The brander-krugman model

The brander-krugman model Extended Essay 1 The Brander-Krugman model, also known as the reciprocal dumping model, explains the possibility of international trade in a homogenous good. In doing so, it raises an interesting issue: is this apparently pointless trade socially beneficial? Meanwhile, Corden developed a more realistic customs union (CU) theory compared to orthodox theory by relaxing the assumption of constant marginal costs (MC). While the framework of these two models are similar, their conclusions are very different, the reasons for which are discussed further below. a) Both models are set in a partial equilibrium framework; the prices of all substitutes and complements of the good in question are assumed to be constant, as are the income levels of consumers, allowing for an easier analysis of welfare gains from the formation of the customs union (CU). Within this framework, there is a single producer in each of the CU countries that produces a homogenous good. The other similarity between the two models is that the tariffs set and faced by both countries (Home (H) and Partner (P)) before CU formation are equal .Thus, when the union is created a Common External Tariff (CET) already exists. Corden develops his model in further stages to include made-to-measure tariffs so that the CET has to be set upon CU formation. It is assumed that this will be set lower than the original tariffs that were imposed. The countries forming a CU in Cordens model are small relative to the rest of the world (R), implying that its formation will have no effect on world prices. In the Brander-Krugman model, all three countries (R is represented as one country) are identical in size. Symmetry is assumed between the firms in the Brander-Krugman model therefore the firms in each of the countries face the same constant marginal cost and domestic demand functions, contrary to Corden. Corden relaxes the assumption of constant marginal costs (MC) that is held in orthodox customs union theory, and assumes instead that the firms benefit from internal economies of scale and thus face declining marginal and average cost (AC) curves. Figure 1 shows that the minimum point of the firms AC curves is above the price paid for imports (pm). Hence a tariff is necessary to protect domestic production, which is set at T- pm and prevents R from importing to H and P. The domestic price being equal to the firms AC, they operate at a normal profit. The price received for exports (px) is assumed to be lower than pm as H and P also face tariffs. Therefore, their AC is greater than px and so they cannot export their goods either. Thus, unlike in the Brander-Krugman model, there is no international trade prior to CU formation. The main characteristic of the Brander-Krugman model is that the firms display Cournot behaviour the firms make decisions about their own output levels to maximise their profits assuming that the output levels of the other producers will not change[1]. This is not necessarily the case in Cordens model. b) The existence of internal economies of scale in Corden means that efficiency and welfare gains could be increased if a single firm increases its output and captures both markets following CU formation. This, along with the assumption that the firms face different cost functions, leads to the conclusion that the firm with the higher AC will exit the market and import the good from the firm that can produce it at a lower cost (this essay will assume that the partner firm exits the market). The assumption that the partner firm operated at a normal profit pre-CU indicates that there will be no loss of producer surplus and no welfare loss in P as it exits the market. Conversely, the symmetry between the firms in Cournot means that neither firm in the CU has a cost advantage over the other. Thus, both the home and partner countries benefit from CU formation by increasing trade with each other, resulting in an increase in output for both firms (Appendix, equation (1)). Although H and P have increased their overall output, the quantity they supply in each of their domestic markets decreases (equation 2). Although there is an overall gain in welfare in both models as a result of CU formation, the source of these gains differ. Both the home and partner countries experience a welfare gain from CU formation in Cournot given the symmetry, whereas only the home country benefits in Corden as the partner firm exits the market. In Cournot, the price falls in the markets (equation 3) and thus the welfare gain is largely reflected by an increase in consumer surplus (equation 4) in both the home and partner markets. The countries also lose welfare through a fall in tariff revenue (equation 5) and the firms profits may rise or fall depending on the elasticity of the aggregate demand in the CU (equation 6). However, Hs overall welfare gain is shown to be always positive (equation 7). In Corden, the assumption that the home and partner countries are small compared