Foreign Monopoly Research Articles

Editorial

Editorial

Environmental Policy in Vertical Markets with Downstream Pollution: Taxes Versus Standards

Abstract This paper examines the performance of two environmental regulation policies – emission taxes and absolute standards – in a vertical market where an upstream foreign monopolist sells a specific input to two downstream multiproduct firms that generate pollution in the domestic country. Specifically, we use a three-stage game to analyze and compare the two policies for regulating downstream pollution. In the first stage, the domestic government determines an optimal tariff and sets one of the two instruments (taxes or standards) by maximizing social welfare, in stage two, the upstream foreign monopoly sets its input price, and finally, the downstream domestic firms independently make their output and abatement decisions for profit maximization. We find that total emissions are lower under the absolute standard. Nevertheless, the tax dominates the standard in terms of domestic welfare, consumer surplus, and downstream multiproduct firms’ profits. Thus, the tax equilibrium leads to a win-win-win situation compared to the standard equilibrium. These results show the non-equivalence of emission taxes and absolute standards in regulating downstream pollution. The analyses suggest that a pollution tax is an economically and politically feasible policy.

Comparison of price caps and tariffs to counter a foreign monopoly

This paper compares import tariffs and import price caps as policy measures to regulate a foreign monopolist. We show that for any positive import tariff there exists a set of price caps each of which Pareto-dominates the tariff. This result is particularly important in the case of nontransferable utilities, as in the illustrated example of the EU-Russia gas market.

Left to their own devices: Radio, radiomen and radio stations in the making of Tibet’s modern political landscape

Abstract This article illuminates a correlation between Tibet’s national identity and technological peripheralization through three intertwined tales involving Chinese, British and Tibetan radio stations in Lhasa between 1934 and 1950. Instead of a political backwater, Tibet was crucial to the competition between an expansionist British Empire and a growingly nationalistic Republic of China in the Himalayas throughout the first half of the twentieth century. As Britain and China monopolized the radio to substantiate their respective political ambitions, Tibet was compelled to adopt an image of geographical remoteness and technological underdevelopment. Upon breaking the foreign monopoly, the Tibetan government managed to appropriate this image for the propagation of its definitions of Tibetan state and national identities. Both the radio and the lack thereof in Tibet, therefore, became key to the Chinese, British and Tibetan governments’ efforts in furthering their respective portrayals of the Tibetan state and nation, as well as Tibet’s position in relation to its neighbours and the rest of the world. In addition to illustrating the interaction of power and technology in the creation of peripheral regions and competing identities, the history of radio in Tibet also reveals the essential roles played by the individuals who oversaw the radio’s daily operations in such processes. Refusing to remain mere extensions of the state that they represented or the machine that they operated, these agents and technicians actively pursued their individual objectives, sometimes against the interests of their employers, shaping Tibet’s modern political landscape in unexpected yet significant ways

Mauritania: the Evolution of Political Structures

The Islamic Republic of Mauritania as an independent State emerged as a result of the collapse of colonial French West Africa, which included Mauritania. Its independence was declared on November 28, 1960. At the turning point of historical epochs, under the influence of national liberation movements on the continent and the general democratization of world government institutions, wide opportunities opened up for political activity, both for individual parties and movements, and for a particular individual. The pressure of foreign monopolies, the archaic social structure, internal political instability and the complexity of relations with neighboring countries have become serious obstacles to the development of Mauritania. During the years of independence, Mauritania has repeatedly experienced coups d’etat, which could not but have a negative impact on the entire socio-political spectrum of this West African country. Decades of French colonial influence has been reflected in the formation of political institutions in Mauritania, such as the Constitutional Council and the judiciary. Mauritania’s domestic policy has been based on racial and ethnic lines for many years. The protracted confrontation resulted in a conflict between the black population mainly in the south of the country and the traditionally Berber Arabs living in the northern regions, whose representatives held leading state posts. Each new head of state who came to power in post-colonial Mauritania, among the main tasks of domestic development, set the task of uniting various ethnic groups. Despite the obvious difficulties in solving this issue, the main tasks of the country’s leadership in the field of domestic policy are strict compliance with the current legislation in order to restore public confidence in state institutions and psychological restructuring of the consciousness of the vast majority of the population, aimed at developing a new attitude to domestic political life. In the 1980s, the country began a movement for the right of women to participate in the socio-economic sphere. But only in the 21st century did they gain the right to hold political office, although they are still required to live under Sharia law. At the level of public consciousness, the participation of women in politics and in other spheres of public activity is not approved. Traditional slavery is a special problem of socio-political development.

