Domestic Monopoly Research Articles

Flags, sports, and the common good: the nationalism that advances the gambling industry

This study investigates how nationalist sentiments enable the gambling industry to capitalize on national markets. With the help of qualitative content analytical tools, we analyzed 500 curated social media posts targeting Finnish and Swedish audiences. The study compared narrative templates, identifying speaker positions (inside/outside sociocultural context) and types of nationalist connotations (surface-level/in-depth). The results are displayed in a four-field matrix that reveals that Finland’s state gambling monopoly, Veikkaus, leverages ‘cultural nationalism’ to highlight its social role, portraying itself as a supporter of Finnish values, sports, and civil society. In contrast, international gambling companies and former domestic monopolies in Sweden’s license-based regulatory system use more mechanical, ‘sports-nationalist’ symbols, though the former monopoly companies occasionally refer to traditional Swedish cultural identity symbols. Compared to Veikkaus, the Swedish operators approach the national market as commercial outsiders, seeking public trust through sports associations. The study sheds light on how regulatory systems shape digital capitalist strategies for targeting national consumers on the social media.

Will Requirements for Last Wills Remain as They Are? The ‘Physical Presence Requirement’ of Witnesses and Notaries in the Light of the COVID-19 Interim Measures and the EU Freedom of (Notarial) Services

The COVID-19-crisis has exposed the shortcomings of formal requirements for legal acts which involve the physical presence of others. This is in particular true with regard to last wills which require the physical presence of a notary and/or witnesses, who have to authenticate and/or attest to the last will of the testator. In such cases, the physical presence requirement imposes an outright obstruction to passing a last will in times of COVID-19. Western countries have responded differently to COVID-19. In the civil-law jurisdictions where only notarial wills are offered, such as the Netherlands, the government has introduced interim measures allowing the testator (and witnesses, if required) to appear before the notary by audio-video technology, leading to authorized remote notarization and remote witnessing. The same has been done in common law jurisdictions where only witnessed wills are offered, including Australia, New Zealand and some states in the United States with regard to witnessing. The first part of this paper researches the different types of last wills and seeks to explain why countries have responded differently in this respect to COVID-19. The second part discusses the different solutions available and argues that solutions introducing audio-video technology as an alternative for physical presence are more favourable than other solutions. Remote authentication and remote witnessing leaves intact the existing will-types of the particular jurisdiction as they are, modernizing the presence requirement of the notary and/or the witnesses, while at the same time preserving legal certainty by anchoring these possibilities in legislation. Introducing audio-video technology in making last wills seems a logical step forward in the 21st century. Building on the two previous parts, the third part investigates a more fundamental issue relating to the physical presence requirement for notarial wills from a European Union free movement of services perspective. Discussing ECJ case law and two applicable directives, it shows that Member States are allowed to restrict the freedom of establishment of notaries and freedom to provide notarial services. These restrictions often lead to a domestic monopoly of notaries, where notaries appointed in the Member State offer exclusively notarial services under the legislation of that Member State, with the requirement that these notaries can only be established in and only offer their services that Member State. Combined with the physical presence requirement, these restrictions to the freedom of establishment and the freedom of services effectively force a testator desiring to make its last will before a notary to travel to the Member State of that notary. Even without COVID-19, it is the question whether this physical presence requirement unnecessarily restricts the freedom of services under art. 56 TFEU, as it deprives the notary and the testator of a rapid and direct technique of passing notarial wills. The possibility of remote authentication under interim legislation raises the question whether the physical presence requirement is objectively justified and proportionate to restrict the freedom of services.

Spatial distribution dynamics and prediction of COVID‐19 in Asian countries: spatial Markov chain approach

AbstractCoronavirus disease 2019 (COVID‐19), as a contagious disease, has negative externality and public policies are essential to control it. To provide control solutions, identifying the factors affecting the spread of COVID‐19 and its distribution dynamics are very important for policy‐makers. Although there have been many studies examining various factors affecting the spread of COVID‐19, there are research gaps on the distribution dynamics of COVID‐19, its future trend prediction with the current policies, and the effects of neighbours on the distribution dynamics of COVID‐19. Hence, this paper used the data published on the confirmed COVID‐19 cases (C‐COVID‐19) from 9 February 2020, to 27 July 2020, to investigate the spatial distribution dynamics of COVID‐19 and its prediction in 40 Asian countries. The Markov chain and the spatial Markov chain were used in this study. The results show that the COVID‐19 in Asia did not tend to zero with the current policies, and the neighbours had effects on the spread of COVID‐19. Therefore, policy‐makers should use co‐operative policies between countries instead of domestic monopoly policies.

