Competitive Industries - It is a market where all firms sell an identical produc

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Competitive Industries - It is a market where all firms sell an identical product.The firms cannot control the market price of the product. And buyers have a complete information about the product. Concentrated Industries - Industry is dominated by a few large firms that shape its direction and evolution.Here few large companies may have the high market share. GCC - Gulf Cooperation Council : A law was established with an agreement between Saudi Arabia, Bahrain, Oman, Quatar and Kuwait. This agreement was in rule from 1981. Generally GCC law concentrates on Antidumping, Countervailing measures and safeguards. This may have 12 dimensions. Investment policy and promotion, priviatisation and public private partnership, Tax policy and administration, Trade policy and Facilitation, Better business regulation, SME policy and regulation, Anti - corruption, Corporate governance, Business law and commercial conflict resolution, Infrastructure, Human capital, Access to finance. Main features are Anti-competitive agreements, abuse of dominant positions, corporate transactions such as mergers that can result in a market becoming less competitive. Clear aims of combatting monopolistic practices. No absolute prohibition on price fixing. Merger control procedure. Financial and operational sanctions for competition law breaches. Widespread exemptions.   

Explanation / Answer

Q 3) “Competitive industries are considered to be more efficient than the concentrated one”. Critically analyse this statement within the basis of GCC‘s legislative measures designed to preserve a competitive market.

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