to the rest of the world implies that the CU firms are not large enough to compete with the outside firm and therefore the CU formation will not affect world prices. This, along with the assumption that the remaining firm within the CU maximises his profit by charging right up to the import-preventing price, which is the world price plus the CET, means that the price will remain unchanged. Thus, the increased welfare is due to an increase in the remaining firms producer surplus (figure 1, a+ß) as the fall in average cost (to J, figure 1) is not passed onto consumers. However, if made-to-measure tariffs are assumed and the CET is lower than both the initial tariffs, a price reduction will be induced in both countries and some of the welfare gain will be passed onto consumers. The symmetry in Cournot and differentiation in Corden also lead to different conclusions with respect to the impact on the rest of the world. In Corden, the CU formation does not affect Rs welfare under the assumption that there was no international trade pre-CU and there is still none post-CU. In Cournot, the fall in Rs output (equation 8) and the price drop in H and P impact negatively on the R firms profits (equation 9). As consumption and imports in R remain unchanged, Rs welfare is reduced. The main assumptions that lead to the different conclusions are those of symmetrical costs in Cournot and differentiation in Corden. This affects how the welfare gains are divided amongst the countries as well as how they are split between the producers and consumers. c) In discussing the appropriateness of the models to the EU situation, the relevance of the assumptions and the predicted results, and how the causes of these results compare with reality need to be considered. There are many studies that analyse how EU integration has affected trade flows in terms of trade creation and trade diversion. Trade creation is defined as intra-EU imports replacing domestic production; trade diversion as EU imports replacing imports from the rest of the world. By 1992, bilateral trade between any two EC countries was 65% higher than if the EC had not existed, supporting both models predictions that trade between the home and partner countries increases.[2] Over the period from 1959/60 to 1977, which includes both stages of integration for the EC and EFTA countries, annual trade creation was estimated at $20-31 billion and trade diversion at $5-8 billion.[3] This affirms the Cournot prediction that the partner firm would increase its imports to the home country at the expense of both domestic production and imports from the rest of the world. A study by the Single Market Review on the impact of the Single Market Programme (SMP) on trade creation and trade diversion gives a detailed insight into the relevance of the Corden and Cournot models to the EU situation.[4] Its data and analysis focuses on industries within the manufacturing sector, particularly the 15 industries that were likely to be particularly sensitive to the SMP.[5] Although there are some industries close to perfect competition with a concentration ratio of 0.00 or 0.01 such as clothing and boiler making most industries within the EU are relatively oligopolistic according to their average concentration ratios. The assumption of perfect information is unlikely to hold true. In many economic theories where this is assumed, it is highly unrealistic, especially with regards to the reactions of a firms competitors to the union formation. While Cournot assumes that firms face a constant MC, a 50% reduction in output from the minimum efficient scale of output led to an increase in AC, and therefore MC, in all the industries analysed, thus indicating the presence of economies of scale. The assumption that all firms display Cournot behaviour does not always hold in the context of the EU. Through a comparison of the changes in the price-cost margins and in the home firms market share in the domestic industry, it is evident that industries reacted in two very different ways. One group, including office machines and pharmaceutical products, experienced large cuts in their price-cost margins and a relatively small change in their market share, while the opposite is the case for the other group. It appears that the first group decided to reduce its prices instead of losing market share, implying that some firms do not compete on output but on price. However, the effect of changes in competitive behaviour by firms on market shares was extremely small for most industries and countries, though it was usually more important in the smaller EU countries.