Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has continued to shrink due to higher liquor taxes, changing the sales trend of alcoholic beverage products.In the same period, however, the market share of so-called craft beers has quadrupled, to about 2 percent of all beers.Four larger domestic breweries account for 98% of beer production, with smaller local breweries producing the rest (domestic market share: 39% asahi, 31% kirin, 16% suntory, 12% Sapporo and 2%).Imported beer accounts for only about 1% of the total beer market.Craft beer is expected to boost inbound visitors to the 2019 rugby World Cup and 2020 Tokyo OlympicsThe Japanese government is concerned about combined market power that may be exercised by The big four beer brewing companies in Japan. Drawing on economic principles, explain one policy the government could consider implementing to increase competition in the Japanese beer market. Briefly discuss why and how the policy you identify could work effectively, using economic principles.

Question
Asked Nov 7, 2019
33 views

Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has continued to shrink due to higher liquor taxes, changing the sales trend of alcoholic beverage products.In the same period, however, the market share of so-called craft beers has quadrupled, to about 2 percent of all beers.Four larger domestic breweries account for 98% of beer production, with smaller local breweries producing the rest (domestic market share: 39% asahi, 31% kirin, 16% suntory, 12% Sapporo and 2%).Imported beer accounts for only about 1% of the total beer market.Craft beer is expected to boost inbound visitors to the 2019 rugby World Cup and 2020 Tokyo Olympics

The Japanese government is concerned about combined market power that may be exercised by The big four beer brewing companies in Japan. Drawing on economic principles, explain one policy the government could consider implementing to increase competition in the Japanese beer market. Briefly discuss why and how the policy you identify could work effectively, using economic principles.

check_circle

Expert Answer

Step 1

Japanese government can make liquor tax reforms to increase the competition in the Japanese beer market that is levy heavy taxes on the craft beer while reduce the tax on the other beer so that de...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The federal minimum wage in 1988 was $3.35.  The value of the CPI in 1988 was 118.3.  The value of t...

A: The table shows the CPI and minimum wage in1998 and 2018:

question_answer

Q: Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimu...

A: Perfectly inelastic for the unskilled labor demand  would be estimated to be vertical.  It is define...

question_answer

Q: Brief explanation on keynesian model and its diagram

A: Aggregate Demand: It refers to the total demand for goods and services in the economy within a given...

question_answer

Q: Gumez runs a small pottery firm he hires one helper at $12,000 per year, pays annual rent of $5,000 ...

A: a.Accounting profit can be calculated as follows:Accounting profit = revenue – explicit cost= 72000 ...

question_answer

Q: Having problem understanding the following help please.. At $6 per steak, consumers are willing to b...

A: At the price of $6 per steak, consumer is willing to buy two steak and at the price of $2 per steak,...

question_answer

Q: GeeM has a sporty wheel package and a luxury interior package that it is considering offering to its...

A: Given:  GeeM costs 5 to produce a sporty wheel package and 10 to produce a luxury interior package. ...

question_answer

Q: When are larger deficits desirable?

A: Deficit occurs when the government’s expenditure is greater than its revenue.

question_answer

Q: given the following informationon quantity consumed of cheese and total utility for Carl answer the ...

A: 1. Total Utility (TU) refers to the total utility received from the consumption ofa good or service....

question_answer

Q: Р МС $4.00 ATC $3.00 D $2.50 $2.00 MR 3,000 3,500 4,000

A: A firm under imperfect competition can maximize profits at the point where the marginal cost is equa...