Question 1 – short questions
- Distinguish between free trade areas (FTAs) and customs unions.
- Why do you think trading blocs have come to dominate world trade over the last 40 years?
- What do you think are the two main advantages and two main disadvantages of trading blocs?
- Outline the likely economic effects on the UK of a decision to withdraw from the EU.
- Outline the role of the WTO in terms of trading blocs.
In May 2009 the US chip manufacturer, Intel, was fined a record £950m by the European Commission for abusing its dominant position and illegally engaging in anti-competitive behaviour against another US based chip manufacturer, AMD (Advanced Micro Devises). Intel was found guilty of offering generous rebates to a number of computer manufacturers for purchasing their chips, including Acer, Dell, and HP. Intel has roughly 70% of the global market share of chip production.
- To what extent is Intel a monopoly supplier?
- With reference to the data, explain what is meant by ‘abuse of dominant position’.
- Evaluate the effectiveness of fines as a deterrents to anti-competitive behaviour.
- To what extent could it be argued that European competition policy is simply an example of protectionism?
Stagflation is a combination of high inflation, high unemployment, and stagnant economic growth. Because inflation isn't supposed to occur in a weak economy, stagflation is an unnatural situation. Slow growth prevents inflation in a normal ...
The laissez-faire economic theory centers on the restriction of government intervention in the economy. According to laissez-faire economics, the economy is at its strongest when the government protects individuals' rights but otherwise doesn't intervene. The ...
What Is Adverse Selection? Adverse selection is a term that describes the presence of unequal information between buyers and sellers, distorting the market and creating conditions that can lead to an economic collapse. It develops ...
Explaining The K-Shaped Economic Recovery from Covid-19 A K-shaped recovery exists post-recession where various segments of the economy recover at their own rates or levels, as opposed to a uniform recovery where each industry takes the same ...
Does Public Choice Theory Affect Economic Output? Both on paper and in real life, there is a solid relationship between economics, public choice, and politics. The economy is one of the major political arenas after all. ...
Largest Retail Bankruptcies Caused By 2020 Pandemic As we know at this point, the COVID-19 pandemic has thrown major companies in the US and the world over into complete havoc. Many have filed for bankruptcy, with an ...