strategy
Deregulating commerce
Synonyms:
Deregulating marketsEncouraging 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. Broader:
Liberalizing tradeFostering competitionReducing government regulationsEnhancing favourable trading environment Constrains:
Regulating world tradeEngaging in unfair tradeReducing intensity of economic competition Constrained by:
Regulating common economic system Facilitates:
Competing in businessStimulating investmentSegmenting labour marketFostering creative corporate competitionUsing economic instruments for sustainable development Facilitated by:
Researching public sector reformEvaluating effects of world trade agreements on competition Problems:
Abusive deregulationDeregulated labour market
Exploitation of deregulation by entrenched enterprises
Unconstrained free trade
Values:
CompetitionCompetition Type Classification:
D: Detailed strategies Related UN Sustainable Development Goals:
