27 august 2017 current affairs concepts - · pdf fileindonesia, singapore, philippines,...

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AUGUST 2017 CURRENT AFFAIRS CONCEPTS - ANALYSIS

MPs FRET OVER TRADE DEFICIT with ASEAN

Context

MPs fret over trade deficit with ASEAN Parliamentary Panel urges that India

should seek better market access for its products and services; India has

suffered a Trade deficit in respect of 5 ASEAN members.

ASEAN

The Association of South East Asian Nations (ASEAN) comprises of

Indonesia, Singapore, Philippines, Malaysia, Brunel, Thailand, Cambodia

etc.,

India has suffered a trade deficit in respect of 5 ASEAN members –

Malaysia, Indonesia, Thailand, Brunel and cao PDR over 2015-16 and 2016-

17 with the biggest deficit emerging in trade with Indonesia, the Committee

has noted.

Indonesia

Indonesia has committed as tariff elimination on 50% of its items which has

resulted in biggest trade deficit from India amongst all ASEAN member

states.

The Ministry of Commerce apprised the Panel that the imports of essential

commodities – Coal, Petroleum and Edible Oils from ASEAN constitute a

significant % of India s imports and if India will have a better or positive

balance of trade position.

The import of essential commodities will continue with or without this

trade agreements for the better market access.

Fourth Larger Partner

ASEAN is India s 4th

largest trading partner with total trade.

The total exports was $31.07 billion and import was $40.63 billion to ASEAN

which made a balance of $9.56 Billion

Processed Food Imports

India has faced high import tariffs and barriers, leading to a sharp drop in

trade.

India s food processing sector had raised concerns about the near absence

of quality norms for import of cheap processed food products from ASEAN

Countries.

Way forward

It has also sought efforts to improve India s access to services trade in

ASEAN, with a focus on increasing the footprint of Indian Banks and

financial institutions in the region.

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GM CROPS

What is GM Crops?

Genetically Modified Crops (GMCs, GM Crops or Biotech crops) are plants

used in agriculture, the DNA of which has been modified using genetic

engineering methods, the aim is to introduce a new trait to the plant which

doesn t occur naturally in the species.

How it is done?

GM is a technology that involves inserting DNA into the genome of an

organism. To produce a GM plant, new DNA is transferred into plant cells.

The cells are then grown in tissue culture where they develop in to plants

The seeds produced by these plants will inherit the new DNA

Advantages of GM Crops

They are a technology that has already been going on for many years.

These crop is different from the traditional methods of Plant breeding, as it

transfer genes from one species to another.

They are mostly believed to be safe, the product goes under some tests for

safety.

They have improved quality and taste, as well as increased nutrients.

They help ease the environmental impact by human activities.

They help in reduction of world hunger

Disadvantages of GM crops

They are not entirely believed to be safe

They contribute to the increase occurrences of allergic reactions

They alter the way nature works

They require labelling

They only have little to no economic value as they take more time to

mature and more effort to grow compared to natural crops.

HABEAS CORPUS

Article-32 of the Indian Constitution gives Individuals to approach Supreme

Court directly for the violation of their Fundamental Rights.

Article-32:- Right to Constitutional Remedies.

There are 5 types of Writs enshrined in this Article.

1 of those writs is Habeas Corpus

Habeas Corpus

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It literally means to have the body of

The court can ask any person who has been detained or imprisoned to be

physically brought before the court.

The court then examine the reason of his arrest/detention and if there is no

legal justification, then he can be set free.

This writ can be used in following cases

1) When a person is arrested and not produced before the court/magistrate

within 24hours.

2) When a person is arrested without any violation of a law

3) When detention is done intentionally to harm the person.

4) When a person is arrested under the laws which are unconstitutional.

Habeas Corpus writ is called as Bulwark (defensive wall) of individual liberty

against arbitrary detention.

Generally Procedure filling the petition is that a person who s Right is

violated must file the Petition.

But Habeas Corpus offer the detained person or any other person on his

behalf can file the petition.

Habeas Corpus writ is applicable to preventive detention also.

This Writ can be issued against both Public/Government authorities as well

as individuals.

Keywords

Writs/Orders: A form of written command in the name of court.

Arbitrary Detention: A person who is arrested without any evidence

Preventive Detention: Imprisonment of person with the aim of preventing

them from committing further offences

LEGISLATIVE PRIVILEGES NEEDS RATIONAL INTERPRETATION

HISTORICAL

They originated in 1833 Charter Act

They are privileges of Council

In 1919, it provided for freedom of speech in house and immune from

prosecution on any publication.

In 1935, members are protected from judiciary and they could make their

own privileges. In Constitution

Today , In our Constitution, we have privileges enjoyed by members are

1) Freedom of Speech, freedom from arrest

No member can be discriminated for expressing views

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No member can be arrested 40days before and after session of house and

during session also

Member can stop a person to publish any proceedings in house.

LEGISLATIVE PRIVILEGES

Context

There were many instances going on between Press and Legislative

Privileges in recent case of two Kannada journalists were sentenced to Jail

for 14years with 10,000 rupees fine by Karnataka Assembly because of

defamatory articles against L.A members. So there was need for

codification

KA High court told speaker of assembly to reconsider the arrest order and

asked to find a solution.

High Court could not give a fair judgment for this case because in Keshav

Singh case, Supreme Court did not define several points neither Parliament

or State legislatures have defined those points.

Codifications means Set of Systematic rules

Why Legislative Privileges

The constitution guaranteed for privileges for protecting freedom of speech

and expression in House

The legislature should use this power to punish for breach of these

privileges to protect independence of House

It means legislators have power to be judges to decide what their privileges

and what punishment should be awarded.

Article-105 pertains to powers, privileges of Parliament, members and

Committees and Article-194 protects the privileges

Problems with Privileges

The absence of codification gives House the freedom to decide when and

how breach of privilege occurs.

The question is whether legislature should be its own judge for its own

cause?

The journalists must have the freedom to write critical articles against all

elected representatives without any fear

The right to give and award sentence/punishment journalists is in hands of

Courts of Law (court) and KA legislative Assembly should not misuse its

power

There should be separation of powers. It is time to end discretionary

powers of politicians to become judges for their own mistakes/breaches

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1956 Parliament enacted protection of Publication Act to protect

Newspapers radio broadcasts but this has been repealed by Parliament.

Till now no law has been made by Parliament.

There was request from press commission for codification of privileges but

this has been reflected by the Parliament.

Way forward

Criticism is part of creative feedback

In democracy every elected representative are accountable to people

Article-105 and 194 are not absolute right

The legislature instead of working for protection of rights is now against

people and press

If Indians and press cannot criticize who will do?

The use of Parliamentary privileges arbitrarily is undemocratic and Supreme

Court needs to re-examine to prevent legislative dictatorship

SOCIAL MEDIA

Is it a promoter or inhibitor?

Twitter, Facebook, WhatsApp and other social media platforms have been

misused on several occasions to spread hate campaign in the country.

There were instances like

- Muzaffarnagar riots-2013 occurred due to fake videos circulated in social

media which killed 62 people.

- Due to fake rumors spread in Social media created panic in North

Eastern region living in Bangalore.

- Therefore social media is misused to radicalize teenagers

Intelligence Bureau has informed that spread of Indian

Mujahedeen(terrorist groups) and uses social media to create communal

tensions were biggest threats to internal security

What actions has been taken?

IB also blocked 2 websites belonging to ISIS. Propaganda on how to make

bombs etc.,

SEBI has framed guidelines to check possible misuse of social media in

capital markets to protect investors.

IT rules, 2011 under Section-79 of IT Act states that users should not

display, update, transmit any information that is harmful and affect

minority groups in the country.

Advantages of Social Media

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Social media is trying to bridge gap between rural and urban areas in terms

of information.

A report published by IMRB international internet and industrial body

mobile association of India gave that 35% growth has occurred in rural India

with the use of information provided by social media

Facebook is increasing pay and benefits for workers and employees. Many

people are joining private companies.

People can express thoughts, beliefs etc., with social media as a platform to

unite people.

Small sector business can be done in social media.

Disadvantages

Social media is affecting mental health of teenagers

Photos on social media creates violence and results in teenagers involve in

criminal activities.

Threats from people against girls and criminal cases are increasing due to

social media.

Negative social interactions – Addiction of pornography, cyberbullying etc

are increasing.

Way forward

There is no need to impose censorship but social media must find a solution

to trace identities that spreading hatred, defame posts.

Social media is a power to police. They should use to communicate with

people

PM Narendra Modi who is avid user of social media has emphasized FB

headquarters that it has huge strengths and benefits which can help

government to take correct steps with people opinion on government

expressed in Facebook.

It depends on us that how much we utilize and how much we get trapped

into it.

ISSUE OF PAID NEWS

The election commission had disqualified M.P. Irrigation Minister Narottam

mishra and banned from constitutional elections for three years for

involving in paid news.

What is paid News?

Paid news refers to engagement of media outlets in publishing favorable

articles in exchange of payment.

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This is mostly done by Politicians, businessmen and celebrities to improve

Public image or political goals.

Paid news is illegality and unethical practice of media

In Mishra case he submitted false account of expenses.

But he served his term after invalid election. This delay in taking a decision

has resulted in mockery of law.

Constitutional Provisions:

Art 10 (A) empowers commission to disqualify a candidate if he failed to

meet his given poll expenses

Adverse impact of paid news

It is an electoral malpractice which encourages expenditure limits and give

false information to citizens

The media autonomy is misused for corrupt practices during elections

campaign

The paid information will hamper people judgment to decide correct

opinion.

The payment modes usually violates tax laws and election laws.

What should be done?

There should be regulator in field which should impose penalties on

malpractice press council of India should be restructured and reconstituted

to make strict, impartial decisions.

There is an urgent need for ban on practices such as private treaties done

by newspaper companies

Private treaties is practice where a newspaper enters into deals with private

firms

They promise advertising in exchange for equity in the company

Conclusion:

Paid news involves both ethical and professional issue which cannot be

solved by government alone. It is solved by society itself.

Misuse of social media should be discouraged.

The role of black money should be curtailed.

Political funding should be made transparent.

Strong regulatory body is needed.

Marriage registration is now compulsory

The law commission has recommended compulsory registration for all

marriages, amending registration of birth and death act 1969.

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Law commission headed by retired Supreme Court Judge submitted 270

report for making registration mandatory.

Time limit to register marriage should be within 30 days and penalty

imposed is rs.5 per day.

Amendment bill should provide that if Birth or death or Marriage is not

registered within specified time limit then the Registrar shall on payment of

a late fee, register death or Birth.

(a) Within one year with permission of 36 authorities

(b) Within 30 days

(c) After one year only after getting order of first class Magistrate

In India marriages are performed under personal laws and some

communities do not like interference.

So the law commission made it clear its proposal doesn t interfere with

personal laws or disturb rights.

It only calls for registration irrespective of religion.

In 2012, A bill was introduced in parliament to make registration

compulsory and amend registration of Births and Death act 1969.

The amendment bill was passed by Rajya Sabha but could not take by Lok

Sabha. In 2013, it lapsed on dissolution of 15th

Lok Sabha in 2014.

IMPACT OF THIS:

It would address the growing evils child marriages, polygamy, Human

trafficking.

Record of marriages will be available to everyone irrespective of religion,

region, and custom and prove a check on matrimonial frauds.

Law commission suggested linking with Aadhar number to prevent fraud

marriages.

Fraud marriages are done by mostly NRIs so it can be prevented.

The recommendations will not interfere Muslim Personal law as they

perform Nikah nama where registration is done.

This will benefit people in identifying void marriages.

Way forward

1. State government must ensure that there are enough registration offices in

districts

2. Registration must be simple and decentralized so that people can accessible

it without too much expense or inconvenience

3. The process should be transparent and corruption free

Conclusion

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Like many social legislations it also involves effective implementation

The amended law would enable better implementation of civil and criminal

laws

Safe marriage registered process could build a solid foundation of family

system. It enhances social relationship

Only a solid family system could produce and sustain requirement of strong

nation.

COLLEGIUM BASED SELECTION OF ECS – ENSURING BETTER NEUTRALITY

As per Article-342(2):- Election Commission consists of Chief Election

Commissioner(CEC) and other Election Commissioners(EC)

About 4 decades EC was single member body with chief election

commissioner as its head.

Constitution guarantees that appointments should be made of law enacted

by Parliament but President till now appointed on advice of cabinet and

inclined to ruling party.

In 2006, there was proposal for seven member collegium headed by PM for

selection of CEC and EC

Others proposed Collegium were Lok sabha Speaker, Law Minister, Leaders

of opposition in LS and RS and Supreme Court Judge nominated by Chief

Justice of India(CJI) and Deputy Chairman of RS

In 2009, there was 6 member collegium head – PM for selection

National Commission to review the Working of Constitution (NCRWC) has

submitted its report to Government.

It stated CEC and EC to be appointed by Panel consists of PM, leader of

opposition in Lok Sabha, Speaker and Deputy Chairman of RS and leader of

opposition in RS and EC and CEC should be removed as SC Judge.

SC has suggested Parliament to make a law for appointment but Parliament

did not.

Why independent EC is needed?

EC is important constitutional body

It plays instrumental role in conducting elections in courts.

To ensure transparency and credibility the process of selection of members

of EC should be fair, credible and transparent.

President is advised by executive body, this will create manipulation,

favoritism in selection process it will be ruling power interest which is

violative of Constitution

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Recently law commission has suggested that appointment will be made by

President after consultation with panel consisting of PM, leader of

Opposition and CJI.

MEDIA AND ITS SOCIAL RESPONSIBILITY

Ethics and Social responsibility are essential in growing globalization

Media is 4th

estate of democracy and it is controlled by private sector and

market forces

They effect the social change

They are mirror of the society

Karl Marx said nature is hostile to man and talked about man-nature

conflict(class struggle)

Today market is hostile and has more challenges

Running a TV channel or Newspapers is costly affair. It requires capital and

TRP rating to survive and runned by corporate houses became more profit

motive.

Previously, before Independence media was runned by political activists to

express ideologies

So sometimes media seems to have vested interest in crony capitalism and

nepotistic democracy media became like strong pressure group.

A NEW SCORE IN WASTE MANAGEMENT

Scientists from CSIR-NIIST have been able to turn waste into wealth

They produced ethanol from Cotton-Stalks

India produces 2 million tonnes of Cotton Stalk waste.

How they are used?

They stalks were first treated with acid, alkali and different enzymes to

breakdown polymers of stalk.

The acid removes hemi cellulose , it is a polymer of cell wall, alkali extracts

lignin, it is binding machine matrix in cellular.

This treatment expose cellulose and cellulose is further treated using

enzymes to convert into glucose.

Fermentation

To convert glucose into ethanol, fermentation is done with Yeast.

The Yeast – Saccharomyces cerevinae RRP-03N extracted from rotting wild

fruit from Kerala is used.

After this process, Bio-Ethanol (>99% purity) is produced.

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Uses of Bio-Ethanol

It is a renewable resource

It is more pure than other alcohol

This can be used as liquor for consuming.

It reduces pollution as it do not release CO2 emission

It reduces use of fossil fuels

It can be produced from waste , which is abundant.

It can also be produced from corn, sugarcane waste etc.,

Disadvantages

It is expensive

Ethanol, as biofuel is inefficient when compared to gasoline

It increase methane gases, harmful to Ozone layer.

Storage capacity should be available

Government initiatives

National Policy on Bio-fuels 2015 introduced by government to encourage

renewable energy resources as alternate fuels to supplement transport

fuels.

Way forward

The government should take necessary measures to prevent farmers

diverting their crops from food crops to cash crops for ethanol.

Better storage facilities should be provided.

INDIA, QATAR DISCUSS CITIZENS WELFARE

Context

Qatar assures safety of Indian citizens there.

Background

1) 6 lakh Indian nationals are working in Qatar

2) In June, Saudi Arabia, Egypt, UAE, Bahrain had cut diplomatic ties and

closed all connectivity links with Qatar(believing that Qatar is supporting

terrorism)

India and Qatar

India is planning to invest in Hydrocarbon projects in Qatar

India asked their region countries to resolve the crisis(isolating Qatar)

Joint Action against money laundering and terrorist financing

Enhancing cooperation in Defence and Security

In yesterday s meeting cooperation in energy, trade and investment were

discussed.

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Indian Citizens in Qatar

There are about 6 lakh Indians working in Qatar

In 2015, an agreement is signed, in which Citizens of India on Qatar who are

convicted for crime can be sent to their home country to spend the

remaining prison period.

Participation of Indian companies in Qatar s Infrastructure development

including in FIFA 2022 world cup related infrastructure projects.

Historical Relations

Diplomatic ties between India and Qatar are established in 1973

Diplomatic ties

In 2016, PM Narendra Modi s visit to Qatar made economic ties, particularly

in Hydrocarbon sector

Military Relations

In 2008, an agreement was signed on maritime defence. Mutual exercise of

defence training and mutual visits.

In the same agreement, exchanging the information in order to suppress

threats raised by extremists/terrorists.

Keywords

Money Laundering: Money obtained by drug trafficking, terrorist funding,

illegal money

Hydrocarbon: Deposits under earth s surface such as Oil and Natural gas

MPs FRET OVER TRADE DEFICIT WITH ASEAN

Context

Parliamentary Standing Committee(PSC) on Commerce questioned

government for suggesting that country s increasing trade deficit with

ASEAN(Association of South East Asian Nations), 1967 – Nations is due to

imports of essential commodities (electronics, telecom instruments etc.,)

ASEAN – 10 Nation – Bloc (Indonesia, Singapore, Philippines, Brunei,

Thailand, Myanmar, Cambodia, Lao PDR, Vietnam) – consists of MPs

appointed by Vice President or Speaker of Lok Sabha or both and its

functions are to scrutinize and control, to enquire, day to day business of

house.

Why trade deficit with ASEAN members?

1) India suffered a huge trade deficit in respect of 5 ASEAN members –

Malaysia, Indonesia, Thailand, Brunei and Lao PDR over 2015-16 and 2016-

17, especially with Indonesia.

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2) Under the existing trade agreement, Indonesia committed on tariff

elimination on 50.1% of its items which is least in comparison to other

ASEAN member states, resulted in biggest trade deficit to India among all

members

3) Among the other top 10 commodities imported from ASEAN, consumer

electronics grew high in 2016-17(18.33%), electronic components (11.72%)

and telecom instruments (9.17%)

How to decrease the trade deficit?

1) Better market access

2) Quality norms

3) Reduce tariffs

Excluding essential commodities imports from ASEAN like Coal, Petroleum

and edible oils, India will have a better or positive balance of trade position

Concerns

1) Absence of Quality norms

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Exports of agricultural products from India faced high import tariffs leading

to drop in trade

So Indian food processing sector concern about absence of quality norms

for import of cheap processed food products from ASEAN

2) Non-tariff barriers

Imposition of safeguards, non-tariff barriers by ASEAN on exports of India s

textiles and Pharmaceuticals

What need to be done to improve trade balance?

1) Better market access

India must improve market access for goods like leather goods and

pharmaceuticals

2) Quality norms

Quality norms on products to be imported from ASEAN as well as other

regions of world.

3) Reduction in tariffs

Reduction of tariffs in products like steel

4) Improve India s access to service trade in ASEAN, and increasing foot print

of Indian banks and financial institutions in the region.

SAFETY MEASURES in INDIAN RAILWAYS(AIR)

Dwaraka Express met with an accident and many people lost lives as

unapproved local works were going on tracks and driver could not see red

flags and could not stop train.

How do you feel this accident?

There are instructions not given by the local staff and shortcuts are

practiced.

The enquiry should go standard, maintenance, practice was going on or

negligence was practiced

Driver has to apply emergency brakes gradually so this might of this do not

happen.

Indian Railways

How can a system fail? Station manager was not aware of maintenance

work?

System is certainly under pressure

Safety has to be ensured

Train has to be delayed.

Investments on Indian railways was delayed.

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Government has to take responsibility for management failure.

We did not invest in tracks but announced new trains.

Saturated tracks are there

So should we rationalize trains?

The present government is investing in new tracks rationalizing or reducing

trains is not way out trains have to be slowed down speed and time or

make investment.

We shouldn t suffer citizens for inconvenience.

Government setup Kakore committee, government gave 20,000 crore

rupees every year for railways.

Do we need manual or technology for railways?

Basic operational staff in short term has to be there.

Technology will work in the long run results.

Both has to be used till technology available, manual should be provided.

The last report Vivek Debroy recommended reforming railway board.

Why we have so many boards?

Today time of technology, the number of services can be commercial

working and accounting.

All technical services can be merged.

Financial Infusion will reduce accidents?