[6] Thus, changes in firms behaviour are relatively insignificant in affecting market shares, compared to other factors. The assumption of symmetrical firms is, again, an unrealistic one. Given that the country sizes within the EU are very different, it is highly likely that firms across the EU faced different market sizes and domestic demand functions before integration, and as a result, they are unlikely to be the same size or have the same cost functions. In terms of the impact of the CU formation on the industries, most of the results predicted in Cournot hold true from 1900-94, the period examined in this SMR report. The price-cost margins in the 15 sensitive industries fell by an average of 3.9%, while they fell by 3.6% in the manufacturing sector as a whole. The extent of this drop in each industry depends on the behaviour of the firms. The impact of the SMP on the respective market shares in the manufacturing sector as a whole is negative for the home industries, and positive for both the EU and the rest of the worlds market shares in the home country. Cournots model correctly predicted that the home firm would sell more while the partner firm would sell less in the home market. However, it predicts that the rest of the worlds share of the home market would fall. The SMR carried out two ex-post simulations; one with no direct external trade effects and one with. All of Cournots predictions regarding changes in the market shares hold true for the former simulation. However, the latter simulation is more accurate in reflecting the actual changes in market shares that were experienced over this integration period. This implies that the Cournot model does not take into account the increasing liberalisation of external trade over this period that also led to a reduction in extra-EU trade costs, either as a result of the CU formation or due to increasing globalisation. In terms of welfare, the changes support Cournots prediction that welfare increased in both H and P. The change in welfare measured as a percentage of GDP was greater than the percentage change in GDP in each of the EU countries analysed. The main goal of creating the single market in the EU was to increase its competitiveness with respect to large economies such as the USA through economies of scale. This implies that Cordens model should offer a more accurate picture of the EU. However, certain assumptions do not reflect the EUs characteristics. The assumption that the CU-forming countries are small may hold true for some of the EU countries; however, the implication of this that the customs union will be unable to affect world prices may not hold. Given the size of the EU, it is large enough to compete with the large economies such as the USA and Japan. Cordens predictions regarding changes in price and market shares are not appropriate to the EU situation, due to the strong assumptions that there was no international trade prior to the formation and thus no trade with the rest of the world after. Also, with the partner firm exiting the market, it is assumed that there is no increase in competition following CU formation, thus no change in the prices. However, there is evidence supporting the main conclusion of this model that the welfare gain is a result of restructuring, which leads to increasingly concentrated industries as firms can benefit from economies of scale as the size of the market that they have access to increases. Between 1987 and 1993, the four-firm concentration ratio increased by 2.3% across 71 industries in the EU.[7] This was partly due to increased restructuring; between 1987 and 1990, the percentage of MAs involving countries from two different member states jumped from 9.6% to 21.5% in anticipation of the Single Market. This replaced MAs within country borders which fell from 71.6% to 60.7% over the same period.[8] While it is true that EU industry concentration has increased, this is cannot be attributed solely to an expansion in the market size. Many industries already operated internationally in the 1980s and hence, a market size expansion would not have had as big an impact on the concentration level. The single market also led to a reduction in non-tariff barriers (especially barriers to entry) between EU member states, through public procurement liberalisation, increased ease of cross-border knowledge transfer and the free movement of capital. Cordens comparative static model fails to take into account the dynamic effects of EU integration. The aim of the SMP was much more ambitious than a mere elimination of the tariff barriers and thus both theories, which focus on the effects of a CU, are too simplistic to be wholly appropriate. Certain aspects of both models are comparable to the EU situation. However, Cordens model seems to be more suitable; while Cournots results regarding changes in the prices and respective market share were more accurate, Cordens underlying characteristics are much more appropriate to the current EU situation. 1 Friedman, James (1983), Oligopoly Theory, Cambridge University Press Frankel (1997) (Ali El-Agraa P175) Kreinin (1979b) (Ali El-Agraa P175 European Commission/CEPR (1997) Trade Creation and Trade Diversion, Subseries IV/ volume 3 of The Single Market Review Buigues, Ilzkovitz and Lebrun (1990) EC/CEPR, 1997, Trade creation and trade diversion Subseries V, Volume 4, Economies of Scale AMDATA in European Economy (1999)

