+1-817-968-5551
+61-488-839-671
+44-7480-542904About Expert
Key Topics
Requirement
Question 1
Please read the following article:
http://www.fee.org/the_freeman/detail/deregulate-the-utilities/
Do you agree with Howard Baetjer opinion that natural monopolies should be deregulated? Discuss your personal experience with your local utilities companies. Is your local utilities market deregulated or it is serving by a natural monopoly?
Answer:
I cannot agree more with the findings and recommendations of Howard Baetjer about the monopoly privileges being given to the utilities companies. He articulated three points to be the reasons as to why the government should deregulate the pricing of the utility goods. First, he effectively punctured the ‘natural monopoly’ theory by saying that it treats markets as a static, unchanging and isolated entity and at the same time not allowing any leverages to it in the case of changes in technology. The author says, as the idea of ‘natural monopoly’ is itself wrong then establishing a monopoly by law, becomes even more flawed idea. Secondly, he argues that deregulation allows a fair competition as a result of which prices come down, and quality goes up. The author cited an example of 32 communities in the USA that were benefiting from the competition among electrical utility companies. When these competing companies were compared with monopoly electrical utilities belonging to other states, Professor Primeaux found that residents of competing electric companies were paying 33 percent lower prices while getting better service. Thirdly, he brought up the fundamental principle of free choice in the context of deregulating the prices of utilities. The consumers have the right to reject the inefficient and expensive services while patronizing the ones who are serving them better. A glaring similarity with this subject of study can be found in telecommunication industry. The cellphones used to be very expensive that too with little or no features and the call rates were too higher as well because of very limited players in the market. But because of deregulation and increased competition, mobile phone industry is booming, and consumers are benefitting from it as well(Jr., 1986).
Why stress when you can get the best economics assignment help from Allassignmenthelp.com professional experts? By following a few simple steps, you can easily access our economics assignment writing services. We have kept our order process so simple that even beginners can easily place their international economics homework help orders on our website.
Question 2
Please read Kimberly Amadeo's article 'The U.S. Trade deficit (link below). Do you agree with the statement that an ongoing trade deficit is weakening the U.S. economy and negatively affected the U.S. global competitiveness? Please provide the argumentation in the support of your position. Two posts minimum.
http://useconomy.about.com/od/tradepolicy/p/Trade_Deficit.htm
Answer:
I completely agree with the statement that the ongoing trade deficit is weakening the economy of United States. As per the views and findings of the author Kimberly Amadeo, trade deficit is extremely detrimental to the economy of any country. In this case, it is seriously damaging for the United States because the trade deficit can only be financed with debt. She adds that we are buying more than we actually make, and it only happens when countries that we are buying from are lending us the money. So, on any day they can ask us to pay the debt.
According to the expert, the countries with which we are running trade deficit are of three types. First, countries those are producing things which are cheaper than we do, such as consumer products and oil. Secondly, the countries do need the things that we are good at making such as agricultural and industrial supplies (chemicals). Thirdly, the countries with which we trade a lot, but we import more than we export (Amadeo and Amadeo, 2016).
The more damaging effect of trade deficit happening in the United States is that it could be losing its global competitiveness. Because of this factor, the companies belonging to the United States will lose their expertise, outsource more jobs and businesses and finally, the standard of living of the people will be declined.
Place Order For A Top Grade Assignment Now
We have some amazing discount offers running for the students
Place Your OrderReferences
-
Amadeo, K. and Amadeo, K. (2016). How the US Trade Deficit Hurts the Economy. [online] About.com News & Issues. Available at: http://useconomy.about.com/od/tradepolicy/p/Trade_Deficit.htm [Accessed 29 Jan. 2016].
-
Jr., H. (1986). Deregulate the Utilities | Howard Baetjer Jr.. [online] Fee.org. Available at: http://www.fee.org/the_freeman/detail/deregulate-the-utilities/ [Accessed 29 Jan. 2016].
Give your grades a boost
Just share your requirements and get customized solutions on time.
-
1,168,768 Orders
-
4.9/5 Overall Rating
-
5,052 Experts