Medical Application and Industrial Development Strategy of Laser Technology in China

Laser diagnosis and treatment technology has been successfully applied in the field of healthcare and become an important part of precision diagnosis and treatment in modern medicine. This article focuses on the medical application of laser technology and summarizes the development status, trends, and problems of China’s laser technology in clinical treatment, diagnosis, and industrialization, from the perspectives of practical application and industrial chain. The study revealed that China’s laser medicine has made great progress in terms of laser treatment technology, medical laser diagnosis and treatment equipment, and the industry; however, on the whole, the clinical application of laser medical technology is still catching up with the global trend. The applied research of the technology still lacks original creativity, and the research and industrialization of medical laser equipment are at the mid-low end. The key technologies and high-end equipment such as ultrafast lasers for precision diagnosis and treatment are still under foreign monopoly. The study proposes that China should establish sub-disciplines under laser medicine; strengthen the construction of national science and technology innovation platforms for laser medicine; develop regulations on laser medical equipment in a targeted manner; launch relevant policies to support the development of the laser medical equipment industry; and strive to make breakthroughs in key technology research for medical laser diagnostic equipment.

Foreign monopoly and local disappointment in a small-scale tourism community: the case of Las Peñitas, Nicaragua

This article describes how small entrepreneurs in the tourism industry of Las Penitas, Nicaragua, try to cope with contextual changes caused by the development of tourism. The research method for this article is ethnographic. During the fieldwork in Las Penitas, multi-qualitative research methods have been used, like participant observation and interviews. Hoping to obtain a substantial share of the income-growth derived from the new industry, part of the local population shifted from their previous jobs to professions in the tourism industry. Most local entrepreneurs, however, are hesitant to change industry from mainly fishing to tourism. Due to their economic and cultural advantage, some foreign entrepreneurs appear to quickly achieve monopoly positions in the local tourism industry. This increases frustration among local entrepreneurs about stagnating local economic growth, while watching foreign entrepreneurs run more successful businesses. Previous studies showed that tourism is booming in Nicaragua, but the actual impact on the local economy lacks empirical support. The case study of Las Penitas is used to explore the impact of tourism on the cultural change of small tourism entrepreneurs and tell the stories of what happens behind the successful appearance of global tourism growth figures.

Anti-Dumping Investigation: Calculation of the Dumping Margin

Background/Objectives: The research of product dumped import practices is of current importance as it is vital to defend the Eurasian Economic Union common market from unfair competition on behalf of the companies of an exporting foreign state (union of foreign states). Method: The main research method of the aforementioned problem is a system analysis method, which enables to study in an integrated manner such significant component of a dumping triad as the dumping margin and particularly, to develop a certain method of comparison of normal value of a product with its export price, as well to offer different ways of calculation of the absolute amount and relative value (rate) of the margin assisted by the introduced business practices, such as breakeven model, etc. Findings: Main results of the research enable to make a conclusion that three main ways of calculating the dumping margin are possible in regard to the supply of goods: 1. Based on export prices formed in purchase and sale conditions in a domestic market of an exporting foreign state (union of foreign states) at a normal course of trade; 2. Based on current prices at which goods are supplied from an exporting country to the third countries; 3. Based on export prices formed in the countries with a transition (or non-market) economy in which an absolute (or partial) state foreign trade monopoly takes place. Another conclusion is that the use of asymmetrical comparison method of normal value of goods and their export prices in the course of exercising the so-called targeted dumping makes it possible for the antidumping authorities, to zero out those foreign trade operations in which dumped import practices are not present, which purposely increases both the rate and the abovementioned relative value of the margin, thus raising the total value of the duty. Improvements: Materials of the article can be of a practical value for the manufacturers (or a pool of manufacturing companies) in the markets of the EEU member-states when preparing the declaration regarding the use of Anti-Dumping measures against importation of the like product into the Eurasian single customs territory at dumping prices, which causes a financial damage to a certain industry in the EEU.

