Competition Spectrum and Antitrust

The competition spectrum is perfectly designed to aid the economy in analyzing, controlling and manipulating the market-center of economic subsistence. Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly are the four crucial parts in determining what kind of competition currently exists in the market. Competition is what buyers love and what sellers abhor.

Perfect competitive market comprises small firms in which profit is quite low at its average. It happens because sellers have no choice but to become price takers while the selling price is closely link to the cost of production. In the case that one seller raise his/her price above the suggested one, zero or even negative profit is highly probable since one firm is selling exactly the same thing as with the other firms. An advantage with this market is that it is very easy to enter and exit as wished by the entity. Consumers, on the other hand, get to enjoy it when competition exists in the market, especially perfect competitive markets. However, they also have no choice but to accept whatever the price of the market.

Firms in a monopolistic competitive market, characterized by many competitors who compete in a differentiated product, can also avail the free entry and exit of the market. Although products are somewhat differentiated, sometimes, they are not seen as substitutes by consumers because of own tastes and preferences. Almost all retail stores are in this kind of competition. Even if it’s easy to start this business, surviving requires the capacity to persuade customers that the product is one of a kind and better than the others.

In Oligopoly, the market is dominated by a small number of large firms. This is one step closer to monopoly. Interdependence between firms arises since one must take into account the other in terms of pricing and marketing decisions in order to keep in the track. These firms have most of the revenues of the market because the degree of market concentration is extremely high.

If the market has merely one seller, and this seller controls and manipulates the price, one is lucky to receive the title of monopolistic power. It is a total absence of competition, which frequently ends in high prices even if the product is inferior. Patents on new inventions give a barrier for others to enter the market. Also, mergers of large companies often produce monopoly over the market. Natural monopoly is the worst case of monopoly. One firm has a tremendous cost advantage over potential competitors since it creates an “economies of scale.” Water and electricity companies display a perfect example since it is very costly to build networks over the whole country. Therefore, it is very impractical for potential competitors to make capital investment in this kind of market.

Antitrust also called as anti-monopoly or competition law, is a policy or a law defined differently by each country or state to regulate and protect the free market in terms of the welfare of the majority. The enactment of this law is very essential to prevent abuses and unjust overpricing of a giant single firm. It includes supervising the mergers and acquisitions of large companies. It is very important to know how much competition exists in the market to be able to make the right decisions. There are different methods used like the 4-firm concentration ratio and the Herfindahl-Hirschman Index to determine the concentration of the market in terms of possible existence of monopoly. Prohibiting practices and other agreements of various firms can promote just living and preclude unfair competition.

Is Terrorism and Tourism Identical?

The tourism industry should be one of the stars of the Philippine economy, given the country's beaches, mountains, golf courses, casinos - and friendly people. But foreign tourists are not coming. The conventional wisdom here is to blame terrorists for scaring them off.

There's the home-grown variety, such as the Abu Sayyaf, a small band of armed Filipino Muslims who are in the habit of kidnapping tourists from beach resorts for ransom. And there are communist guerrillas who are occasionally accused of taking pot-shots at visitors climbing the Mount Pinatubo volcano. Both groups are regarded by the government as terrorists. Then there's the more international Jemaah Islamiya, who have been blamed for the bomb attacks in neighbouring Bali, and who are often described as the south east Asian wing of al-Qaeda.
http://news.bbc.co.uk/2/hi/business/2638423.stm

Reflection:


Filipinos are caught in between the false belief of the purpose of terrorists’ attacks and the core meaning that answers why it should happened. As part of the mob whose adrenaline becomes alerted just by hearing the word terrorism, I also view terrorists as the unjust, wild, anonymous, heartless, inhuman and the door-opener of suffering and death. Oh come on, I am kind of exaggerating my mind's eye. The truth is that they’re like a child denied of the joy of play. I hate to say this but our government is also acting like a child who’s happy to play with others’ toys. Does this imply that life is really a game and that we should play it? I take my stand that death is not a play so the government must address the cry of the terrorists and other people regarding political, economic, and/or religious grumbles and grievances before another attack kills another innocent.