Protection of Domestic Investors under the WTO and International Investment Regimes

AbstractThis paper analyses how international economic law regulates measures aimed at the protection of domestic investors against foreign investors. It evaluates the logic of investment protectionism and assesses the incentives behind foreign entry barriers. It analyses and evaluates WTO GATS cases that dealt with the issue. It then develops a framework on how the facts of the China–Electronic Payments Panel decision could be assessed in international investment treaties. Several provisions common to those treaties would be applicable to the situation and the recent US–China Economic Agreement explicitly deals with the issue. However, adjudication under investment treaties would only be possible if some procedural conditions were present. The paper concludes that international economic law already covers a range of situations related to entry barriers to foreign investments. It also suggests that states can carefully tailor both substantive and procedural treaty rules to allow for coverage, or not, of situations involving domestic monopolies.

Forming an effective financial and investment environment in the eu countries-experience for Ukraine

The subject of the research is a set of institutional institutions and organizational and managerial relations that effectively regulate the financial and investment environment in the EU countries, comparing them with Ukrainian realities.The goal of writing this article is to develop practical and scientific-methodicalrecommendations on how to increase the efficiency of using financial and investment potential based on the experience of EU countries. The methodology of thework-system-structural and comparative studies (to understand the logic of thefunctioning of institutions that form the investment environment and the mechanisms of their interaction); monographic analysis (in studying the problems ofattracting investors); historical and economic analysis (in assessing the state andprospects of the European, as well as the Ukrainian economy). Results of work -it is revealed that modern European regulators are aimed at forming a holisticinvestment and financial infrastructure and investment platform at the supranational level. It was proposed to carry out further liberalization of currency regulation in Ukraine in order to transform it into a convenient and efficient electronicautomated currency exchange system and introduce the integration of the domestic depository system into the international depositary clearing system Clearstream.It was noted that the financial and investment environment in Ukraine is blockedand domestic monopolies are interested in this, thanks to lobbying in the Verkhovna Rada of Ukraine and in the executive branch they have distorted financial,investment and currency legislation for their interests and needs. Conclusions-thepresence of a holistic investment and financial infrastructure in the EU countriesis due to the gradual convergence and unification of legislation at the nationallevel to the supranational level. In addition, it is reasonably high investment positions of Ireland in the world and it was proposed to use this experience to createa favorable financial and investment environment in Ukraine. Note that the formation of the financial and investment environment in Ukraine according to European standards is hampered by: oligarchic monopolies, which parasitizes mainly onnatural monopolies; government corruption; confusing and incomprehensible legislation for investors; high tax rates and tax administration system; instability ofthe banking system, the risks of hryvnia devaluation; the insecurity of landagrarian relations; as well as armed conflict in the east of Ukraine.

KT&G: From Korean monopoly to ‘a global name in the tobacco industry’

ABSTRACTUntil the late 1980s, the former South Korean tobacco monopoly KT&G was focused on the protected domestic market. The opening of the market to foreign competition, under pressure from the U.S. Trade Representative, led to a steady erosion of market share over the next 10 years. Drawing on company documents and industry sources, this paper examines the adaptation of KT&G to the globalization of the South Korean tobacco industry since the 1990s. It is argued that KT&G has shifted from a domestic monopoly to an outward-looking, globally oriented business in response to the influx of transnational tobacco companies. Like other high-income countries, South Korea has also seen a decline in smoking prevalence as stronger tobacco control measures have been adopted. Faced with a shrinking domestic market, KT&G initially focused on exporting Korean-manufactured cigarettes. Since the mid-2000s, a broader global business strategy has been adopted including the building of overseas manufacturing facilities, establishing strategic partnerships and acquiring foreign companies. Trends in KT&G sales suggest an aspiring transnational tobacco company poised to become a major player in the global tobacco market. This article is part of the special issue ‘The emergence of Asian tobacco companies: Implications for global health governance’.

The economics of the Swedish online gambling market

ABSTRACTIn this article, we study how the Swedish online gambling market has developed and how the availability of foreign-based online gambling has affected the domestic state-owned gambling monopoly, AB Svenska Spel. We find that online gambling and the traditional state-managed gambling are relatively weak substitutes. Thus, concerns about the availability of online gambling being able to undercut domestic gambling policies may be overstated.

Exports versus FDI in Smith-Motta framework

In this paper we study the choice between exporting and foreign direct investment (FDI) in the Smith-Motta duopoly framework. First, we identify the conditions necessary for exporting and FDI, depending on the costs of exporting and the cost of foreign investment. Then, we discuss various proximity-concentration tradeoffs. Finally, we demonstrate that six possible types of equilibriums may emerge depending on various combinations of the key parameters of the model. These equilibriums include: a monopoly FDI equilibrium, a monopoly exporting equilibrium, a domestic monopoly equilibrium, a duopoly FDI equilibrium, a duopoly exporting equilibrium, and no entry equilibrium.

