Monthly Archives: July 2015

Strategic Trade Policy, Asymmetric Costs And Speedy Cash Payday Loans As A Way Out: Introduction

world tradeThe availability of a greater variety of products with increasing levels of world trade has emphasised the importance of non-price competition for success in exporting. At one extreme, there is Japan with its demanding consumers and quality oriented production culture and, at the other, there is the emergence of lower quality, but cost competitive producers among the newly industrialized countries (NICs). Thus success for a company can often involve the careful positioning of products in the quality spectrum taking into account the qualities chosen by foreign rivals. The importance of this strategy is particularly evident in the rapidly expanding, knowledge intensive industries, such as pharmaceuticals and computer software. First, these industries often exhibit high up-front costs of product development with subsequent low variable costs of production. Also, firms tend to be oligopolistic because of limitations on entry due to this cost structure and an ability to patent. In such an environment, the particular features that differentiate products are the main determinants of success and a major focus of competition is at the product development stage.

There are a number of possible motives for government policy targeted at product quality. In particular, regulations affecting quality, such as minimum quality standards, may simply be a response to the need for consumer protection due to asymmetric information about product quality. Such policies may also be a means to protect domestic industry from import competition. Other motives, however, are needed to explain the existence of policies targeted at the quality of exports. if you need money but you have no spare time to go to the bank you may command the service of speedy loans online.