Economic Regulation and Transportation

The assignment discusses economic regulation and its importance in transportation, particularly in a globalized economy. It highlights how regulations ensure fair competition, quality maintenance, and optimal strategies to prevent issues like arbitrage opportunities, price control, and tax evasion. The deregulation of the transportation industry can lead to increased prices and reduced comparative advantages. Globalization has also impacted the job of transportation managers negatively, leading to job cuts due to increased employment opportunities and self-production in various countries.

Q1. Define what is meant by economic regulation.
In order to complete the Economic Cycle , which connects the producer to consumers via the
regulators and the input providers we need to keep check on the various operations. Now
regulations means that performance of the operations is not just cost effective but if efficient just
well. So if we consider the example of trade the regulations means that trade takes place without
any barriers and the regulations are followed across the border. Economic regulation here means
that if there is fair competition which is there across the borders and quality is maintained across the
global production.
Why is transportation economic deregulation important?
Economic regulation is very important across the transportation because transport is the only way
through which physical goods can be transferred across the boundaries. If the goods quality and
quantity is not delivered as promised then it may lead to bad reputation. So the regulation means
that there is no arbitrage opportunity which happens with the goods and also the prices are in
control. Many times it happens that the goods are sold without paying proper taxes and duties
across countries and which is what taken care by regulation. Sometimes there is cheap dumping that
takes place because countries take advantage of the consumer behaviour. So regulating authorities
takes care of these optimal strategies.
Now the main reason why deregulation is important is because regulatory transportation may lead
to increase in the price of the selling. Also it may not allow the comparative advantage to happen.
Q2. How has globalization impacted the transportation manager's job?
Globalization has impacted the manager’s job more in negative sense as there are jobs cutting. The
main reason why this happens is because previously there would be production only in place where
production was specialised but later on all the countries try to produce on their own mostly and why
this happens is due to increasing employment opportunities and also to ensure quality and less debt.
So manager’s jobs are reduced because they need to less regulate transport and long route
transports are reduced.
References:
Feenstra, R. C. (1998). Integration of trade and disintegration of production in the global
economy. Journal of economic Perspectives, 12(4), 31-50.
Winston, C. (1993). Economic deregulation: Days of reckoning for microeconomists. Journal of
economic literature, 31(3), 1263-1289.
Bardi, E. J., & Tracey, M. (1991). Transportation outsourcing: a survey of US practices. International
Journal of Physical Distribution & Logistics Management, 21(3), 15-21.
Edwards, L. (2001). Globalisation and the skills bias of occupational employment in South
Africa. South African Journal of Economics, 69(1), 40-71.