As to the effect in our tourism, my eyes are captured by a scenic black-and-white image that conceals a hidden yet meaningful story behind it and the only key that could unleash the tale is to find the mislaid colors. I don’t have any doubt in our country’s tourist pots and tourist must haves because we are enormously blessed by such. The beaches where people can unwind and go swimming, snorkelling and fishing, the green nature that can help us relax, contemplate and have fun, the variety of Philippines’ craved fruits and delicacies that can fulfil our taste buds down to our hungry stomachs, and the hospitable and smiling Filipino people we can meet and make friends along the journey – these are just an overview of the satisfaction and pleasure of leisure offered by our country. However, it will remain undiscovered until safety and security is absolute.

Isn’t it lovely to know we’re receiving money for our economy while giving smiles and wonderful memories to other people? But, how painful for us Filipinos to know that we are still recovering from the condemnation of our neighboring countries due to the unwanted hostage taking incident between the dismissed Philippine National Police officer and the Hong Kong Nationals last august, 2010. Not just the foreigners are seeking for justice but also for us Filipino citizens because the act of the few affects the present and the future of the most.

I know it’s quite impossible in the short run but I hope someday, the people and our country will get hold of with the things and the credits we deserve.

Philippines- the Text Capital of the World

Filipino cell phone users have truly developed a culture of texting after the Philippines retained its title as the text messaging capital of the world - sending a remarkable 1.39 billion text messages from a subscriber base of just 50 million.
http://www.wayodd.com/the-philippines-reaffirms-status-as-text-messaging-capital-of-the-world/v/8783/


Reflection
Are you a Filipino if you don’t know what cellular phone and text messaging mean? Does it make you less Filipino if you never tried to text someone? Can you still remember how many text messages have you send today? For some, they think it’s a waste but for most, they know it’s already engraved in our Philippine way of life. With unlimited call, text and mobile surfing, plan, and other freebies offered by different networks, how come no one can be lured by such? I'm actually registered to one-day unlimited text as for the moment.

This virtual bond in our society created a turning point of our generation. I reckon it’s really difficult to limit sending text messages for it makes long distance relationship with my family and friends just seconds away. Knowing that my little phone can over speed the swiftness of the fastest road-legal car -Bugatti Veyron, no wonder Filipinos are more practically rich than other branded nations. If I wish that every contact I have around the globe can picture out every detail of my life, it is absolutely granted through constant group sending. Many aspects of my life become convenient.

Conversely, have you experienced difficulty in spelling certain common words? Yes, I am aware that continuous usage of text messaging can conceive a destructive effect of the human skill because freedom is genuinely exercised through texting. I have the power to be boring, creative, “jejemon,” and everything under the sun. I have even tried answering an essay question in which I confidently used “u”-originally “you,” over and over again.(LOL)

The main point is, when we text, we help our economy! Why? It happens because the further we allocate and spend, the more money circulates. Therefore, our economy grows faster and quicker. I’m so happy that I have already contributed much. How about you?

Import-Export Imbalance in the Philippines

Among the many economic problems faced by the Philippines, one is the imbalance of imports and exports. The negative trade is heavy and only counterbalanced by the service account surplus. Over the last two decades, Philippine exports have shifted from commodity-based products to manufactured goods. However, in the midst of the current global economic recession, the exports of electronics, garments and textiles are yet to reach a level of import neutralization.
www.buzzle.com/articles/economic-problems-of-the-philippines.html


Reflection
I can’t grasp why we are acting like a crippled or disabled country if we lack the aid of foreign resources. If we need them, then, why they don’t bother to also seek our assets? There are lot of stuffs that foreign people can buy from us and I will never be blinded with the fact that we are enormously rich but we keep on wasting our possessions!

As I strolled around Uyanguren in Davao city, almost all I saw was made from China and other neighbouring countries. What does it means? I believe it concretely depicts our reliance to the products of aliens. Furthermore, as I tried to inspect the back of my phone, the tag of my blouse and the box of my shoes, I sighed and realized that imbalance rooted from my own choice- the inauthentic option. It’s quite a paradox that I know it’s not really dire to adore products not made in our land but it is also an offense to our “Pinoy Pride.” If this continues, I am afraid we will slowly start to loose the authentic Philippine dignity and eventually, we will all be totally part of the realm of others!

I know for a fact that it’s quite impossible as for the moment not to import fuel from other countries because we are not that blessed with that kind of resource. And, that is the perfect hint. We must focus on products which are merely specialized in our nation so export will race the track of improve effect in our economy. It’s never too late if our government will initiate a project as soon as possible. Let us dream and make it happen. I know it’s worth the cost!