Understanding Computer Networks Essay -- Research Papers

Understanding Computer Networks Each day, students and faculty at State University sit down in front of a PC or UNIX workstation and eagerly check their electronic mail, surf the World Wide Web, or run applications such as word processors and analysis packages. To most users, the magical wire which carries all of this information is nothing more than an electrical construct; two pair of wires twisted together and crimped at the end with phone connectors. Our world today is built on networking in every field from cable television to telephone systems, yet many engineers, old and young alike, have no idea what constructs enable them to communicate seamlessly across the globe. Computer technology is constantly evolving. Fifteen years ago, computers were connected via simple serial interfaces communicating at 9600 bits per second. Today, workstations pump out data at rates in excess of 100,000,000 bits per second, and the road to improvement seems endless. The networking industry is filled with jargon which make it difficult to understand. While the concept of networking is not difficult to grasp, it is often difficult to fully explain. This text will enable the reader to understand the basic hardware that allows a computer network to function. Computer networks consist of five major components. Two of these components are probably familiar to you: the workstation and the network server. When you sit down at a networked computer, the first thing you do is type in your name and a password. This process allows the computer to recognize you, and verify you are who you say you are by means of a password. When the login process is complete, you are connected to a network server; a device that simultaneously manages the disk space and... ...until it finds its final destination. And of course, traffic on the same floor wonÕt be forwarded by the router, since it was already sent to every port on that floor by the switch or repeater. Repeaters, switches, and routers form the basis of computer networks as we know them today. These devices provide connectivity which spans from the desktop to the global internet and back again. The networking industry is growing at an exponential rate, and there are constant challenges to make these devices faster, cheaper, and better. The knowledge presented here is just the tip of a gigantic iceberg with many opportunities for those interested, including opportunities in circuit design, network administration, systems consulting, and more. As networking grows to encompass every aspect of our lives, so will the value of people who know what networking is and how it works. Understanding Computer Networks Essay -- Research Papers Understanding Computer Networks Each day, students and faculty at State University sit down in front of a PC or UNIX workstation and eagerly check their electronic mail, surf the World Wide Web, or run applications such as word processors and analysis packages. To most users, the magical wire which carries all of this information is nothing more than an electrical construct; two pair of wires twisted together and crimped at the end with phone connectors. Our world today is built on networking in every field from cable television to telephone systems, yet many engineers, old and young alike, have no idea what constructs enable them to communicate seamlessly across the globe. Computer technology is constantly evolving. Fifteen years ago, computers were connected via simple serial interfaces communicating at 9600 bits per second. Today, workstations pump out data at rates in excess of 100,000,000 bits per second, and the road to improvement seems endless. The networking industry is filled with jargon which make it difficult to understand. While the concept of networking is not difficult to grasp, it is often difficult to fully explain. This text will enable the reader to understand the basic hardware that allows a computer network to function. Computer networks consist of five major components. Two of these components are probably familiar to you: the workstation and the network server. When you sit down at a networked computer, the first thing you do is type in your name and a password. This process allows the computer to recognize you, and verify you are who you say you are by means of a password. When the login process is complete, you are connected to a network server; a device that simultaneously manages the disk space and... ...until it finds its final destination. And of course, traffic on the same floor wonÕt be forwarded by the router, since it was already sent to every port on that floor by the switch or repeater. Repeaters, switches, and routers form the basis of computer networks as we know them today. These devices provide connectivity which spans from the desktop to the global internet and back again. The networking industry is growing at an exponential rate, and there are constant challenges to make these devices faster, cheaper, and better. The knowledge presented here is just the tip of a gigantic iceberg with many opportunities for those interested, including opportunities in circuit design, network administration, systems consulting, and more. As networking grows to encompass every aspect of our lives, so will the value of people who know what networking is and how it works.

Evolution of Financial Management Essay

The Traditional Phase:This phase has lasted for about four decades. Its finest expression was shown in the scholarly work of Arthur S. Dewing, in his book tilted the Financial Policy of Corporation in 1920s. In this phase the focus of financial management was on four selected aspects. It treats the entire subject of finance from the outsider’s point of view (investment banks, lenders, other) rather than the financial decision maker in the firm. It places much importance of corporation finance and too little on the financing problems of non-corporate enterprises. The sequence of treatment was on certain episodic events like formation, issuance of capital, major expansion, merger, reorganization and liquidation during the life cycle of an enterprise. It laid heavy emphasis on long-term financing, institutions, instruments, procedures used in capital markets and legal aspects of financial events. That is, it lacks emphasis on the problems of working capital management. It was criticized throughout the period of its dominance, but the criticism is based on matters of treatment and emphasis. Traditional phase was only outsiders looking approach, over emphasis on episodic events and lack of importance to day-to-day problems. The Transition Phase: It began in the early 1940’s and continued through the early 1950’s. The nature of financial management in this phase is almost similar to that of the earlier phase, but more emphasis is given to the day-to-day (working capital) problems faced by the finance managers. Capital budgeting techniques were developed in this phase. Much more details of this phase is given in the book titled Essays on Business Finance. The Modem Phase: It began in the mid 1950’s and has shown commendable development with combination of ideas from economic and statistics has led the financial management to be more analytical and quantitative. The main issue of this phase is rational matching of funds to their uses, which leads to the maximization of shareholders’ wealth. This phase witnessed significant developments. The area of advancement was – capital structure. The study says the cost of capital and capital structure is independent in nature. Dividend policy, suggests that there is the effect of dividend policy on the value of the firm. This phase has also seen one of the first applications of linear programming. For estimation of opportunity cost of funds, multiple rates of return-gives way to calculate multiple rates of a project. Investment decision under conditions of uncertainty gives the formula for determination of expected cash inflows and variance of net present value of project and also defined how probabilistic information helps the firm to optimize investment decisions involving risk. Portfolio analysis gives the idea for the allocation of a fixed sum of money among the available investment securities. Capital Asset Pricing Model (CAPM), suggests that some of the risks in investments can be neutralized by holding a diversified portfolio of securities. Arbitrage Pricing Model (APM), argued that the expected return must be related to risk in such a way, that no single investor could create unlimited wealth through arbitrage. CAPM is still widely used in the real world, but APM is slowly gaining momentum. The Agency theory emphasizes the role of financial contracts in creating and controlling agency problems. Option Pricing Theory (OPT), applied Martingale pricing principle to the pricing of real estates. The cash management of models (working capital management) by Baumol Model, Miller and Orglers, Baumol models helps to determine optimum cash conversion size; Miller model reorder points and upper control points and Orglers model helps to determine optimal cash management strategy by adoption of linear programming application. Further new means of raising finance with the introduction of new capital market instruments, such as Pads, Fads, PSBs and Caps, etc. Financial engineering that involves the design, development and the implementation of innovative financial instruments, and formulation of creative optional solutions to problems in finance. Even though, the above mentioned developed areas of finance is remarkable, but understanding the international dimension of corporate finance formed a very small part of it, which is not sufficient in this era of globalization.

