Using the information in the data and your own economic knowledge, evaluate the economic case for and against governments attempting to influence how mobile phones are manufactured and used. (25)
The government should intervene in the mobile phone market to correct market failure due to the presence of negative externalities.
Negative externalities are detrimental third-party effects caused by the production and/or consumption of a good. A public good is a good provided free of charge to the consumer, by the government. A public good is non-excludable and non-rivalrous. A merit good is a good that gives positive externalities upon production and/or consumption. A merit good is non-excludable, yet rivalrous.
The negative
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Therefore, the government should intervene to correct imperfect knowledge and decrease demand for mobile phones.
Imperfect knowledge occurs when either the consumer or the producer know more than the other about the externalities that occur due to the production or consumption of a good. A government can use persuasion techniques to correct imperfect knowledge on the part of the consumer. Ways in which the government can do this include educational advertising and changes to the national curriculum to impart views the government deems will correct imperfect knowledge.
It is argued that the production of mobile-phones exerts negative externalities on the Asian employees of the mobile-phone (Extract E, Line 16). An example of a negative externality on the Asian workers is that of low-wages paid by Western firms to employees in poorer, foreign countries. If the government’s policy of persuasion was successful, demand for mobile-phones produced by firms that incur low costs by paying lower wages should decrease (See Figure 2). This would decrease the quantity consumed of low-cost mobile phones, and reduce the negative externality of an inequality in the distribution of wealth and incomes, present in the production of low-cost mobile phones.
If persuasion was successful, it would also provide incentive to firms that produce mobile-phones to increase wages and lower negative externalities, as demand would be higher in the market for mobile phones produced with
Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone
“The digital revolution has clearly produced a large number of innovative products and services. Some of them have become multibillion pound companies and transformed a significant part of our lives” (Document 9). “Technology deserves some credit for lifting the institutional and bureaucratic barriers that often limit creative talent. In any area of creativity, creative products tended to be judged mostly by formal experts on the subject-matter. And as sensible as their views might be, they will also be affected by biases, politics and errors of judgment” (Document 9). All of this, when you boil it down means that cellphones are useful tools and should be treated as such and otherwise maximize your
The product that I choose for my commodity chain project was the Apple IPhone that has been one of the most popular cell phone devices since its initial release in June of 2007. The idea around me picking the iPhone revolved around the fact that I have owned every generation Apple IPhone since the first generation IPhone release and am very familiar with its technology and background. In the initial part of this paper, I will discuss the rudimentary junctures in the iPhones commodity chain such as manufacturing and retail sale. In the latter half of my paper, I will then specifically investigate into the people who physically produce the iPhone and their living conditions, ways of life, and overall character. It is important to understand that even though Apple is a very profitable company that sells successful, unique products, they still use a contract manufacture known as Foxconn that is known for their harsh work environments and poor labor treatment.
We need to come to terms with the fact that in reality, there is no stopping this widespread takeover of cell phones worldwide.
In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
This paper sets out to explore the correlation between cell phone advertising and the effects it has had on our society. I will provide evidence that advertising has transformed our social norms in regards to cell phone usage. First topic of discussion will be on the history of the cell phone, discussing the advances they have made in the last 20 years. Next will be the discussion of advertising as a separate entity, and then confer advertising regarding cell phones. I will also be discussing some social and cultural implications of all the new cell phone users. By the end of this paper you will be convinced that there is a correlation between cell phone advertising; how and who
The significant development of telecommunication is not only benefiting people who live in the major cities but also to those who live in the developing areas. The people in rural areas can obtain profit from the communications. A London School of Economics professor, examined mobile phone developmental effects and concluded that mobile telephone has a positive and significant impact on economic growth, additionally he emphasized that the impact for the developing countries may be twice as large as in the developed countries (Waverman, Meschi & Fuss, 2005, p.21 cited by Overa, 2006). This condition is happened probably due to the people in the developed countries have been benefited for a long time since they have been using mobile telephony from the 1990s, while in the developing countries they have just recently benefited as a result of the booming of cell phone in the 2000s. Therefore, the impact on economic growth is bigger than in the developed countries.
3. Startups in smartphone sector should be encouraged by proving subsidies to local entrepreneur so that these can be availed at reasonable price in the market which is now being dominated by the Chinese manufacturers.
According to statistics from Ofcom the number of mobile phone contracts in the UK stands at around 91.5m with around half of these being sim only contracts (Ofcom UK, 2016). With this amount of contracts active in the UK then it only makes sense for the mobile network sector to be very competitive. Indeed, there are currently 4 mobile networks in the UK which own their own infrastructure. (Ofcom UK, 2016). In order to analyse why consumers chose the network they chose, we shall look at two different end of the cost spectrum by comparing the UK’s largest mobile network EE but arguably more expensive network to a newer and cheaper network, Three. The average annual cost spend by consumers on their phone contract is currently £469.
The increased availability of the latest smart devices at lower costs, along with some respite in the costs of mobile data services has also sparked the rapid increase of mobile phone usage by both personal and business users. The establishment of a mobile termination rate (MTR) by the seemingly ineffective sector regulator, the Independent Communications Authority of South Africa (ICASA) has gone some way to dropping mobile phone charges, but is still some way off from making the access truly affordable and competitive by global standards. However, due to the MTR, Telkom Mobile and Cell C, the smallest of the four main mobile operators in South Africa have been able to put some pressure on Vodacom and MTN, leading to more competitive packages being offered on both voice and data across all networks. This is still insignificant when one considers that the cheapest prepaid mobile phone product is South Africa is nearly 750% more expensive than the cheapest similar product in Africa. Despite a drop in South African voice charges since the onset of MTR reductions, the huge drop in voice usage and upsurge in data usage is having a
The correlation between mobile cellular subscriptions and trade makes sense if one looks at Zimbabwe’s imports during any given year. In 2013, 17% of Zimbabwe’s imports were technology related (computers, machines et cetera) with the biggest portion being telephones (1.6%) (OEC). In conclusion, even if there is not a direct correlation between their growths, Zimbabwe’s technological progress is still highly dependent on trade.
The data sets to be used for this analysis will be sourced from the Organization for
The government rakes in billions from the technology, in taxes from the mobile phone companies and licensing of the networks. The new generation really doesn't want to know about any potential ill effects." Think of the tobacco companies - says the anti-phone lobby - who concealed the dangers of smoking and the addictiveness of nicotine and supported their position with numerous deceptive studies.
After going through different studies, reviews and articles of different authors we came to the result that 3g and 4g services have both negative and positive impact of country’s economy. Focusing several developing countries as a background like China 4G Specifies Stronger Economic Growth For China: MIIT experts believed that the issuance of 4G licenses, which symbols a innovative era in China's high-speed mobile system, is expected to lift the country's economic growth beside with an rise in information consumption demand. China Mobile, China Telecom and China Unicom will bargain 4G mobile network services countrywide. Moreover, the 3G system in a straight line gave 211 billion Yuan to China's GDP growth and added 1.23 million occupations during the primary three years after it was put into exploit in 2009, according to the MIIT. Furthermore, The Philippines is experiencing healthier socio-economic enlargement due to third-generation (3G) network services, rendering to a report by telecom firm Qualcomm. The report mentioned South Korea, South Africa, Thailand, and the Philippines as examples of countries with 3G deployment, and how this substructure affected their corresponding economies. Between the more prominent points in the study are the flourishing in job formation in the telecommunications segment, formation of innovative products and services geared towards exact mobile marketplace segments, and comfortable experience for consumers who command a