Question

As markets for some products and services experience greater global competition, what is the likely consequence for the incidence of price discrimination? Do you think global competition fosters or impedes price discrimination? Can you give any examples from your own work experience?

Answer 1

Yes, the statement is indeed true where the global competition can get to foster or impede price discrimination and this is because of the fact that unless there's a price discrimination, there's no scope for the country to gain a comparative advantage and the overall consequence of price discrimination is the comparative advantage.

For example - India has comparative advantage in jute production when compared to other countries like US and at that time the price discrimination can occur where the exports can cost less from India than other countries all in all.