton, 2009) The UK government has been using two strategies. These are privatisation and changes in legislations to …show more content…

The most significant law is Competition Act 1998. The act aims to prevent abuse of market power, there are numbers of agreements applied to this particular act. For instance, sharing business information, fixing prices, collusion of tendering and many more.(Rodger and MacCulloch, 2015) EasyJet follows the Competition Act 1998, as it operates in an oligopolistic environment it needs to be aware of its rivals in the industry. Nevertheless, sharing information with its rivals or colluding is simply illegal. Another act is Fair Trading Act 1973, this Act involves customers protection and to promote equitable

Show More
Related
322 Words | 2 Pages

The days of monopolizing, by strong arming your competition are long gone. In Chapter 8 “Antitrust” by David Cluchey and Edward David analyzed how it all began and moving forward where were going. In the late 1800s the norm was to practice common law in a free market. After the civil war, the united states experienced a substantial rapid industrialization. With the rise of a more complex economic system, came individuals that could increase their wealth by becoming powerful.

Read More
1195 Words | 5 Pages

Some of the ways Monopolies because monopolies were through both horizontal and vertical integration, These two processes were the foundation of Industrial businesses like the Standard oil company led by Rockefeller and Carnegie steel, it allowed these power houses to control the amount of competition they had and how much it cost. These companies would have the reduced processing price because they set the price then sold it at a cheaper price, putting other businesses in shambles, An example of this is in (Doc H). This apparent genius of a process made it so people could only buy their product from them, it did allow for them to fix prices for items like food, fuel.(Doc A) this did allow for a sort of comfortable lifestyle that was defined as American consumerism. Through corporations like sears in the 1870s people were able to buy luxuries through this new affordable lifestyle. (Doc I).

Read More
137 Words | 1 Pages

The Gilded Age was the period through 1868 to 1896 that came to be during Ulysses S. Grant’s presidency. This period introduced many highlights for instance, high voter turnouts and growth in entrepreneurship with names like Andrew Carnegie and Cornelius Vanderbilt dominating the business world. However, it was disgusted with many faults, for example, unethical political strategies like patronage and inhumane working conditions. Many would argue that the industrial developments during the Gilded Age brought many negative effects onto american society the growth of unethical business practices like monopolies. However, due to the increase of national wealth through the emergence of entrepreneurship in steel and shipping industries along with

Read More
1025 Words | 5 Pages

As explained by Evans, monopolies were first established under European feudalism, where lords would grant the exclusive legal right to use or produce certain goods as a means of garnering loyalty, revenue, and commercial control from their subjects (Evans, pg. 62). Evans compares this practice, eventually outlawed in England due to abuse and the collective recognition that such practices not in the common interest (Evans, pg. 63). Evans uses this historical precursor to trusts to reveal the similarly negative both government- and market-based monopolies share towards competition, and by extension, the public good, echoing Section 2 of the Sherman Anti-Trust Act

Read More
992 Words | 4 Pages

Corruption was prevalent in the United States during the 1900s. Fraud existed in major industries, such as monopolies or unsafe working conditions. Several people wanting reform wrote books and articles about the industries which made a large impact on the consumers and users of industries. This put pressure on the president to make changes in regulating these industries. Muckrakers, a group of journalists, exposed corrupt issues to the American public, which brought reform to many major industries such as oil, railroads, and government.

Read More
408 Words | 2 Pages

During the Progressive Era there were multiple of changes occurring that people became overwhelmed. New resources in the oil market, industrialization, fights for equality. There were many factory jobs, however, no one to stand up for the workers. So of course people will turn to their government for help, the power house of the country. However, even the government was picky in what they helped with.

Read More
1151 Words | 5 Pages

Monopolies in the 1900’s had immense powers in the market, and were able to have complete control because they had such power. A monopoly is the “exclusive control of commodity, market or means of production” where the “power is concentrated in the hands of a select few” (Beattie). While monopolies do get jobs done and inquire a large amount of money, their success it at the expense of the people and the power they have obtained is abused. They started off liked by small businesses because it helped with shipping costs, but eventually monopolies became too powerful. They are more hurtful to the public than helpful, and the benefits they gain from being a monopoly hurts the public, making them a collective dilemma.

Read More
990 Words | 4 Pages

The massive wealth of these monopolies permitted funding for

Read More
1434 Words | 6 Pages

Competition is good for consumers. For example, if a company has to compete with another company, they will be forced to try to create a better and cheaper product than the other. If a company is a trust, and doesn’t have to compete, they will have no reason to keep their prices low, or improve the quality of their merchandise. This is because a consumer that needs a product will be forced to buy it from the monopoly even if they aren’t happy with the value or cost of it because they have no other choice. Big corporation leaders wanted to eliminate competition.

Read More
2029 Words | 9 Pages

Throughout the past and now the present, we often refer to heroes as the ones that save the day, such as superman or batman, the people who stand up for what they believe in. When standing up for something or someone, there are always consequences, so within every decision, there are two choices: standing up or standing by. Our literature and societies issues often create great examples of what standing up and standing by construct opportunity wise, whether it is surviving the concentration camp Auschwitz, killing a friend for the good of Rome, or even taking a stand for equal pay as female athletes. Once a choice is made, no matter the decision, the outcomes will contain both positive and negative outcomes.

Read More
897 Words | 4 Pages

In addition, the department takes steps to boost competition in the economy. As Herbert Hoover once said, “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” To boost competition, the department works directly with businesses and universities to aid in development. Without competition in the market, if one company controlled everything, they could set prices at whatever they choose, which would greatly hinder the economy. As a result of better spending tax dollars and improving economic competition, the entire country

Read More
560 Words | 3 Pages

Furthermore, the monopolies got rid of the competition so there was no competitive price point. This was not fair for the commoner because the businesses could change the cost of their products and people would have to pay what they charged. The United States has tried to remove all of the monopolies starting with President Theodore Roosevelt. Today there are practically no monopolies in the United States, but in two-thousand four Microsoft was sued for a monopoly of their product Microsoft Word, this was a very rare

Read More
1680 Words | 7 Pages

In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.

Read More
1848 Words | 8 Pages

The oligopoly market is set up in a way so that competitors can survive because each is unique and there are so few competitors that they are virtually indispensable even if some ethics atrocity

Read More
1409 Words | 6 Pages

Many organisation argue that they should move away from the ideology of HSE legislation standards because of it’s many regulation(red-tape) affect the way business is done The Rt Hon Michael  Fallon et al., 2013). The reason organisation believes in a more “laissez faire” way of doing things, it that is help drives the market into a more competitive form of business in comparison to the “laissez faire” of trade Kelloway and Cooper,

Read More

More about Should The UK Government Have Monopolies?

Related Topics

Open Document