The paper "Comparison of Australia’ s and the United States’ Competition Policies " is a great example of a business case study. Competition policy is a form of government intervention into the market to regulate the actions of businesses with an aim to promote competition and make capitalism work better for the benefit of the consumers and the population in general through efficient consumption of production resources and a fair playing ground for all businesses. Competition policy then achieves results such as ensuring that consumers have a wider choice and they are protected, ensuring adoption of technology to maximize efficiency and promoting price competition to reduce antitrust tendencies in a market.
In Australia and in the United States, the governments have put in place policies to regulate competition in their respective markets. The implementation of the policies is entrusted to particular agencies in each country. In Australia, the Australian competition and consumer commission (ACCC) is mandated with implementing the competition policy. In the United States, the Federal Trade Commission (FTC) is in charge of ensuring the government’ s competition policy is adhered to.
This paper seeks to analyse the competition policies of these two countries. To highlight the different approaches used by each country and how effective they have been. Australia’ s competition policy From the year 1950 up to the 80s, the Australian national economy had been on a downward trend. It dropped ten places from number 5 in the OECD GDP per capita ranking to 15. This necessitated quick reforms in the economy to deal with the deteriorating economic conditions. The general agreement was that the economy needed to be efficient enough to use resources optimally and ensure full productivity of the economy.
The reforms introduced by the federal government in the late 80s were largely pro-competition as opposed to the earlier policies which sought to protect the economy and thus indirectly encouraging inefficiency. A national competition policy institution was established upon the consent of all governments in Australia. The progress of the reforms was to be monitored independently by the national competition council (NCC). One of the most notable microeconomic reforms in Australia was the opening up of the economy to competition that was envisioned to achieve efficiency in production and in the market too.
It involved the removal of tariffs that protected local industries making them inefficient. It also involved deregulation of industries to allow for innovation and fair competition in the market. Protecting the market from competitive forces makes it inefficient and thus the reform aimed at eliminating inefficiency by opening up the market. The reforms were introduced in the Australian market in the 1980s. Towards the end of the 80s and the beginning of 90s, the economy had already started enjoying some fruits of the deregulation and strengthening of the economic reforms.
Multifactor productivity averaging 2% for the first five years from 1990 to 1997 was recorded according to data from the productivity commission of Australia. Allocative and productive efficiency was largely credited for the improvement of the economy. Production techniques and technology had improved considerably since the start of the reforms. The emergence of the service industry further enhanced the productivity of the economy through increased liquidity goods in the economy.
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