Maritime Economics

Order Description

Explain why maritime Economics are different from normal Economics?
Intervention, Monopolies, Externalities, Indivisibility, Derived Demand, Supply and Demand (Shipping cycle, factors that effect demand and supply) also social issues.

Intervention and monopolies
*Intervention
-Free Market
-Government subsidy
-State ownership
http://www.ukchamberofshipping.com/information/tonnage-tax/
http://www.maritimeuk.org/wp-content/uploads/2014/08/Maritime-UK-tonnage-tax.pdf

*Monopolies
-Ports: Space monopoly
-Large established Shipping companies

*Externalities
-Pollution
-Market failure and regulation
http://www.imo.org/OurWork/Environment/PollutionPrevention/AirPollution/Pages/Air-Pollution.aspx

*Accidents
Watch the video :
http://www.theguardian.com/world/video/2014/jul/14/costa-concordia-operation-wrecked-cruise-ship-refloated-video
Read the articles and discuss

*Security
How can you predict? How can you price it

*Indivisibilities
-Incapable of undergoing division.
-Read the article ;
Issue indivisibility and territorial claims*, Paul R. Hensel, Sara McLaughlin Mitchell

*Social issues
-Economic influences
-Political turbulence
-Cultural issues

*Derived Demand
-Where is demand driven from?
-What are the most popular commodities to be shipped?
-Supply chain and logistics are popular examples of a push and pull system

*Supply and Demand
Ports and Ships are two very different entities in the same market
*Shipping cycle, factors that effect demand and supply.

INSTRUCTION
REPORT FORMAT

Referencing from News articles, Journals and Books only- ( including web books, journals and news articles)

Stay in the word limit (1200)

Referencing should be Harvard style and coherent

May include a bibliography and can use as much references as you want.

Use sub headings and sections

Use Arial 12 and 14