strategy

Deregulating commerce

Synonyms:
Deregulating markets
Encouraging trade competition
Description:
Removing government rules and guidelines about pricing from industries in order to create better services and lower costs in a more competitive environment.
Implementation:
In the 1980s state-owned or protected monopolies and enterprises were broken-up or turned over to private ownership in several countries.
Claim:
With little competition amongst government-regulated industries, corporations have no incentive to cut costs. Deregulation transforms high-cost protected companies into lean, formidable competitors.
Counter Claim:
To remain competitive, firms must cut costs by laying off employees or become more dependent upon state subsidies, thereby increasing unemployment and use of tax money.
Subjects:
Commerce
Trade
Market
Conditions of trade
Type Classification:
D: Detailed strategies