8. Some economists argue that cooperation between franchises should not be considered in violation of antitrust laws. They use the argument that such cooperation can actually benefit consumers and promote healthy competition. When franchises cooperate, they can share resources, knowledge, and expertise, leading to improved products and services. For example, if two fast food franchises collaborate, they can develop new menu items or technology together, which can enhance the overall dining experience for consumers. This cooperation can also result in cost savings, which can be passed on to customers in the form of lower prices. Additionally, by joining forces, franchises can better compete against larger corporations, which can help level the playing field in the market. Therefore, these economists believe that considering cooperation between franchises as a violation of antitrust laws may hinder innovation, restrict consumer choice, and stifle healthy competition.
9. As the Economic Advisor to the Cabinet, there are several economic concepts that need to be analyzed and considered when assessing the economic premise of Jamaica hosting the 2024 Commonwealth Games. Some of these concepts include:
- Cost-benefit analysis: This involves evaluating the expected costs of hosting the event, such as infrastructure development, security, transportation, and marketing, against the potential economic benefits, such as increased tourism, job creation, and infrastructure improvements.
- Economic impact assessment: This entails studying the potential short-term and long-term effects of hosting the event on the local economy, including the direct and indirect economic impacts on different sectors, the overall GDP growth, and the potential multiplier effects.
- Financial feasibility: This involves assessing the financial viability of the project by examining the projected revenue streams, funding sources, and the ability of the government to manage and repay any debts incurred.
- Risk analysis: This requires evaluating the potential risks and uncertainties associated with hosting the event, such as cost overruns, unforeseen challenges, and the possibility of not achieving the promised earnings.
During the meeting with the brokers, it is essential to ask relevant questions to gather the necessary information for a thorough assessment. Some of the questions that should be asked include:
- What are the specific costs associated with hosting the event, and how will they be financed?
- What are the expected sources of revenue, and how reliable are they?
- What is the track record of previous host cities in terms of economic benefits and costs?
- How will the event impact the local infrastructure, and what are the long-term plans for utilizing these improvements?
- What measures will be put in place to mitigate potential risks and ensure the financial sustainability of the project?
By considering these economic concepts and asking these questions, you can provide a comprehensive assessment of the economic premise of hosting the Commonwealth Games in Jamaica.