Methods of pricing policy of the state and enterprise (firm)
Government pricing policyThe fundamentals of pricing policy under the US Constitution are the responsibility of the state, and it determines its strategic directions through legislative and legal regulations, including presidential decrees and US government decrees.
Price policy - this is the practical actions of the federal government bodies, executive authorities of the United States and local governments aimed at establishing, forming and regulating prices in the national economy, services and monitoring compliance with state discipline prices. Pricing policy is an important component of the economic policy of the state, which is carried out by analyzing the practice of pricing (free, regulated and established by the state). At the same time, the state price policy promotes the development of market relations and competition, promotes the improvement of the pricing mechanism on unified principles and rules, the free movement of goods and services, the slowing of inflation, the elimination of negative economic and social processes, and also limits the negative consequences of monopolistic activity of individual enterprises (firms, companies, concerns).
Public authorities develop general provisions, recommendations, directions, principles, methods and standards for the establishment and regulation of prices (tariffs), allowances, mark-ups.
The main objectives of state price regulation in socially-oriented national economy are:
• achieving a quality management level of the country's economy, in which all macroeconomic indicators calculated on the basis of prices are predictably predicted in advance; limiting inflationary price increases as a result of a shortage of goods, a sharp rise in price of raw materials, electricity and fuel, monopoly producers; creation of conditions for normal competition that promotes the introduction of scientific and technological progress;
• Definition, formation and implementation of a single state price policy aimed at further development of market relations, increasing the efficiency of social production, solving social problems of the population and obtaining concrete results in this area, in particular, ensuring the subsistence minimum; control over observance of price legislation and state discipline of prices;
• Observance of the interests of society as a whole and, first of all, of socially unprotected layers of the population; harmonization in the price of goods (services) of the interests of commodity producers, each individual citizen and the whole society.Harmonize interests means to ensure the progress of the material well-being of a person, of all members of society, to solve socially important tasks of the country by improving the material and production potential, introducing the latest achievements in science and technology, the most expedient formation and setting up a pricing system for goods (work, services).
The most important directions of the state price policy are determined along with the legislative and normative legal acts by decrees of the President of the USA and the decisions of the US Government.
Pursuant to Presidential Decree No. 221 of February 28, 1995, "On measures to streamline state regulation of prices (tariffs)". (as amended on April 8, 2003), which recognizes the need for further liberalization of prices (tariffs) and the implementation of their state regulation on the products of natural monopolies, US Government Decree No. 239 of March 7, 1995, "On measures to streamline the state regulation of prices (tariffs) (as amended on April 23, 2008) approved lists of products for production and technical purposes, consumer goods and services for which government regulation of prices (tariffs) in the domestic United States market is carried out by the US Government, federal government bodies and executive authorities of the subjects USA, and also the List of services of transport, supply-marketing and trade organizations, according to which the bodies of executive authority of the United States subjects are given the right to introduce state regulation tariffs and surcharges. This primarily relates to prices and tariffs for strategic raw materials (gas, oil), electricity and heat, fuel sold to the population, rough diamonds and precious stones, defense products, transportation (transportation of passengers, luggage and goods), communications, utilities, medicines, medical products, etc.
State regulation of prices (tariffs) of products of natural monopolies is enshrined in Federal Law No. 147-FZ of August 17, 1995 "On Natural Monopolies" (in the edition of December 25, 2008). There are also normative documents on tariffs for electricity and heat, which are regulated by regional energy commissions. The Methodological Recommendations on the Formation and Application of Free Prices and Tariffs for Products, Services and Services introduced by the US Department of Economics (currently the Ministry of Economic Development of the United States) provide for the procedure for the formation and application of free prices (tariffs) for production of industrial and technical goods, people's consumption and services, except for those types according to which current legislation regulates prices and tariffs.
It should be specially noted that the liberalization of prices, carried out in our country (since January 2, 1992), ie, the transition to free pricing without an important tool for managing the economy - their state regulation, fully failed to produce positive results, primarily because of the political instability of the society, the budget deficit, the fall in production, the severance of economic and economic ties, the imperfection of the taxation system, unpreparedness enterprises and their managers, specialists to work in market conditions, lack of competition. The transition to market relations was implemented without a comprehensive science-based program covering all market relations (normalization and regulation of the consumer market, prevention of a decline in production, support for entrepreneurship, creating conditions for competition, antimonopoly policy, creating a labor market, social guarantees for the population, state regulation of pricing ).
Carrying out price liberalization with a large deviation of demand from supply led to negative consequences, i.e. demand and supply were not equalized by increasing the production of goods (services), but by increasing prices. As a result, consumer price indices, which in general affected the sharp decline in the population's living standards.
