By George McKenzie, Anthony J. Venables
ISBN-10: 1349122009
ISBN-13: 9781349122004
ISBN-10: 1349122025
ISBN-13: 9781349122028
The aim of the one ecu Act is to set up a ecu industry with no boundaries, thereby allowing the loose stream of products, people, companies and capital. to accomplish this finish the eu fee has recommend a few three hundred directives to be carried out through 1 January 1993. The members to this quantity supply a serious overview of the most probably results of those measures for Europe as an entire and for the united kingdom economic system, in particular.
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Additional info for The Economics of the Single European Act
Sample text
Common standards are 'public goods' which benefit firms who support the costs and those who do not alike, and so the market will not provide enough of it. But it is also true, as Geroski points out in this volume, that there are strong interests against harmonisation. Sometimes this is from the anti-competitive instincts of firms noted above. In other cases national differentiation serves a real purpose. For example, in the well-documented example of the food industry (see Cecchini (1988», big gains mainly come from cost reductions if rules are dropped which require only certain ingredients to be used; it is less easy to measure the offsetting loss of value to consumers.
New technology makes it easy for firms to develop multi-standard chips in TV sets and the French market is now vulnerable to Sony sets made in the UK. But Sony has little interest in destabilising the French market; a small slice of a high-margin market is better than a costly battle for market share. We too often treat technical barriers as if 40 Peter Holmes they exist to protect 'national champions' against outsiders, whereas in fact the national champions are often multinationals doing all they can to consolidate product differentiation and market segmentation to reduce the cost of oligopolistic rivalry.
C) Nationalistic industrial policy measures exist, notably restrictions on public sector purchases, and other promotional measures such as subsidies. (d) Monopolistic and cartellistic practices by private business may involve lobbying for government measures to restrain competition. In 1947 the General Agreement on Tariffs and Trade (GATT) froze the existing tariff levels of its signatories, and sought the 'general elimination of quantitative restrictions on trade' (Art. XI), which then mostly meant import licensing procedures.
The Economics of the Single European Act by George McKenzie, Anthony J. Venables
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