Posts tagged type

Table of Types of Protectionism

Type of Protectionism Definition Real World Example + Link
Tariff It is the tax on imported goods, which could be imposed on specific products. Japan imposes tariff on imported rice.Article Link: Click Here
Quota It is a limit to the imports set by the government. The trading economy can only export maximum amount of goods to the economy that is imposing quota. European Union imposes quota on Japanese cars.Article Link: Click Here
Subsidy It is the sum of money given to the weak industry in order to maintain the job places that it provides. The Japanese government is giving subsidies to Japanese rice farmers.Article Link: Click Here



Advertisements

Leave a comment »

In what type of market are iPods categorized in?

Read the article: tutor2u: Q&A: In what type of…

ipod-nano-color-palette_large

There is a controversy over whether iPods belong to monopoly market or not. Those people who say that it is not in the monopoly market categorized iPods as oligopoly market.

The arguments in favor of categorizing iPods as monopoly:

  • It dominates with the market share of more than 80 percent.
  • Apple built up ‘vertical monopoly’ by introducing generations of iPods.
  • DRM had appealed music industries to sell there products through iTunes, which strengthened this ‘vertical monopoly.’

The following points are arguments in favor of categorizing iPods as oligopoly market:

  • There are intense price competition.
  • Heavy investment on research and development.
  • Non-price competition.
  • Patented technologies.
  • Consistently creating new application.

In my opinion, iPods are in monopoly market. The arguments made in the oligopoly categorization are correct, however, I think that they’re just smart moves of Apple to dismantle the image of monopoly on their market.

Comments (1) »