Discuss Whether Government Intervention Always Improves The Operation Of The Market

1556 words - 7 pages

Around the world, governments, mostly intervenes in the market in order to accomplish their policy objectives. The government’s policy objectives or goals could be related to economics, ranging from stabilization of prices, export promoting, encourage equal distributions for income and commodity protection. The examples as per above proves that government intervention is not only limited to economic effects also influences the society. There are two (2) types of usually regulated government interventions, which are automatic and discretionary. Automatic can ale defined as intervention which is based on rules and regulations. On the other side, government interventions which are discretionary mostly targets stopping, suspension or limitation of a certain contract market.
Apart from that, most of the government’s intervention happens when the market affects future markets or total cash widely. Some examples of interventions are controlling of prices, direct buying of buffer stocks, duties, embargoes, quotas as well as policy implementations that impacts prices.
An early review of government market interventions shows that discretionary based interventions usually fails in accomplishing targeted policy objective compared to interventions based on rules as the latter proves to be more successful in a market economy. At the same time, discretionary interventions gives results that are undesired that could be quite damaging and high cost to the government. The harmfulness in this aspect can be defined as total impact on those involved in either marketing or producing commodities.
Government Intervention Worries
A government’s worry on the assumption and inflations rates of the market is not quite unusual among the many governments in the world. For an example, your very own government might be highly concerned on the price of staple that consumers are paying for currently. From time to time, voted lawmakers in economics markets demand the role playing of opportunists especially when the consumer prices for food commodities raise precipitately in the future market.
Some of the instances of latest market closures happened because of politically aware occurrence, or, perhaps some nature disaster that prompts market closure. For an example the US market was shut down for about four days after the 9/11 tragedy and the major flood destruction in 1992 which closed down the Chicago Board Options Exchange (CBOE). (Singh, et al., 2007)
When it comes to the evaluation of the intervention, some of the measures in order to weigh either the accomplishment or failure of the government’s intervention in the market are comparatively upfront. Some of the straightforward criteria are the objective of the government’s intervention in the market, substitute or alternative tools and techniques in order to accomplish the targeted objective, success rate of the intervention tools used in realizing the objective as well as expenses involved which...

Find Another Essay On Discuss whether government intervention always improves the operation of the market

Operation Market Garden the Battle of Arnhem

1943 words - 8 pages the differences in tactics. The question was whether to continue so far the Supreme Allied Commander of the Allied Forces Europe, General Eisenhower’s tactics attacking on a broad front, or due to problems of supply to take just one mighty blow. In that period Field Marshal Bernard Montgomery developed a new operation plan, which would include the use of 1st Airborne Army (Lieutenant General Lewis H. Brereton), actually 1st Airborne Corps

Government Intervention On The Internet Essay

1683 words - 7 pages second, and allows a common personto access wealths of information worldwide. This newfound global network,originally called Arconet, was developed and funded solely by and for the U.S.government. It was to be used in the event of a nuclear attack in order to keepcommunications lines open across the country by rerouting information throughdifferent servers across the country. Does this mean that the government owns theInternet, or is it no

Discuss Whether or not Globalisation is the Death of Culture

2174 words - 9 pages increasing impact of social interaction and organisation. This links distant regions across the globe, economically and socially, and often through the medium of the media. Positive theorists of globalisation believe that it is both eventual and irreversible, and will bring huge benefits to mankind, but those opposed to globalisation believe it is only making lives and economies unequal. This leads us to a frequently posed question as to whether

The Example of Multinational Corporation Operation in a Foreign Market

2632 words - 11 pages country. In the meanwhile, foreign production strategy include assembly, contact manufacturing, licensing and franchising, joint ventures, and 100 per cent ownership. MNC can perform their business activities and operation in terms of the number of countries in which they operate. They can operate in 100 countries, with hundreds of thousands of employees located outside its home country (Kogut, 2001). The main concern is whether capital can flow from

Government Control Improves Airport Security explors the benifits of U.S. government controled airport security. 7.25 pages DS w/ bib. for a writing class

2741 words - 11 pages Government Control Improves Airport SecurityIn the wake of the September 11 terrorist attacks, the federal government has directed its focus towards national security by improving airport security nationwide by taking control and voting to improve airport security nationwide. Pre-September 11, airport security was the responsibility of either the individual airports that hired out security services to inconsistent, non-conforming, private

Explain the models of oligopoly behaviour that we discussed. Discuss whether the respective assumptions are realistic