Privatization in the presence of patent licensing

This paper analyzes the licensing policy for a cost-reduction technology of a foreign R&D institution when it is faced with a domestic monopoly manufacturer. It is found that, due to objective differences, a public domestic manufacturer will be charged higher than a private domestic manufacturer for a certain licensed technology. Accordingly, to save on the licensing payment made to the foreign R&D institution, the domestic government is recommended to (partly) privatize the public manufacturer.

Halting Beerrs March to Monopoly: The Likely Anticompetitive Effects of Anheuser-Busch InBevvs Proposed Acquisition of Grupo Modelo

Halting Beerrs March to Monopoly: The Likely Anticompetitive Effects of Anheuser-Busch InBevvs Proposed Acquisition of Grupo Modelo

From the Tyranny of Distance to the Power of Proximity: Can Australian Workers Trade up in the Lucky Country?: The 2011 Stan Kelly Lecture, 10 November 2011

Imagine a country that is inward looking and rarely notices the world beyond its own borders. Imagine a country with double-digit inflation and unemployment and a poor record of economic growth. Workers and their bosses are at each other’s throats, the country leads the world for working days lost due to industrial disputes and productivity (and how to improve it) is rarely talked about. Industry shelters behind prohibitive tariff walls (thinking only of the domestic market), the exchange rate is fixed every morning by officials of the central bank and the Treasury and international trade is an afterthought. Shop hours are regulated, domestic monopolies run most industries, and foreign entrants (in areas such as banking) are prohibited. Tax is high (and therefore evaded and avoided); expenditure untargeted and budgets in deficit. There are few foreign tourists, or many foreign students on university campuses. There are few restaurants around and licensing laws are restrictive. This country is at the bottom of the global premiership table in terms of economic performance despite its bountiful wealth.

Smart ball: marketing the myth and managing the reality of Major League Baseball

Smart Ball follows Major League Baseball's history as a sport, a domestic monopoly, a neocolonial power, and an international business. MLB's challenge has been to market its popular mythology as the national pastime with pastoral, populist roots while addressing the management challenges of competing with other sports and diversions in a burgeoning global economy. Baseball researcher Robert F. Lewis II argues that MLB for years abused its legal insulation and monopoly status through arrogant treatment of its fans and players and static management of its business. As its privileged position eroded eroded in the face of increased competition from other sports and union resistance, it awakened to its perilous predicament and began aggressively courting athletes and fans at home and abroad. Using a detailed marketing analysis and applying the principles of a smart power model, the author assesses MLB's progression as a global business brand that continues to appeal to a consumer's sense of an idyllic past in the midst of a fast-paced, and often violent, present.

Price equivalent tariffs and quotas under a domestic monopoly

Price-equivalent import tariffs and quotas are compared when domestic production is controlled by a monopolist, say an agricultural marketing board with the power to restrict domestic supply, under endogenous terms of trade. Welfare comparisons boil down to sourcing costs comparisons. Quotas tend to dominate at high domestic prices, ad valorem tariffs at intermediate prices and specific tariffs at low domestic prices. Welfare maxima are achieved with more restrictive policies than under perfect competition. These results rationalize separate negotiations for sensitive products in the Doha Round and the setting of tariff-rate quotas that mimic import quotas for these products. Finally, in ascertaining the robustness of our policy ranking to the choice of variable anchoring the comparisons, we found that specific tariffs unambiguously dominate ad valorem tariffs and quotas when government revenue or imports anchor the comparisons. However, some quota revenues and import levels cannot be achieved with tariffs.

Simulating Tariffs vs. Quotas with Domestic Monopoly

The pro-competitive effects of international trade in the presence of monopoly, and the deleterious effects of protection, are topics commonly taught in both international trade and industrial organization classes. We present a numerical simulation model for classroom use, built in Excel, that is designed to explore the effect of international trade on a monopoly, and how the effects of protecting the monopoly may differ depending on whether a tariff or a quota is chosen. We describe the model, key results, and how to integrate the approach into the curriculum.

Foreign Dependence and Domestic Monopoly: The European News Cartel and U.S. Associated Presses, 1861–1932

There are only two forces that can carry light to all corners of the globe-the sun in the heavens and the Associated Press down here.’ Mark Twain1 When research on news agencies was carried out in ...

Technological Improvement and Industrial Employment

This paper looks at how the entry of a multinational in the domestic market of an industry in a developing country affects the total industry wide employment. It is assumed that the technology of the multinational is more efficient than the domestic technology. Standard Cournot oligopoly and Bertrand models are used. When a multinational enters the market of a domestic monopoly employment increases only if technology differences are very small or very large. Entry into markets controlled by domestic oligopolies is associated with an increase in employment only if the difference in domestic and multinational technologies does not exceed a certain magnitude which is inversely related to the existing competition. The results can be generalised to any case in which the entrant into the industry is more efficient than the existing firms.

