Author Archive

Chocolate prices are Rising

Hershey and Mars take up 2/3 of the chocolate industry in the U.S. and they both decided that prices are going to increase, as much as 7% on each chocolate bar. If both of these companies decided to form a cartel they would be able to because they hold 2/3 of the whole market. There is also a coco supply problem that is happening in South Africa. Since the supply is decreasing it causes a spike in the price of chocolate.


Is Free Trade Bad for the Economy?

In the video, it explains why tariffs are implemented. For example, The Smooth Poly Tariff, which put a tax on the imported agricultural goods coming from Great Britain. This tariff promoted the buying of American made agricultural goods because it artificially made foreign goods very expensive compared to domestic goods. Laws like these are called protectionist laws. Free trade is basically a compromise between countries about the regulation and removal of protectionist laws, while also making sure economies do not fall apart without them. A problem with free trade is the potential to hurt consumers. A common complaint in the US is that free trade leads to outsourcing and a lost of domestic jobs (especially in the US). In conclusion, free trade can make goods cheaper, but it comes at the expense of thousands of jobs.

Comments (1)