routemarker
Looking for the Way out ?
what are the pros and cons of microeconomic reform? cite specific examples
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pros and cons of microeconomic reform (1 Viewer)
- Thread starter routemarker
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routemarker
Looking for the Way out ?
Pros
Increases productive, dynamic, intertemporal and allocative efficiency.
Increases competition by exposing Australian firms to international markets through protection reduction and domestically through competition policy.
Providing ‘cash up’ incentives to Australian firms ‘to adopt worlds best practices’
Cons
Resistance from industry and interest groups even if reform was of national economic interest.
Consumers of public sector provided services are often the last to be given a hearing in public debates.
Difficult trade-offs between short-term macroeconomic costs and the long-term microeconomic benefits.
well taht was my answer, i had to hand in the question last week it was for a General education course at uni but thanks for any help that was given.
Increases productive, dynamic, intertemporal and allocative efficiency.
Increases competition by exposing Australian firms to international markets through protection reduction and domestically through competition policy.
Providing ‘cash up’ incentives to Australian firms ‘to adopt worlds best practices’
Cons
Resistance from industry and interest groups even if reform was of national economic interest.
Consumers of public sector provided services are often the last to be given a hearing in public debates.
Difficult trade-offs between short-term macroeconomic costs and the long-term microeconomic benefits.
well taht was my answer, i had to hand in the question last week it was for a General education course at uni but thanks for any help that was given.
Another major disadvantage of microreform is short term structural unemployment in those industries that are most inefficient (even though the improvements in efficiency across the board will lead to better employment opportunities in the future)