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Promoting A Stable Market - Coggle Diagram
Promoting A Stable Market
What is a Monoply?
A monopoly occurs when there is one group or overall company, controlling multiple companies.
What makes a monoply bad?
That company in a monopoly can have complete control over pricing.
A monopoly can stop competition between companies.
Monopolies are less incentive to create better quality products despite them having no competition.
An example of a monopoly is Google itself.
Ensuring the Safety of the Consumer
Health Canada's role sets regulations for food products. It displays us what is in the food and what it does as labelled. The labels display the nutrition values of food.
Health Canada's Role
CSA's Role
The CSA (Canada Standards Association) ensure that products are safe for the use of them. To show that they have reviewed the product, a sticker representing the CSA is on the product telling us it was tested. Testings such as scientific and extensive tests were made to the product.
Product Recalls
When the product has passed all testings, it is safe to put it on the market. The government takes a roll on product recalling as they can return products back to manufacturing if it becomes unsafe to the market as all products have malfunctions that are unpredictable to happen.
Environmental Protection
Environmental protection is important because of products can pollute our environment and organisms in it. This is the cause of when companies care more about their own profit rather what they are doing to the environment.
An example of harm to the environment which causes regulations is deforestation and harvestry. Companies that use wood products practically 'crown' or own the land so they allow themselves to cut down trees in order to support their business.
Labour Laws
Labour laws are regulations between the worker, the company and those who overall profit the product. Apart of labour laws is safety and health as the government helps enforce standards about safety. This makes them investigate workplace accidents and injuries.
Crown Corporations
Crown Corporations are companies that are wholly owned by federal (government) or by province's organizations that work like a private business.
Crown Corporations helps shape what Canada is like as with supporting and fulfilling needs for the help of energy and water.
An example of crown corporations is the bank of Canada.
Preventing Price Fixing
The government must make sure that companies cannot fix their prices in order to still be apart of the normal marketing forces. This makes the consumer able to buy the product cause the price is fair and affordable.
If companies go ahead and create a higher price of their own, it would be a sense of an upcoming monopoly. Price fixing goes against the law of supply and demand.
A law that stops price fixing is the
Competition Act
which ensures that the product is affordable and is fair enough for a good price.
An example:
"Canada Bread Company agreed to pay a $50 million fine on June 21 after pleading guilty to fixing the price of bread sold in grocery stores. This fine is the highest ever imposed for a cartel offence in Canada — more than seven times higher than the previous record."
- Retail Insider
The Debate over Canada Bread's $50 Million Price Fixing Fine [Op-Ed]
retail-insider.com
https://retail-insider.com
› retail-insider › 2023/08 › the-...
Drawbacks of the Government
As the government holds a ton of power in the land, they are possible to hold private information out of the public view. It is absolutely law breaking if the government were to sell/buy profit without publicizing it or letting their people know. This action is called insider-trading.
An example of a corrupt government: This country sells its stocks before the upcoming pandemic
Sometimes the government can be seen lazy and inefficient to their people and carry a hurtful reputation for it. Employees of the government are paid well by taxes causing them to be lazy .