Lady Audley essays

Lady Audley essays Phoebe Marks inferiority is complex Phoebe Marks identity is masked by being inferior to both Lady Audley and Luke Marks in the Mary Elizabeth Bradden novel Lady Audleys Secret. This inferiority not only lessens Phoebes femininity but also forces her into a subdivision of gender she is incapable of owning. Why didnt the privileges that existed for Lady Audley exist for Phoebe? Phoebe is afraid of Luke, and terrified of refusing his hand in marriage therefore robbing her of the feminine duty or privilege to marry well. Is it a coincidence that Phoebe is treated better as a maid at Audley Court than Luke Marks wife? Throughout the novel, Phoebe is referred to as a maid or servant of Lady Audley and the wife of Luke Marks or the inn keepers wife (311). She is never characterized on her own circumstance, but on the circumstance of others. In other words, she is never able to do what she wants as a person or as a woman, instead she has to take orders from people who do not see her as the effeminate woman she could be. For example, she is forced into marrying Luke because she is afraid that if she does not marry him, he will be very violent toward her. On page 107, Phoebe explains Luke as a child ...he was always violent and revengeful. I saw him once take up that very knife in a quarrel with his mother. I tell you, my lady, I must marry him. Since she is afraid of Luke, she is robbed of the feminine privilege to marry for love (or Lady Audleys this case-money). Again on page 107, Phoebe declares that she does not love Luke: I dont think I can love him. We have been together from children, and I promised, when I was little better than fifteen, that Id be his wife. I darent break that promise now...I darent refuse to marry him. Ive often watched and watched him, as he has sat slicing away at a hedge-stake with his great...

The Long History of the Rain Gauge

The Long History of the Rain Gauge One source has is that the son of King Sejong the Great, who reigned the Choson Dynasty from 1418 to 145, invented the first rain gauge. King Sejong sought ways to improve agricultural technology to provide his subjects with adequate food and clothing. In improving agricultural technology, Sejong contributed to the sciences of astronomy and meteorology (weather). He invented a calendar for the Korean people and ordered the development of accurate clocks. Droughts plagued the kingdom and King Sejong directed every village to measure the amount of rainfall. His son, the crown prince, later called King Munjong, invented a rain gauge while measuring rainfall at the palace. Munjong decided that instead of digging into the earth to check rain levels, it would be better to use a standardized container. King Sejong sent a rain gauge to every village, and they were used as an official tool to measure the farmers potential harvest. Sejong also used these measurements to determine what the farmers land taxes should be. The rain gauge was invented in the fourth month of 1441. The invention of the rain gauge in Korea came two hundred years before inventor Christopher Wren created a rain gauge (tipping bucket rain gauge circa 1662) in Europe. Rainmakers Born in Fort Scott, Kansas, in 1875, Hatfield claimed to have been a student of meteorology for 7 years, during which time he discovered that by sending a secret combination of chemicals into the air clouds could be produced in large enough quantities that rain was sure to follow. On March 15, 1950, New York City hired Dr. Wallace E Howell as the citys official rainmaker.