In order to improve the national economy, the state should regulate not only the development of the economy, but above all the prices (tariffs) of strategic raw materials, gas, oil products, energy resources, transport, housing and communal services, and essential food products. Priyatom it is necessary to constantly and rigidly regulate prices (tariffs) of products of natural monopolies and monopoly enterprises. It is necessary to introduce guaranteed purchase prices of agricultural products purchased by the state to replenish state resources and reserves.
State price policy is usually implemented on the basis of a combination of two main forms:
1) administrative (direct) regulation of prices (tariffs);
2) economic (indirect) regulation of prices (tariffs).The degree of state influence and the ratio of these forms depend on the level of the country's economic development, national traditions, climatic factors, political conditions, availability of raw materials, introduction of scientific and technological progress, material well-being of the population, the role of the state in the world division and labor cooperation and other
The administrative regulation of pricing involves the direct establishment or change in the level of prices (tariffs). This is achieved through the adoption of legislative and regulatory acts.
With administrative regulation, we can distinguish the following degrees of state price caps:
• the state itself sets prices (fixed or regulated);
• The state (authorized bodies) establishes rules for enterprises (firms), according to which the latter independently set prices regulated by the state;
• The state establishes the rules of the "market game", introducing a number of bans on unfair competition and monopolization of the market (free, contractual prices).
The state can fix prices in the following ways:
• the introduction of state list prices;
• freezing free market prices;
• fixing prices of monopoly enterprises and enterprises occupying a dominant position in the market.
As world experience shows, in almost all countries, governments to some extent intervene in the pricing process, thereby limiting market equilibrium and, to some extent, eliminating monopoly by introducing antimonopoly legislation.
Price regulation should be aimed at establishing their compliance with the value of production, cost (cost), the formation of the necessary amount of savings, reducing or eliminating subsidy. Price regulation is an instrument of the relevant price policy associated with the definition of rational intra- and inter-industry price relations.
At the same time, reasonable price ratios should be supported both for the product of the same name and for interchangeable goods.
Direct price regulation is effective when the government has the ability to exert influence not only on prices, but also on all components of prime cost (material costs, labor costs, social contributions, depreciation of fixed assets, other costs), and value of profit in the price.
Typically, the state sets the prices of goods that form the basis of the price system (gas, oil, coal, electricity, urban transport, housing and communal services, railway tariffs, essential products). The economy is very sensitive to the fluctuation of such prices, therefore, fixing them at a certain level, the state has an effect on the entire price system.
Direct price regulation is also used when placing government orders at enterprises of the military-industrial complex, implementing state (regional) programs related to energy, heating, national security, health, environment, major civil or industrial construction.
The state can also regulate market prices with a certain degree of rigidity in the following ways:
• the establishment of a price ceiling for individual goods, the minimum or maximum price level of certain product groups;
• regulation of the main parameters of the price (profitability level, profit margins, allowances, margins, discounts, indirect taxes, duties, fees, etc.);
• Definition of the limit of a one-time increase in the prices of specific goods.
In the system of free market prices, the role of the state is reduced only to the establishment of the "rules of the game" on the market and the adoption of measures that must protect market participants from unfair competition. To this end, a series of prohibitions:
• for horizontal price fixing - a ban on the agreement of two (or more) competing enterprises on maintaining prices at a certain level;
• the vertical fixation of prices - a ban on producers to impose their prices on suppliers and trade;
• for dumping ("junk") prices, which are a strategy of selling goods below cost to eliminate competitors or sell goods in foreign markets at lower prices than in the domestic market;
• price discrimination, which is a market price policy, when the seller for the same product sets different prices for different buyers; usually it is practiced by monopolists.
These bans apply in many countries with developed market economies.
Economic (indirect) price regulation includes a system of measures that affect the changing market conditions, establishing the optimal balance between supply and demand, increasing competition, creating a certain financial , the monetary and tax environment, the stimulation of production of socially significant products (services), the promotion of activities aimed at increasing the efficiency of social production, and other factors of macroeconomic equilibrium named above that affect the level and di Amica prices.
This system of measures involves a number of means and methods for reforming the economy and improving the management mechanism:
- use, development and improvement of reasonable and differentiated financial, credit, price, tax, budget, currency, customs policies;
- improvement of antimonopoly legislation;
- stimulating small business;
- a reduction in the budget deficit;
- denationalization and reasonable privatization;
- control and regulation of household incomes and other methods of macroeconomic balance;
- further improvement of legislation related to the protection of consumer rights.