1941 words - 8 pages Discuss examples where different models might be the most appropriate (think for example of market for raw materials or for air travel).In this essay I am going to discuss models of oligopoly behaviour and analyse them and see whether they are realistic or not and evaluate them with certain examples where they may be most suitable.Oligopoly is defined as a market form in which a market is dominated by a small number of sellers. There are many

"Change isn't always easy." Discuss the impact of Change in the texts you have studied

1777 words - 7 pages The impact of change in the film “Billy Elliot” directed by Steven Daldry, the novel “Saving Francesca” by Melina Marchetta and the poem “Out, out” by Robert Frost, presents us with the view that “Change isn’t always easy”. We learn that it is by overcoming the adversity that change brings to us that we develop in character. In the case of the poem, we learn that the impact of change can be immense

Discuss The Initial Social & Political Reforms Of the Bolshevik Government

912 words - 4 pages introduced into the factories in an attempt to make workers more efficient, the state also made work compulsory and all workers were made subject to government direction. Strikes were also made illegal. Peasants were forced to give all excess produce to the government and were no longer allowed to sell produce for profit. Food was rationed in the cities. To meet the required expenses the government produced masses of paper money. This caused inflation

Discuss the view that understandings of politics are always based on conceptions of human nature

2072 words - 8 pages the individuals that comprise of it, meaning that each individual has to be understood, to fully understand a particular society.This has led to liberals promoting natural rights and liberty as well as laissez-faire economics (or free market). Through the market mechanism economic life could be sorted out automatically. Competition would allow only the most efficient and productive individuals (whether owning an enterprise or a worker) to succeed

Discuss with reference to the 'rules' and examples of the operation of precedent and statutory interpretation

1924 words - 8 pages inconsistent with a subsequent House of Lords decision3. Where the earlier decision was announced without proper consideration given to the previous cases or statutes per incuriam.Of course whether an earlier decision is wrong or not is a matter of opinion to a large extent, which underlines the fact that the doctrine of precedent is not always as limiting a constraint on the inventiveness of judges as might at first be imagined.However if a judge

Discuss Whether it is Possible to Maintain the Neutrality of Humanitarian Aid

2785 words - 11 pages well-illustrated particularly in the intervention currently ongoing in Afghanistan and analysed in many of the research articles cited above. It thereby creates the association of a politicised motivation with whomever is the provider of humanitarian aid regardless of their principles or stated position. While it may be desirable to declare neutrality in the provision of humanitarian aid, this position is not always possible. Furthermore

Similar Essays

Discuss Whether Hong Kong Government Should Limite The Daily Quota Of Incoming Mainland Chinese Tourists

928 words - 4 pages Recently, Taiwan government announced that the daily quota of incoming mainland Chinese tourists will be 5000 people in the next year. The action of Taiwan government has aroused a great deal of controversy on whether Hong Kong government should imitate Taiwan to limit the incoming mainland Chinese tourists. Some people pointed out that it may have drawbacks on the Hong Kong economy. However, some local residents argue that it benefits Hong Kong

Do We Need Government Intervention In The Form Of Competition Policy ? If So, Why? Applied And Discuss Based On Case Study Or Research

1715 words - 7 pages and better products.In the real economy, is it always necessary for government intervention in the form of Competition Policy?Let's consider The United States Airline Deregulation 1978.This deregulation is seen to be successful, it brought benefit to customers. However, it also raised some problems such as congestion, limited re-emergence of monopoly power and with it, and the exploitation of a minority of customers. So when do we need

Internet Regulation, Government Intervention Of The Internet

2608 words - 10 pages ), everything is bound to offend someone. The newest wave of laws floating through law making bodies around the world threatens to stifle this area of spontaneity. Recently, Congress has been considering passing laws that will make it a crime punishable by jail to send 'vulgar' language over the net, and to export encryption software. No matter how small, any attempt at government intervention in the Internet will stifle the greatest communication

Failure Of The Operation Market Garden

1600 words - 6 pages Operation Market Garden also referred to “A Bridge too far” was an unsuccessful attempt to starve Hitler War Machine of supplies reducing the German’s will to fight ending the War before Christmas 1944. UK Prime Minister Winston Churchill, supported a “broad front” strategy for moving across Western Europe into Germany. British Field Marshall Bernard Montgomery with Churchill’s backing began to press for change a “single thrust” strategy. The