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Price Discrimination and Trade Practice
Price as a very important indicator of an economy needs to be regulated by the State to protect the interest of the consumers from scrupulous businessmen. Price discrimination policies and laws need to be strengthened to achieve the goal of a government for the benefits of the consumers. That is the focus of this essay.
|language || ||english
|wordcount || ||4245 (cca 12 pages)
|contextual quality || ||N/A
|language level || ||N/A
|price || ||free
|sources || ||2
Table of contents
PRICE DISCRIMINATION 2
EFFECTS OF DUMPING 8
ANTI-DUMPING LAWS 9
Works Consulted 10
Preview of the essay: Price Discrimination and Trade Practice
Price Discrimination and Trade Practice In a number of countries of the world, businessmen offer different prices for the same products to different customers based upon different sets of circumstances and conditions. This is a common practice among them. For example, where the customer is giving continuous and big business to a firm, management may decide to accord certain privileges in the form of discounts not given to others. This partakes of what is known as a trade discount, which can run as high as 33-1/3 percent in France. A trade discount may be described as a percentage reduction from the list price that is allowed by manufacturers to whole sales and by wholesalers to retailers. No entries are made in the accounts for trade discounts; entries for purchases and sales are made at the net price. Trade discounts are commonly used as a means of adjusting list or catalog prices to changed market conditions apart from what has been indicated above. Manufacturers and jobbers who deal in merchandise that is more or less standardized issues catalogs describing the goods; the prices quoted in the catalogs are the list prices. As the market ...
... in such competitions are injurious or destructive and therefore, unfair, the law seeks to guard society against them, but not until there is a fair showing of such unfair methods must the law step in. According to the ruling laid down in the case of Raladam Company vs. Federal Trade Commission, 42 F(2d) 430, 463, unfair competition is an offshoot of competition. Unfair competition cannot exist unless there is competition and there can be no competition unless there is something to compete with. It seems to be a logical conclusion that if there is competition, there will arise unfair competition. The legislative intent is to minimize if not altogether prevent unfair competition. So the law provides the imposition of special customs duties against those found guilty of violating the law. Unfair methods of competition may be surreptitiously employed by unscrupulous importers, placing local industries in a very disadvantageous position which ultimately will mean exploiting the interest of hapless consumers.
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I have some inkling of guess that this essay is a result of massive research along this area of macroeconomics. Words of commendations to this writer.