Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has continued to shrink due to higher liquor taxes, changing the sales trend of alcoholic beverage products.In the same period, however, the market share of so-called craft beers has quadrupled, to about 2 percent of all beers.Four larger domestic breweries account for 98% of beer production, with smaller local breweries producing the rest (domestic market share: 39% asahi, 31% kirin, 16% suntory, 12% Sapporo and 2%).Imported beer accounts for only about 1% of the total beer market.Craft beer is expected to boost inbound visitors to the 2019 rugby World Cup and 2020 Tokyo OlympicsThe Japanese government is concerned about combined market power that may be exercised by The big four beer brewing companies in Japan. Drawing on economic principles, explain one policy the government could consider implementing to increase competition in the Japanese beer market. Briefly discuss why and how the policy you identify could work effectively, using economic principles.
Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has continued to shrink due to higher liquor taxes, changing the sales trend of alcoholic beverage products.In the same period, however, the market share of so-called craft beers has quadrupled, to about 2 percent of all beers.Four larger domestic breweries account for 98% of beer production, with smaller local breweries producing the rest (domestic market share: 39% asahi, 31% kirin, 16% suntory, 12% Sapporo and 2%).Imported beer accounts for only about 1% of the total beer market.Craft beer is expected to boost inbound visitors to the 2019 rugby World Cup and 2020 Tokyo Olympics
The Japanese government is concerned about combined market power that may be exercised by The big four beer brewing companies in Japan. Drawing on economic principles, explain one policy the government could consider implementing to increase competition in the Japanese beer market. Briefly discuss why and how the policy you identify could work effectively, using economic principles.
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