Yes, we can do with proper technology whether Budget is reaching properly

or not, it should not be delayed.

SURGE PRICING

Context

The Aam Aadmi Party government is preparing to come down heavily

against surge pricing by cab aggregations.

What is Surge Pricing

Demand Pricing or Surge Pricing or demand pricing or time based pricing is

a pricing strategy in which business set flexible prices for products or

service based on current market demands.

Types of Pricing:

a) Premium Pricing

Involves establishing a price higher than your competitors to achieve a

premium positioning.

Ex: Audi, Mercedes

b) Penetrative pricing

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Capturing market share by entering the market with a low price as

compared to the competition.

Ex: Jio

c) Economy pricing

It involves a low cost approach in which prices are kept low to attract a

specific segment of the market that is highly price sensitive. Ex: D-Mart

d) Skimming Price

Used by companies that have a significant competitive advantage and

which can gain maximum advantage before other competitors offer similar

products or substitutes

e) Psychological Pricing

It is a type of pricing which can be translated into a small incentive that can

make a huge impact psychologically on customers. Ex: 999, 199

f) Neutral Strategy

It focusses on keeping the price at the same level for all four periods of the

product life cycle.

g) Captive Product Pricing

Focusses on captive products accompanying the core products. Ex: Ink for a

printer

h) Optional Product Pricing

Mainly observed in airline companies. Ex: Offering optional features along

with the seats like extra seat space. Etc.,

i) Bundling Pricing

Mainly used to get rid of excess stocks when two different products are

combined together and offered as a deal.

j) Promotional Pricing

Similar to Bundling Pricing but Bundling is of products alone to make the

customer to use the bundled product for the first time.

k) Geographical Pricing

It involves variations of prices depending on the location where the product

and service is being sold.

l) Demand Pricing

Businesses set flexible prices for products or services based on current

market demand. Ex: Air fares, Cabs

Factors affecting Pricing

a) Competitors

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Companies often match their competitor s price to establish and maintain

loyal customers.

b) Customers

Companies must determine how price sensitive customers are

They have to analyse how much buyers are willing to pay for the product.

c) Price Elasticity

People sensitivity to price changes.

d) The Economy and Government Laws and Regulations

Factors is an economic environment include interest rates and

unemployment levels.

In International markets, currency exchange rates also affects pricing.

Pricing decisions are also affected by federal and state regulations.

e) Product Costs

The costs of the product – its input – including the amount spent on

product development, testing and packaging.

f) Pricing objectives

- Profit Maximization

In the short run, a firm can earn more profit by charging high price.

However, during long run, a firm reduces price per unit to earn high

profits through increased sales.

- Obtaining Market share leadership

For an increasing market share, a firm reduces price per unit.

- Surviving in a competitive market

If a firm is not able to survive in the competitive market, it may resort to

free offer, discount or try to liquidate its stock even at best obtainable

price

- Attaining Product Quality Leadership

Firm charges higher prices to cover high quality and high cost

Is Surge Pricing Good or Exploitation?

It is exploitation

1) No limit to multiplier. Ex: 1.5, 7 times

2) Fake shortage:

Possibility of creating a fake shortage of taxis to raise the prices

3) Not the definition of service:

Service industry should be based on first come first serve . There

should be balance between increase in pricing and first come first serve

4) Doubtful customers

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Sometimes prices go down immediately after booking a cab which

creates doubt in minds of customers that they may be created.

5) Not clear

No clear formula for deciding the multiplier.

It is good

1) Encouraging Service providers

Surge pricing will encourage cab drivers and taxis to operate during odd

times and fulfill the needs of customers.

2) Boost to Economy

This helps the nation s economy as the driver earns more

3) Just an extension of already existing

The concept is old as informally rickshaws and autos used to charge

more during night time.

4) Better service

Waiting times has reduced due to surge pricing.

5) Increase in Base fare

If Surge Pricing is banned – taxis would find it difficult to have low fares

in the long run and result in increase of Base fare/ normal fare. It will

lead to more expenditure for all the customers.

Conclusion

Private cabs and taxis are very important in solving transportation issues for

customers. But Surge pricing is creating dissatisfaction and driving

customers away from services. Therefore, it should be properly marketed

and regulated.

27 august 2017 current affairs concepts - · pdf fileindonesia, singapore, philippines,...

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