President Nelson Mandela was seen by people from various political, Research Paper

President Nelson Mandela was seen by people from various political, economic, social, religious, cultural, ethnic and racial bac - Research Paper Example The legislation led to the fleeing of Africans from the rural areas where they owned farms to the towns to find jobs1. Nelson Mandela a black leader of ANC led to the end of the oppression and discrimination of the black, the colored people, and Indians in 1994. Mandela became the president of South Africa under the party in the same year, and since then, ANC has ruled the country up to date (Mandela, Van, and Bouma 30)2. Background Nelson Mandela led the black people in the country to opposing apartheid from 1948 to 1994 when he was sworn in as the head of state. Mandela became a leader of ANC in 1948 when the government introduced the segregation of the citizens based on race and color. The racial classes that the Afrikaner government included whites, blacks, colored, and Indians. The colored people were the non-white and non-Indian such as the Italians (Claasens and Cousins 67). The whites were considered respectable and greater than all other races3. Mandela and other members of ANC struggled to negotiate with the government to end racial discrimination and oppression. The oppression that the black people underwent included serving the Dutch at low or no cost, being hindered from accessing education, and being blocked from leadership positions (Muiui 79). Mandela underwent several imprisonments as an ANC leader with the last one ending in 1990. The leader’s defeat of apartheid in South Afric

Marketing plan for dove skin-care products for men Essay

Marketing plan for dove skin-care products for men - Essay Example This is one of the most important parts of marketing – availability of information about products and people. The first information need that a marketer must meet is consumer orientation. We have to identify the target market, which in this case is the male population, aged 15-34-year-olds. This is a growing segment of users of facial skincare products. Skin care products, like moisturizers and deep-cleaning facewash, are products that should be built up through the marketing mix. More information of these products has to be analysed and enhanced as the information from the market segment becomes rich and valuable. A market analysis for introducing a new kind of product which, according to Mintel, is a need product for 15-34-year-olds of the UK male population, has to be done with several factors to be taken into consideration. It is not only the customers and their needs that we need to understand. We also have to take into consideration the organisation’s capabilities , and this includes our competitors’ capabilities, how the customers’ will respond or react to the product, the organisation’s economic needs, the technological aspects, and other important elements in the supply chain. If we have to anticipate customers’ needs and wants, we must have a thorough understanding of consumer behaviour. This part of marketing is complicated but it can be done through research and surveys. The needs and motivations of the male population, the 15-24 and the 15-34 demographics, can be accomplished through online surveys. Surveys can also be done by hiring an independent firm who knows the mechanics of surveying potential customers and their needs. The company needs marketing insight. Marketing insight is also known as â€Å"voice of the customer† over which the manager’s decision is to be based. A firm has to understand the customer; when this is accomplished, product planning and development, including department c ommunications and other relevant information, are easily done. Customer insight is attained by means of the activities in the marketing mix. With the Internet and Information Technology, advertising and promotion are easily accomplished. A firm can conduct online surveys and use the results in formulating plans and future product goals. Online surveys are popular these days. It can acquire a lot of information regarding the customer and their preferences on products and how products should be made. (Jobber and Lancaster 31) Marketing insight is similar to market orientation because it focuses on acquiring information about customers, competing firms, and the marketing environment. The information has to be examined and analysed in the context of the business perspective; how the information can be used to deliver products of value or quality; and how the product can satisfy the customer. (Lamb, Hair, and McDaniel 6) A. Overall Marketing Strategy for Dove From consumer orientation, t he firm must focus on customer satisfaction as part of marketing; meaning marketing should be customer focused and consumer oriented but should be in line with corporate objectives. The next part of the marketing concept is systems orientation. Marketing of Dove products must be a part of a system and to be implemented by a team functioning in unison. (Jobber & Lancaster 23) The key to a successful marketing is ensuring that the needs and wants of customers are met and the products provide these needs and wants. This is the trend in the globalised business. The company should attain customer loyalty, with a focus on the price. Men’s moisturizers may not be a new product but there might be stiff competition in the market. Companies might have taken it for granted but with the recent surveys provided by Mintel, what business needs now is product enhancement. And we can’t get this through outsourcing. Product enhancement should be done in-house. The marketing concept is b ased on the customer’