Extremely difficult to create and rare but QUASI MONOPOLIES are NOT Quasi

Extremely difficult to create and rare but quasi

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- Extremely difficult to create, and rare, but QUASI- MONOPOLIES are NOT. Quasi- Monopoly - Market with a few large suppliers but there is a very little competition. - Over time, every quasi-monopoly is undone by the entry of further producers into the market. - Self-liquidating Ways to create quasi-monopoly - System of patents - reserves rights in an "invention" for a specified number of years - State restrictions on imports and exports (so-called protectionist measures) - State subsidies and tax benefits - ability of strong states to use their muscle to prevent weaker states from creating counter protectionist measures - role of the states as large-scale buyers of certain products willing to pay excessive prices II. Firms - Main actors in the market - Bankruptcy Absorption by a more powerful firm daily bread of the capitalist enterprise PRODUCTS/PRODUCTION OF A CAPITALIST WORLD- ECONOMY 1. Core-like products/production process - those that are controlled by quasi-monopolies - tend to group themselves in a few states and to constitute the bulk of the production activity in such states. - will eventually become a peripheral process in the future. 2. Peripheral products/production process - truly competitive - tend to be scattered among a large number of states and to constitute the bulk of the production activity in these states. 3. Semi peripheral products/ production process - mix of core-like and peripheral products/ production process. III. States - A major leading industry will be a major stimulus to the expansion of the world-economy. As more and more firms enter the market of the erstwhile quasi-monopoly, there will be:
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When this happens, we tend to see a reversal of the cyclical curve of the world-economy. Stagnation or Recession - Rates of unemployment rise worldwide. - Producers seek to reduce costs. The expansion and contraction process of the world-economy can be drawn as an up-and-down curve of the so- called A- (expansion) and B- (stagnation) phases. Kondratieff Cycle - Also called long wave cycle - Named after the Russian economist Nikolai Kondratieff - A cycle consisting of an A-phase followed by a B-phase - More or less 50 to 60 years in length IV. Household It consists of 3 to 10 persons who pool multiple sources of income in order to survive collectively. Persons are obliged to provide income for the group and to share in the consumption resulting from this income. Five Kinds of Income in the Modern World-System 1. Wage-Income - Payment (usually in money form) - May be payment by time employed or by work accomplished 2. Subsistence Activity - We usually define this type of work too narrowly, taking it to mean only the efforts of rural persons to grow food and produce necessities for their own consumption without passing through a market. 3. Petty Commodity Production - A petty commodity is a product produced within the boundaries of the household but sold for cash on a wider market.
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