International Tobacco Politics and the Question of Social Movements in the Middle East: A Comparative Analysis of Ottoman and Iranian Cases

A proliferation of scholarly works offering a variety of modernization experiences facilitated an understanding of social protests in non-western settings. Focusing on the initial stages of modern social movements in Iran and the Ottoman Empire, this study makes a comparative analysis of the tobacco protests at the turn of the twentieth century. The social protests against foreign tobacco monopolies are regarded as a key moment for the emergence of modern social movements in these countries. Scrutinizing the negotiation strategies, social value systems and political structures of these countries, it is suggested that these tobacco protests played a catalytic role in the process of capitalist incorporation and adaptation to the accompanying value systems of modernism and liberal democracy.

Confronting market power: Norway and international cartels and trusts, 1919–39

The article examines the relationship between the Norwegian State and international cartels and trusts in the interwar years. In this period, Norway was at the forefront with regard to implementing legislation regulating cartels, yet the legislation was not an antitrust legislation in the modern sense. It was aimed not only at protecting consumer interests, but more importantly at defending domestic businesses against foreign monopolies and cartels. In the article we examine how the Norwegian authorities interacted with international cartels and trusts in seven different cases in the interwar period. The study shows that although there was a deep seated scepticism towards concentration of market power in Norway, cartels received support from the Norwegian government when they were deemed to be beneficial to Norwegian economic interests. The legislation was used to foster the development of domestic cartels, while at the same time it was employed as a tool to limit the operations of foreign cartels and trusts.

Foreign Monopolies and Tariff Agreements under Integrated Markets

In this paper the optimal policy and the stability of a tariff agreement among the importers of a monopolized good that is sold in an integrated market are studied. To analyze the stability, the tariff agreement formation is modelled as a two-stage game. In the first stage each importer decides whether or not to sign the agreement and in the second stage the signatories and non-signatories choose their tariff whereas the monopoly chooses the quantity or the price. The findings show that the optimal policy of the importers depends on which strategic variable is selected by the monopolist but that, on the contrary, this decision has no effects on the level of cooperation that can be reached by a self-enforcing tariff agreement that, in any case, is very low.

Should governments compete for foreign direct investment?

Two governments consider competing to attract a foreign monopoly to their markets. Competition involves offering incentives to the firm, lowering its marginal cost. The firm chooses to enter either of the markets, produce there and export to the other, to enter both with local production, or to reject all offers. We find conditions when it is optimal for one country not to compete, preferring imports to improving its economy. We show conditions when the country, knowing it will lose (win) the firm, finds it optimal (not) to compete, and establish the relationship between the firm’s choice and the governments’ characteristics.

Tariffs, Quality Choice, and Cost Functions: a Foreign Monopoly Case*

It has been shown that trade restrictions such as tariffs, import quotas, and voluntary export restrictions, lead to quality upgrading of imports. In this paper, however, we reconsider this proposition by focusing on the nature of cost functions. Based on a standard vertical differentiation model, we analyze the effects of tariffs on quality and quantity of imports. We show that if a fixed cost is an increasing function of quality, tariffs lead to quality downgrading of imports. Moreover, we discuss minimum quality requirements (MQR) for such a trade policy. We show that MQR increases the amount of imports and an importing country's welfare in the presence of the fixed cost function. These issues will be addressed in the context of a foreign monopoly.

Trade Liberalization, Environmental Policies of the Exporting Country, and Pollution Emission

This article examines the effects of trade liberalization on the environmental policies set by the government of an exporting country, the amount of investment in pollution abatement technology, the amount of pollution emission, and the welfare of an importing country. We begin with the case of foreign monopoly and demonstrate that, in the presence of technology change, trade liberalization may both improve the welfare of the importing country and reduce transboundary pollution. We derive the conditions under which such an outcome occurs. Moreover, we extend the model to the case of foreign oligopoly.

