Price controls - continued

Very strict price control systems can give rise to higher prices at the time of introduction of a new product and the weakening of potential price reductions on expiry of a product s patent (the case for 88 per cent of products in the USA). These observations support the idea that it does not appear to be at all efficient to continue with the system of product-by-product price intervention currently in force in Spain. A regulation system that gives the company flexibility of pricing and excludes products that are subject to competition would be far more recommendable.1... 

Crude oil prices have been pushed by healthy demand led by China, which has outstripped new supply. Political concerns about the stability of the Middle East have combined with this tight supply-demand balance to enable the OPEC cartel to keep control of world oil pricing at a higher level than forecasted as recently as 2002. While a full examination of crude market prospects is beyond the scope of this chapter, the long-term outlook is for OPEC to continue to hold crude oil prices above USD 30/bbl due to the revenue needs of major OPEC member countries. At the same time, the expectation is for oil prices to continue to exhibit considerable volatility around that price. 

The upside of this is that companies whose share-price performance continually outshines their rivals are able to use their own equity to fund their acquisitions, increasing their market power by getting competitors under their control. 

To help control the price of drugs, the government of India instituted the Drug (price control) Order of 1970. The Bureau of Industrial Cost and Prices is continuing its work on the matter and has submitted further recommendations to the government. The position of the pharmaceutical industry is difficult, since it has to consider both fixed prices and growing costs. This will require strict control on spending and also steps to see that productivity increases. 

Until 1977, one can state that supply and demand dictated the price of tungsten. However, from then on the price control mechanism was no longer effective. Although annual tungsten consumption within the period from 1977 to 1989 increased fiirflier from <40,0001 W to 52,0001 W, the price fell continuously. Several circumstances were responsible for the new situation. 

Phosphate ester fluids are the most fire resistant of moderately priced lubricants, are generally excellent lubricants, and are thermally and oxidatively stable up to 135°C (38). Fire-resistant iadustrial hydrauHc fluids represent the largest volume commercial use. AppHcations are made ia air compressors and continue to grow for aircraft use (tributyl and/or an alkyl diaryl ester) and ia hydrauHc control of steam turbiaes ia power generation (ISO 46 esters). 

Development of automated batch process control systems has lagged behind that of continuous process control. Flexible factory scale commercial systems have only begun to appear in the last five years (1-4). Increases in the performance/price ratio of small computers are now making automation of laboratory scale batch processes more practical. 

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