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Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2005
Length: 20 pages
Data source: Field research

Abstract

This case investigates the effects of the rice liberalisation in Hong Kong in 2003, after forty-eight years of being regulated. The import restrictions imposed by the government were implemented to avoid price instability against unpredicted fluctuations. The rice was imported by a defined number of importers authorised by the government and the amounts were revised annually. Large stocks were required to be maintained in case of shortages in supply. Both the import quota system and the maintenance of stocks implied a cost that was transferred to consumers. The case provides a study of government intervention in the market that works against its objectives and transfers costs to consumers.
Location:
Other setting(s):
2003

About

Abstract

This case investigates the effects of the rice liberalisation in Hong Kong in 2003, after forty-eight years of being regulated. The import restrictions imposed by the government were implemented to avoid price instability against unpredicted fluctuations. The rice was imported by a defined number of importers authorised by the government and the amounts were revised annually. Large stocks were required to be maintained in case of shortages in supply. Both the import quota system and the maintenance of stocks implied a cost that was transferred to consumers. The case provides a study of government intervention in the market that works against its objectives and transfers costs to consumers.

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Location:
Other setting(s):
2003

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