What is a regulated market?

The

regulated market is a specific sector and sometimes the national environment in general, where the purchase and sale of goods and services is only allowed with a certain level of government supervision, involvement or manipulation. Extreme examples of a regulated market environment are those where the entire industry is nationalized by the government, such as public services, telecommunications and military equipment production. Similarly, when these industries are privatized, for example in the period of reforms in the former Soviet block countries after the dissolution of the Soviet Union at the end of 80. To 1991, markets are often under relatively strict control of the government behind the scenes. China. The Brazilian Ministry of Health sets control of drug prices for local consumption and is protected by Brazi -producers Lian Generic versions of drugs to the extent that foreign companies have largely failed when entering the pharmaceutical market. Since 2008, local Brazilian companies have controlled 80% of the generic drug market in Brazil through this regulation.

Russian protectionist measures for local pharmaceutical production include a state price for price control, known as napnitnelnelnoe lekarstatennoe obespechenia (DLO) (DLO), translated as the provision of supplementary drugs. Like many regulated markets, the entry to enter the pharmaceutical environment in India can be difficult for large multinational corporations, because mental ownership and patent drug protection are seemingly lax. This is often used as a strategy by regulated governments on the market to prevent foreign manufacturers. China is a step further and attempts to prevent foreign competitors from fragmenting its markets, so far they can focus their distribution on only one particular province. The Chinese government also tends to slowly approve many drugs that are otherwise widely distributed elsewhere.

While some nations delegulate markets to improve the profitability of private SPOThe ease and strengthened their economies, this practice is never versatile. A good example is airlines that have been deregulated in the United States and Australia in recent years. They are still strongly regulated in the UK and South American countries of Colombia, Ecuador and Venezuela.

A ticket prices in the UK since 2005 have been checked by the National Aviation Authority (CAA), although she underwent some deregulation during 1979, when Margaret Thatcher became prime minister. The United States has also undergone more thorough deregulation during 1979, eliminating price controls, selection of route for airlines hubs, etc. However, the aerial industry is still partially regulated with the management of transport safety (TSA), which has strict control over safety and some aspects of trade.

Most large industries have a regulated market element in some respects, but the level of control is very different. Medical diamondL is unique among industrialized nations in that they are largely unregulated, although all healthcare professionals must be licensed licensed by the government approved. Laws on long -term care facilities and others are widespread.

The most apparent purpose of the most regulated market activity, such as the purpose performed by food and drug management (FDA) to control the distribution of drugs in the US, is to protect their citizens from damage and deprivation. However, controlled market practices are an essential part of any mature, mixed economy that supports the ideals of the free market. As a gentle method of protectionism of trade, the regulated market can prevent foreign competitors and strengthen the success of local economics.