Economic Regulation and Transportation Deregulation: Importance and Impact on Manager's Job


Added on  2019-09-26

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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 theglobal 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 thattakes 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 whythis 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.

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