Thus, through a variety of measures, methods, methods, rules, regulations, recommendations, legislative and regulatory acts, the state interferes with the economic life of enterprises (firms, companies, associations, concerns, associations) and accordingly affects pricing processes for the purposes stabilization and development of the national economy, which is generally carried out through financial, credit, budget, currency, price, tax, customs, structural, investment and legislative policies.
In the market economy, state control over prices and tariffs is carried out by various central and local (special) public authorities, depending on the types of products and services, the degree of their liberalization, accounting for state standards in price levels (profitability, cost, trade mark-ups, margins, value added tax, excises, etc.). The state control over prices is reduced to determining the compliance of selling prices (wholesale and retail) with consignment notes and other documents accompanying the movement of goods, as well as the legality of including a certain level of premiums for intermediary services. Violation of the procedure for the application of prices and tariffs is a failure by a business entity to establish the prices or conditions that limit them, failure to submit documents and information necessary for the audit at the request of the price control body .
The main violations of the state price discipline are the overestimation of the price ceiling, the marginal coefficients of their change, the marginal profitability levels; overstating or understating government regulated (fixed) prices and tariffs; overstatement or understatement of prices of products supplied under interstate agreements; overstatement of wholesale (holiday) prices registered when declaring in pricing authorities; overstatement of established surcharges and targeting to prices (tariffs), accrual of unintended surcharges and mark-ups, failure to provide the buyer with established discounts or providing them in a reduced amount; the use of regulated prices, margins, tariffs by public catering enterprises, municipal services, whose service level does not correspond to the characteristics provided for the establishment of these prices and tariffs; violation by enterprises-monopolists of the procedure for declaring free prices and tariffs; overstatement of the prices of products (goods), qualitative consumer properties of which, due to structural or technological deficiencies, do not correspond to the level adopted at the level of agreement; inclusion in the cost of actually not performed works or performed in an incomplete volume, as well as the use of prices agreed to the complete product, with the actual supply of incomplete goods; non-transfer to the budget of amounts received due to exceeding the marginal profitability level, and untimely reduction of prices (tariffs, extra charges) of products (goods, services) by monopoly enterprises (on products included in the Register of Enterprises-Monopolists).
The purpose of any control is to identify, prevent, suppress, prevent, eliminate violations of the state discipline of prices.
Control over the observance of the state discipline of prices applies three types: state, departmental, public.
State control for the observance of prices are carried out by the pricing authorities of the Ministry of Economic Development of the United States, committees (management) of the price policy of the ministries of economic development of the republics, administrations of the regions, regions, cities of Moscow and St. -Petersburg, financial and tax services, state inspectorates, city and district administrations, antimonopoly committees and their consumer protection services in accordance with the antitrust laws and the US law of February 7, 1992 No. 2300-1 "On protection those consumer rights (in the edition of July 23, 2008).
Departmental control for the observance of prices are carried out by associations, associations, firms in their subordinate enterprises, units in accordance with the current regulations and bylaws in order to assist in the formation, establishment and application of prices .
Public control for observance of the state discipline of prices is carried out by public commissions headed by trade unions, consumers and unions for the protection of consumers' rights.
If the state discipline of prices is violated, the entire amount of additional revenue received due to their violation is subject to transfer to the budget or may be returned to buyers.
If the funds are not transferred voluntarily to the budget or are not returned to the buyers, the pricing authorities decide to enforce the amount of busting and the fine in the same amount in the budget revenue. The implementation of these sanctions is carried out by the tax authorities on the basis of a decision of the pricing authority or the arbitration court. In accordance with the law, an administrative fine is imposed for violating the state discipline of prices for guilty persons.
The application of economic sanctions to enterprises (firms) does not relieve personal responsibility of officials guilty of violating the state discipline of prices.
In foreign countries with developed market economies, price control is actively used, which consists mainly in observing the dynamics of prices and observance of price legislation. In violation of legislative and regulatory acts that regulate pricing and competition, in many countries severe economic sanctions and significant fines are established.
Therefore, in no country with a developed market economy there is complete freedom in pricing.
In our country under the price control remain whole branches of the national economy, having a special social significance. First of all, the state controls and regulates the prices of products of the fuel and energy complex, medicines and medical products, servicing of the population by utilities, railway, motor transport, aviation and postal and telegraph tariffs, and the prices of basic food products by rigidly regulating purchase prices for agricultural products. The state system for regulating the prices of agricultural products should be aimed at protecting the interests of both consumers and producers.Thus, it follows from the above that the problems of the formation, establishment and state regulation of prices (tariffs) are expedient to be solved in a complex way, combining legislative and normative acts, methods, forms, rules and pricing principles with economic categories such as improving the financial- credit mechanism, ordering of taxes (fees, payments and deductions), cost, profit, profitability, labor compensation.
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