Advantages And Disadvantages Of Price Discrimination In The Caribbean
Price discrimination is when a company sells to different consumers, the same or similar product or service at a different price, even though the production costs are the same.
Examples of price discrimination may include:
• The varying price of airline tickets depending on the season and/or day of the week.
• Carnival fetes where the cost of tickets are reduced for persons purchasing early or “Ladies free before 11”.
• A lower price being charged to customers who purchase a larger quantity of a product
• Loyalty cards for customers who purchase a product or service regularly.
The three (3) types of price discrimination are First Degree, Second Degree and Third Degree.
First degree price discrimination is when the seller determines …show more content…
The more advanced Caribbean societies become technologically, the more dependent people are on it for their everyday existence. If a machine or a computer breaks down, for instance, humans are practically disabled until the problem is solved. With this dependency people become less self-reliant and this puts them at a disadvantage
Advances in communication is also responsible for the flourishing drug network within the Caribbean region and this has affected the economic potential of the Caribbean nations.
Another disadvantage of globalization in the Caribbean has to do with the way in which it affects the Caribbean identity. Because the media is global in its reach, what we are seeing are changes in food, language, language usage, morals and ethics, dress, sexuality and patterns of consumption.
Globalization has also had a negative effect on the Caribbean agricultural sector, particularly the banana industry where employment in agriculture has decreased significantly over the last 2 decades. As an example, employment in the banana industry in the Windward Islands declined by 21,000 workers between 1990 and 1998. Today the number is less than 5,000. With globalization, there is no protection for countries of the region that produce bananas and their traditional markets like Europe have since been inundated by competition from Latin American