What is the impact of Fiscal Policy?

It appears that the impact of monetary policy and the exchange rate on agricultural competitiveness has increased in recent years due to an economic context characterized by the conjunction of three factors: the indebtedness of farmers and States, the liberalization of agricultural markets and growing economic conditions.

The application for a bilateral comparison between the United States and the European Union makes it clear that this impact is fluctuating from one year to another, but still significant. Variable exchange rates and interest rates of central banks are two factors more essential than in the past agricultural competitiveness of State.

Competition Policy

The term "competition policy" is used with different meanings in different countries and contexts. In its broadest sense, it includes all measures which affect competition in a market, including trade policy measures, regulatory and fight against anticompetitive practices of private and public companies. Within the narrow meaning, the term refers to the last of these aspects, that is to say, the laws or regimes for anti-competitive behavior of companies.

Reasons should include the relationship between trade and competition in the work program of the WTO,  Concerns about possible adverse effects of anticompetitive practices in business (often called " restrictive business practices ") have been expressed already fifty years ago when the GATT was created.

Increased interest in the debate on competition policy observed in recent years is attributable to many factors, including the following four:

·         It appears more and more that as formal barriers to trade are dismantled by successive rounds of negotiations of commercial importance of restrictions and distortions resulting from business practices;

·         The global economy is increasingly integrated, not only under the influence of liberalization of international trade, but also because of considerable expansion of foreign direct investment. Therefore, anti-competitive practices gain increasingly a cross-border dimension and affect many countries and in some cases the world;

·         There is a proliferation of international rules at the bilateral, regional and multilateral levels, to protect the interests of foreign companies operating in the territory of a country. Some countries believe that these rules of organizations should be complemented by a strengthening of international cooperation in the fight against the trade anticompetitive business practices in question;

·         There is a growing convergence of views, tends to blur the old divisions North-South and East-West, the fact that competition law is often the appropriate means to address against the anti-competitive practices, even if there is still much to be done to agree on points of detail.

Pricing and Costing

Costing and pricing steps are closely related to the definition of product prototype. They aim at pricing of product prototype that will be tested. Costing, prior to the step of charging, should allow a better understanding of the cost structure of the institution to ensure that the price proposed will ensure the long term viability of the new product. It is easier to set the price of a new product or an improved product if the cost of existing products is already known. The principle is to rely on the actual costs to estimate the expected costs for a new product (Guadalupe, 2007).

The calculation of cost of goods is to analyze income and expenses in the income statement by product offered, i.e. to allocate costs to products. The allocation of costs to products addresses a fundamental business principle: a company (usually) to maximize its profits by selling its products, and all costs of the company must be connected to this objective, and thus one or more product (s). Therefore, even indirect and even seemingly unrelated products, a cost must always be attributed to one or more product (s). This basic principle is also valid for MFIs, although the goal is to achieve sustainability and not to maximize profits.

In order to position the company and its competitors in a given market is realized in two directions: the environment, in terms of attractiveness of the sector (opportunities and threats), and the company in terms of intrinsic potential (strengths and weaknesses). It can inform strategic choices, confirm or disprove. It sometimes involves a redefinition of business processes of the company.

The changing environment often explains the strategy (concept of competitive pressure from the environment). Thus, the diagnosis for all the elements that influence the company (defensive aspect of the strategy) on which it can act (offensive aspect of the strategy). It is to identify market factors (forces present) and non-market factors (regulation, for example).