Post‑Crisis Restructuring: Foreign Ownership, Corporate Resistance and Economic Nationalism in Thailand

Introduction The IMF prescriptions attached to the rescue loans agreed with Indonesia, South Korea, and Thailand during 1997 involved substantial and immediate liberalization, particular]y of controls over foreign ownership, reform of corporate governance and privatization of state-owned enterprises. This was a marked departure from earlier conditions under which liberalization and reforms of these types were seen as part of longer-term development. For many commentators, the demands for such rapid liberalization indicated that the IMF had not only exceeded its remit, but was serving the interests of Western and Japanese business that had long been demanding access to markets and ownership in the stricken economies. (1) However, the IMF policies have been justified in terms of increased foreign participation being necessary for the cleaning and restructuring that neither domestic business communities nor governments were capable of undertaking. (2) Foreign investment in sectors that had previously been effectively domestic monopolies was expected to bring modern business practice, improved corporate governance and increased efficiency, as well as raise productivity and increase competition. (3) The World Bank laid particular emphasis on the importance of corporate reform to sustained economic recovery. (4) Overall, there were views that increased foreign market penetration and ownership would accelerate the recovery of the distressed Asia Pacific economies and the reform of corporate governance. (5) It was widely expected that the liberalization measures, together with the distressed state of the corporate sectors, would result in rapid consolidation of ownership and expansion of foreign ownership. Indeed, many commentators foretold large-scale fire sales, with foreign companies picking up substantial assets at rock-bottom prices. (6) However, it is argued here that, while there has been significant liberalization of the restrictions on foreign ownership in Thailand, this has not been accompanied by significant restructuring and effective reform of the corporate sector. In addition, while there has been a major increase in foreign participation in Thai registered companies, and some increase in foreign control, the latter has only involved a small proportion of the Thai corporate sector. To a degree, the limited developments in these areas reflects the slow and uncertain course of Thai economic recovery and reform, but, as is outlined in this article, there has been a significant element of resistance to restructuring by the Thai corporate sector, particularly the most heavily indebted elements. This has been facilitated by the established patterns of ownership and cumbersome bankruptcy and merger procedures, all reinforced by popular protest and continuing government support for major business interests, something that became more overt following the January 2001 election of the Thaksin Shinawatra government. This paper is organized under four main headings: liberalization of foreign ownership, foreign ownership in the banking sector, corporate restructuring and reform of the non-financial sector, and the rise and fall of economic nationalism. Liberalization of Foreign Ownership Following the Thai government reaching agreement with the IMF in mid-August 1997 over the US$17.2 bn funding package, some immediate moves were made to liberalize foreign ownership. In October 1997 the government announced that majority stakes would be permitted in the distressed financial sector for up to ten years, after which any holdings over 49 per cent would have to be sold to local investors. (7) Later in the same month the BOI (Board of Investment) made use of its powers of exemption to permit majority sales of Thai companies operating under its promotion scheme in the Bangkok Metropolitan Region and Immediate Environs, provided that the local owners agreed. This was extended to the rest of the country in February 1998. …

The Employment Maximizing Import Quota Under Domestic Monopoly

We consider a domestic monopolist who is protected by an import quota on the product he produces. He faces a domestic demand curve which is characterized by a constant price elasticity. He is unable to export and has an upward sloping marginal cost curve. We demonstrate that in this case his employment of labor rises with the import quota until imports rise to a fraction lie of domestic output where e is the elasticity of domestic demand. Thus, the employment maximizing quota sets permissible imports at a fraction of domestic output which is at least as high as the reciprocal of the elasticity of demand. We also make a case for liberalizing all the way right away, "cold turkey liberalization. "

Tariffs, quality reversals and exit in vertically differentiated industries

In a vertically differentiated industry a domestic and a foreign firm first choose the quality of their goods and then compete in quantities, or prices, in the home market. We investigate the cases in which a tariff is chosen before, or after, the firms’ quality decision. These cases are referred to as the ex-ante and the ex-post game, respectively. Optimal ex-post tariffs are positive and ensure that the domestic firm always produces the high quality good. The optimal ex-ante tariff is prohibitive and welfare under domestic monopoly is lower than under ex-post tariffs, unless firms compete in prices and the domestic firm is high quality.

The Strategic Reaction of Domestic Firms to Foreign MNC Dominance: the Israeli Experience

With the promise of regional peace brought about by political developments in the Middle East in the 1990s, Israeli firms found themselves in a radically changing environment, with multinational corporations (MNCs) making massive inroads into their long-standing domestic monopolies. Firstly, this article demonstrates how foreign MNC positioning has dominated that of their domestic counterparts. Secondly, we describe how this strategic dominance has triggered domestic firms into rethinking their strategies, and turned them into global players. The Israeli experience offers lessons for both foreign and domestic firms in how to develop economies better prepared for a win–win situation.