“They Call Us Thieves and Steal Our Wage”: Toward a Reinterpretation of the Salvadoran Rural Mobilization, 1929–1931

“They Call Us Thieves and Steal Our Wage”: Toward a Reinterpretation of the Salvadoran Rural Mobilization, 1929–1931

QUOTAS, QUALITY CHOICE, AND COST FUNCTION: A Foreign Monopoly Case

It is well known in international economics that quotas lead to quality upgrading of imports. In this article, however, we reconsider this proposition by focusing on the nature of cost function. If a fixed cost is an increasing function of quality, quotas can lead to quality downgrading of imports. This issue will be addressed in the context of a foreign monopoly.

Pricing Implications of U.S.' International Settlements Policy

This paper investigates the impact of the U.S.' policy of “proportionate return of inbound traffic” (PRP) on the prices of outbound U.S. international calls. A quantity-setting model is used to reflect the strategic importance of quantity as a choice variable under PRP. With competitive U.S. carriers, the PRP reduces the total effective costs to U.S. carriers by preventing whipsawing of U.S. carriers by the foreign monopoly carrier—thereby lowering prices. But, the PRP is not effective in lowering prices if U.S. carriers collude. The analysis has important implications for the recent U.S. reform of the International Settlements Policy.

Development of foreign trade and balance of payments in the czech republic, hungary and poland

The objective of this paper is to analyse one of the greatest problems in the process of transformation of these three economies in the years 1990-1996 - foreign trade development. Following political changes in the countries of Eastern and Central Europe, economic changes had to be implemented that also implied changes in foreign trade. These crucial changes include abolition of foreign trade monopoly and its liberalisation, introduction of stepwise convertibility of national currencies (for transactions of balance of payments on the current account at first), changes in exchange rate policy, price liberalisation and territorial reorientation of foreign trade. All these changes were reflected in foreign trade development in all three countries compared.

Rural and Indigenous Women Speak Out on the Impact of Globalization

This article describes approach papers, proposed strategies, and closing agreements among those attending the May 1998 Asian Pacific Forum on Women, Law, and Development (APWLD) among rural, indigenous women (IW). IW spoke of their experiences with globalization. The aim was to examine the effects of deregulation and privatization, liberalization, and global market and foreign monopoly capital on rural, IW in Asia. The expected outcome was an advocacy directive for APWLD in the forthcoming APEC and People's Summit in November 1998. Approach papers included F. N. Burnad's paper on the "Impact of Globalization on Rural Women" and V. Tauli-Corpuz's paper on "Globalization and its Impacts on Indigenous Women: The Philippine Experience." These papers emphasized the multiple roles of women, their increasing resourcefulness which leads to their enslavement, links between globalization and continuing colonization by transnationals and international institutions, access to ancestral resources, and promotion of export led production that threatens food security. Suggested strategies were to mobilize opposition to globalization and greater control over traditional resources and knowledge by IW. Several important questions were raised about nation states, dominant cultures, human rights violations, technology, and the close link between militarization and globalization. Participants agreed to mobilize for effectively resisting and eliminating unjust and unequal systems that exploit and oppress rural, poor, and indigenous people, especially women.

Welfare optimization and multinational monopolies

AbstractThis paper examines the role of import tariffs and consumption taxes when a product is supplied to a domestic market by a foreign monopoly via a subsidiary. It is assumed that there is no competition in the domestic market from internal suppliers. The home country is able to levy a profits tax on the subsidiary. The objective of our analysis is to determine the mix of tariff and consumption tax which simultaneously maximizes national welfare. We show that national welfare does not have an internal maximum, but attains its maximum on a boundary of the consumption tax–tariff parameter space. Furthermore, the optimal value of national welfare increases as the tariff decreases and the consumption tax increases. The results obtained generalize the results of an earlier paper in which national welfare was maximized with respect to either a tariff or consumption tax, but not both.