Quote:
Originally Posted by will1978
Dear djvm98,
Would you tell me the key word about the theory so I can google it. 
For me,the price of alkoholi may not relatively high. Comparing it with my place, it's similar. I slightly know... both heavy tax and high price restrict your consuming ability...
But besides theory, there are some structure reasons as well. Many places, like Japan, as far as I know, basically adopte relatively self-contained measures to protect Japanese companies from overseas competition, in return, benefited domestic companies provide financial support to politicians in election. The losers are the people, suffering from unreasonable high price. If they open their market, people will be benefited and enjoy happier lives, but these domestic companies would be forced to face their fierce opponents, many of them would be bankrupt. Of course they would impose pressure on their goverment not to open the market.
Is there certain kind of structure reasons like Japan case in EU members? |
Well as a matter of fact that's MY theory, so I doubt you'll find it on Google hehe...
You're right high alcohol prices discourage consuming, but they have to arrive to this point because another factor: there wasn't an alcohol-drinking culture, so people just drink, drink and drink until they fall down. That's also the reason for the Alko stores government monopoly.
That Japan case you talk about is the classical protectionism. Which is not anymore a good macroeconomical practice for any country, since that only provokes you (and your country's companies) to be isolated from the rest of commerce world and to delay your competitiviness evolution.
What comes to the EU, as far as I know, protectionism is only applying temporarily in the case of the new members, in order to put them in the same economic competitive level the rest of countries are already on. Then, facing abroad yes there are still some trade restrictions, mostly to protect European agricultural sector. On the other side the EU is actively signing free trade agreements with emerging economies, to take advantage of low prices on basic supplies.
Well I am afraid we are already totally out of this list topic! hehe... by the way which is your country? you have mentioned some cases from your homeland but not the name..