EU postal market

This paper examines the possible welfare effects of the proliferation of the EX. postal market while considering a range of markets. Firstly, the paper considers various points of view concerning the impacts of the Full Market Opening. Secondly.. 2. Impacts of the Full Market Opening An Increase In competition generally stimulates companies to be more Innovative, alter their pricing practices and provide high quality services to their customers.

Postal operators from various countries have diverse pollens concerning the impacts of the Full Market Opening (FM). The Polish postal operator was concerned hat the elimination of the monopoly would cause the quality of service to decline and possibly cause delays in delivery whereas the united Kingdom’s Royal Mail believed that an increase in competition would be beneficial for both the company and the consumer. Postal services liberation’s, 2007) under the FM, Member States are obliged to provide every E citizen with more reliable and attainable postal services by opening branches in convenient locations. (Postal market: final barriers to total liberation’s to be lifted by 2009, 2006) Due to a rise in competition, rims would no longer be present in an Imperfectly competitive market (CM) but would now be part of a perfectly competitive market (PC). In a PC, a company would be able to maxillae Its profits when the market price Is equal to the marginal cost.

It is more profitable for a company to be in a PC due to the fact that in an CM the company would have to lower the prices of the units that they want to sell in order to sell an additional unit. (Perfect competition – competitive markets, 2008) The liberation’s of the ELI Postal Market would cause the prices of services to be determined by the market, making all postal operators appreciates. This would be beneficial to citizens of the E because the USPS would not be able to charge unreasonable prices. 3.

Advantages and disadvantages for different economies The liberation’s of the E Postal Market Includes many advantages and disadvantages for the economies of Individual Member States. The full Illiberality’s for all E countries has been delayed until the 1st January 201 1 due to the fact that numerous “countries such as France, Italy, Spain, Greece, Belgium, Hungary and resulting in a weaker customer service and huge Job losses. (Postal services liberation’s, 2007) The postal market provides employment opportunities to 1. Million people while generating an annual turnover of 1% of the EX. Gross Domestic Product. (Postal services liberation’s, 2007) By abolishing the barriers to a FM, new jobs opportunities will be created which will benefit many economies in the EX. where unemployment rates are high. 4. Conclusion Liberalizing causes prices to be altered, quality to be improved and companies to be more innovative, therefore the liberalizing of the EX. Postal Market will result in increased welfare for all EX. citizens.