does free trade work?

malakadang · Apr 21, 2011

SuF said: ↑

Monopolies are not set up by people with tons of money. They require not only a history and implantation within the field of business that they are in, but also cash in order to continue to promote their, already highly successful, product in the marketplace. Advertising is one of the key aspects of any business as in order to attract customers, you must be known to them. Large companies already are known to people but also have the resources to be able to continue to press this brand recognition on people. The method of setting up monopolies that is mainly taught in schools is the "destroy them with lower prices" model. This is a major factor but it is much more complex than the simple version you have outlined. The larger a company gets, the more influence it has in its field of business. This comes from the reduction of competitors from the success of their own business. They also begin to pay more for their employees, which are top of the grade, which others can not do due to the lack of funds. Thus, becoming better or best at making or doing something allows you do become even better and so on. People would rather work at a great company than a not so great company. This influence and market share allows them to control costs in a way others can not do. If you enter into contracts with others to buy all of their product, at a low price in return for guaranteed sales, you have already made it so that your better product costs less than the worse competitors product. They will make less money than they could otherwise by leaving their price low (people pay much more for what they think are quality services even if they are overpriced).
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Very true, however, all monopolies are multi billion dollar companies, which have grown over time.
I know how businesses work, how people will pay more for service, or a reputable brand. I know how brand advertising and all that works.

For the most part their are 2 forms of monopolies:

Coercive monopolies.
Natural monopolies.

If your against monopolies, then you are against the current system, as there are monopolies everywhere.

If you talk about something like Google, it is not as simple as this at all. The other factors I have explained come into play as well.
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In a free market, if an entrepreneur sees an open field of business, he will fill the void. He will not be subjective to stacks of licenses, and disincentives to start his venture.

I like regulated Capitalism even though it is flawed as pure capitalism is also flawed. I would also like to ask whether or not patents, workers rights, etc, are going to be apart of this debate or whether or not you think a free market can exist with these safeguards in place.
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I am not 100% sure on the full contest of the capitalist and free market societies.

That being said, lets start by saying that I do not believe in coercion. I also believe that there should be much much if any regulation on barriers of entry to a market. If I want to set up a business, I should not have to obtain numerous rubbish documents on how to do the obvious.

Cool Story · Apr 23, 2011

Free trade? I don't think it can exist. There will always be boundaries and restrictions set in a market. In saying that, I'm against it - competition aides growth and therefore a stronger economy.

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does free trade work?

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does free trade work?

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