Reference no: EM133413736
Case Study: Most industries (e.g., steel, sugar, automotive) tend to organize into trade associations to lobby Congress on issues related to regulatory, trade, or tax policy, among others. For each of the following situations, describe the likelihood that industries will successfully organize to lobby on policy issues favorable to each sector and obtain outcomes advantageous to all individuals in the industry (whether or not they have contributed). If there is a clear answer, explain the reasoning behind that prediction. One industry has a high number of small producing firms while another has a low number of large producing firms.
Questions:
Both industries have a medium number of firms, but, in one, lobbying can only succeed if there is near universal support while, in the other, lobbying will only succeed with the contribution of about 50 percent of the firms.
All companies in one industry agree on the policy priorities they should have, but in another industry there is widespread disagreement about the objectives of lobbying efforts.
One industry has firms of similar size, while another has a few large firms (whose contributions are proportionally effective) and a large number of small firms.
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