1. The black economy is all economic activity in a given economy that occurs outside or in violation of the prevailing laws and regulations of society.Activity in the black economy is often illegal, usually untaxed, and rarely recorded by official economic statistics. What problems will arise if black economy occured in a country?
The Black Economy or Black market certainly has an impact on state finances:
The first, is that the government loses revenue. The purpose of transactions made on the black market is to avoid any kind of tax paid to the government. Because of this, the government can lose revenue due to the black market.
Second, the black market causes losses for legal industries. The number of types of goods that can be found at lower prices than official goods can certainly make the legal industry suffer losses due to the declining number of consumers. The most frequently encountered are smartphones. Smartphones on the black market are usually sold at a much cheaper price than in official stores.
Third, the black market makes it difficult for the country's economic development. Everything on the black market is illegal and all transactions are not recorded. In the absence of such records, the government will find it difficult to estimate the economic status of the country. As a result, it is also difficult for the government to plan and implement policies for the country's economic development.
2. There are some examples of companies which are categorized as first mover in Indonesia like, Aqua, Indomie, Telkomsel and Gojek. Up to now, those companies still exist while there are some new competitors emerge to compete and grab their market. If you have a company, and you are categorized as first mover in that industry,how to keep the advantage of first mover in your company so that your company can beat the new competitor?
To maintain excellence as a
First Mover and be able to beat new competitors in the business and also become
a reliable businessman, the main requirement is to be able and always to do
good and precise market analysis. Many people say that market analysis is an
important part of marketing management. By doing a good and appropriate market
analysis, you will be able to better understand the actual market situation so
that the strategy you take to become the first mover in marketing your business
products will work well, so that your business profits will be obtained.
Market analysis is the activity
of analyzing or organizing to study various problems regarding market
conditions. This market analysis is an important thing that everyone should
know and also becomes the basis and foundation for the next marketing strategy.
Determining the target market for First Movers is very important because the
company cannot serve all consumers or buyers in the market. There are too many
buyers with varying or varied needs and wants, so the company must identify
which part of the market to target. Thus, the success of the business will
affect how well and appropriately market analysis is carried out.
First Movers Business Success and
Advantage is any advantage a company earns by being the first to offer a
product or service to the market. First Movers have the opportunity to get the
greatest long term profit from the product introduction that is the result of
their previous market analysis.
3. Indonesian
Railways Company (PT. KAI) is the sole operator of public railways in
Indonesia. It is completely state-owned and pays track access charges to the
government. It can be said that PT. KAI monopolizes the railway industry in
Indonesia since there is no competitor in that industry. Based on that
condition, What kind of monopoly that is done by PT.KAI? is it pure monopoly or
natural monopoly? Please explain the reason
Monopoly by PT. KAI is a
Natural Monopoly. In the world of economics and business, natural monopoly is a
type of monopoly that exists because of the high initial costs or the strong
economies of scale in doing business in a particular industry. A firm with a
natural monopoly is the sole provider of a product or service to an industry in
a given geographic area.
PT. Indonesian Railways (PT.
KAI). PT. KAI is a State-Owned Enterprise (BUMN) that provides land
transportation services. PT. KAI does not face direct competition from other
railway companies because until now there is no private rail ground
transportation service provider, even though PT. KAI does not experience direct
competition but PT. KAI will face indirect competition from other land
transportation services, such as buses. The Yogyakarta-Surabaya route will not
have direct competition from other trains. However, it will face indirect
competition from buses traveling from Yogyakarat-Surabaya, as well as travel.
Natural monopolies arise in
industries that require unique raw materials, technologies, or similar factors
to operate. This monopoly can run all the time following market conditions, but
unfair business practices can hinder competition.
4. President
Joko Widodo alluded to improper practices in digital trade that have killed
domestic Micro, Small and Medium Enterprises (UMKM). This practice is predatory
pricing, selling goods at very cheap price in e-commerce by offering discounts
to customers.What will happen to the market if this situation continues?
Predatory pricing practices have occurred in the digital and e-commerce realms. The price cut will indeed attract the attention of buyers, but when this is done by 'selling at a loss', aka price subsidies rather than cutting margins, the industry becomes unhealthy.
As a result, other players who
want to participate in gaining market share inevitably have to do the same
price discount. This will continue to be reciprocated going forward. The most
benefiting from this practice, according to Untung, is a platform that has a
large capital power.
Predatory pricing is usually
carried out by companies whose business scale is large and efficient. Thus they
can sell their goods so low as to kill their competitors, Companies that are
not prepared for this practice will fall one by one. Inevitably there will be
monopolistic practices later by big companies.
Predatory pricing and various forms of discount promos will make the market more price sensitive. Consumers will look for lower prices and less value more quality.
On the other hand, manufacturers such as Small and Medium Enterprises (MSMEs) with minimal margins will lack costs for product development. Finally, the products to be created are more oriented towards cheap than quality.