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US Antitrust Policy and International Competition

What does the U.S. government hope to achieve through the use of its antitrust policy? How does international competition affect domestic antitrust policy?

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Use has been made of material at the following sites in answering the questions
www.econlib.org
http://www.usdoj.gov/atr/public/guidelines/internat.htm
http://www.law.indiana.edu/fclj/pubs/v47/no1/page.html

What does the U.S. government hope to achieve through the use of its antitrust policy?
Government intervenes in the economy through the laws it enacts and enforces. Economists generally believe that monopolies and other restraints of trade are bad for the economy as they usually reduce total output and, therefore hurt the economy. Government therefore has a number of policies that affect monopoly and market power. Two such policies that are intended to reduce monopoly are regulation and antitrust policy.

Antitrust laws protect competitive process that is essential for the functioning of the free market economy. They enhance consumer choice and promote competitive prices and as a result the society as a whole benefits from the best possible allocation of resources. Anti trust laws prevent practices that impede competition. A practice is illegal only if ...

Solution Summary

The solution discusses what the U.S. government hopes to achieve through the use of its antitrust policy and how international competition affects domestic antitrust policy. This solution is 636 words.

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