maandag 27 februari 2006

Quest for more competition

or how the quest for more competition of the European Commission can have the opposite effect. />

Since more competition usually means lower prices for customers, everyone was in favour of
these rulings.
Now, lower prices means also lower margins, it also means that if companies want
to maintain their level of profits
it would require cost-cuttings as well. Now unfortunately most
effective cost-cuttings are done where the costs are highest.
Till this day this is still labour,
the way companies are doing this is either fire people or do major mergers. So instead of 2 persons />in 1(2) companies doing the same job, ending in only 1 person doing this job. If you see this on a
european scale, this in effect lowers
the wages as well. So now, is more competition better for
the european population or for it's companies in the long run? Strange how good measures can have a twist
and why the gouvernment should thing twice before adding additional legislation.

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