competition, protecting suppliers and workers

Question 1

what benefits do small businesses and startups bring

Answer 1

• competition
• jobs
• greater consumer choice
• sure of exports
• innovation

Question 2

problems start ups face

Answer 2

• credit - banks view smaller businesses as a greater risk
• business skills - some people feel they lack the skills to succeed in business
• recruitment - finding competent staff

Question 3

how can gov support startups

Answer 3

• provision of info on setup
• deregulate to make easy to enter market
• make set up process easier
• educational reform

Question 4

competitive tenderin?

Answer 4

private sector firms compete to win contracts to perform tasks on behalf of government. Gov then chooses which firm

Question 5

what is PFI

Answer 5

private finance initiative:

gov takes competitive bids for and then buys a whole investment project package

Question 6

adv of PFI

Answer 6

efficiency
extra investment
delivery - private not paid until asset delivered
dynamic efficiency

Question 7

disadvantage of PFI

Answer 7

debt costs: since 07, cost of private sector finance increased
inflexibility and poor value for money
risk
administrative costs
dependence on PFI

Question 8

what is deregulation

Answer 8

removal of government regulations

Question 9

aim of deregulation

Answer 9

can reduce barriers to entry/exit increasing contestability

Question 10

advantages of deregulation

Answer 10

• price - contest ability = lower price
• quality
• innovatio

Question 11

disadvantages of deregulation

Answer 11

• market stability - financial markets it can lead firms to take excessive risks and load up debt which can cause financial market failure
• public safety - grenfell

Question 12

what did Tesco do

Answer 12

• delayed payments to suppliers deliberately and paid them less than owed to meet financial targets

fined £214million in 2014

Question 13

punishments in order to protect suppliers

Answer 13

• fines and jail sentences
• increase contestability - reduce monopsony power
• minimum prices

Question 14

how to protect workers

Answer 14

• minimum wages
• legislation to improve working conditions
• fines and jail sentences against employers
• very rare do employers/ workers mistreating suppliers or workers face a jail sentence, suggest insignificant impact.

Question 15

eval with idea of

Answer 15

law of unintended consequences

Question 16

Restrictions on monopsony power

Answer 16

• anti monopsony laws, independent regulator and fines

Question 17

Workers rights

Answer 17

• gov protects employees through health safety laws, employment contracts, etc