Register now or log in to join your professional community.
And do you agree that it is shrinking to the minimum ?
The determining of market prices through the dynamic interaction of supply and demand is the basic building block of economics
But when government adopts a price control, it defines the market price of a product and forces all, or a large percentage, of transactions to take place at that price instead of the equilibrium price set through the interaction between supply and demand. Since supply and demand shift constantly in response to tastes and costs, but the government price will change only after a lengthy political process, the government price will effectively never be an equilibrium price. This means that the government price will be either too high or too low
The significant role played by the government of Dubai in the model of economic development the world took him and considered it an example of the role of the state: it was economic freedom policy, which should be the general rule, so it has identified the role of the state in economic activity at the lower unit and in cases of necessity just like re-ownership and raise the level of distribution the income of the citizen and the means of production ..
I think Goverment interference has reduced compared to 15-20 years back mainly on two front, one is on law and second is on few policy decisions.
I prefer to have government interference mainly in two areas, FDI and Import and exports
Governments have done their work, they have played their roles as far business is concerned. I don't think the governments have so restrictive, rigid or harsh on business undertakings. On the other hand, as markets continue to grow (global markert), there are various challanges which may occur (anticipated or not anticipated) in correspondence to the markets. Some of the challenges may be as a result of companies, individuals or countries' own doing. At this point in time, governments may need to come in to stabilize & regulate business activities in this regard. But if the governments don't any problems or challenges, they might not find any reason to interfere. Thanx for the invitation.
Government when feel prices is too high(inflation)then it takes many steps to control them .... and major tool is fiscal policy and state bank by monetory police
There are several wonderful answers herein already from great professionals, nothing to add
I see that there is no significant influence of governments in the Arab country in these circumstances and the increasing value of the monopoly daily either significantly or not significantly. But on the other level, governments intervene in the foreign country, well intervention and may amount to a very good
I think that the government might choose to intervene in markets to combat market inequities through regulation, taxation, and subsidies, it may also intervene in markets to promote general economic fairness. On the other hand Maximizing social welfare is one of the most common and best understood reasons for government intervention. Examples of this include breaking up monopolies and regulating negative externalities like pollution. However, Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.
I do not think today's governments can fully control the market and prices, but Alhdih censorship and strict laws
Thanks for the invite ............................ question needs to be an expert
I agree with Mr Sameer .....................................
