MCE/MCE+1 – Blog Post Prompt – Sunday July 21, 2019 – Regulation For/Against
Your Name: Connor Damon
Business Issue with Competing Pressures: Based on what you see in the three videos, identify a specific issue with competing pressures. How is a business issue influenced by a social concern?
One issue with competing pressure that is present in the videos is that there is incentive for companies to capitalize on the popularity of a good, such as Parmigiano Reggiano, and create cheap and inauthentic knockoffs. The problem with knockoffs can be severe for the original companies and customers alike. The original company is undercut in the market, which although generally better for the consumer, decreases the demand for the original company’s product. For me personally, I am lactose intolerant, so the lactose-free distinction of Parmigiano Reggiano allows me to eat this specific type of cheese; however, if the knockoff brands of Parmesan cheese do not take the same care to address this quality of the cheese, then I could get sick. The issue of knockoffs is fueled by the demand for inexpensive alternatives to high quality brands like Parmigiano Reggiano.
Rationales For and Against Regulation: Based on the issue you have selected, make one statement for government regulation to address the issue (rationale for regulation) and one statement for minimal regulation/the free market to address the issue (rationale against regulation):
The argument for government regulation of these brands is to ensure that the customer is always getting a high-quality product as opposed to a brand that is forced to put “100% Parmesan” on the container of their product. In Europe, the government regulation also helps the consumer distinguish which cheese is authentic and from the Parma region of Italy while allowing other brands to sell their knockoffs as Pamsello Italiano.
The argument against government regulation of these brands is that it creates a market failure and prohibits other companies from entering the Parmesan market. Without government regulation, consumers have the opportunity to decide between authentic and knockoff brands based on what they are able to afford and willing to pay, rather than only having one true option.
Other Examples Like This?: Based on the competing pressures you see in this video, identify another issue that has an ongoing debate among people who argue for government regulation to address the issue versus those who argue that the free market should address the issue.
Another example of an issue that is constantly in debate around the topic of government regulation is in the firearms industry. Supporters of the market for firearms in America argue that the firearms industry does not need to be regulated based on the Second Amendment rights given by the US Constitution. On the other hand, many people believe that the firearms industry is in fact not regulated enough, and should be stricter in terms of who can buy these weapons and which kinds can be available.