Price-sales guarantee

A price-sales guarantee is a state instrument for market regulation . The state guarantees national producers a minimum selling price of the i. A. is above the world market price . Due to the unchanged demand, surplus situations arise . In extreme cases, the surplus goods can only be sold at world market prices; the overall balance of a price-sales guarantee usually has a negative impact on the national net welfare .

The macroeconomic benefit of price-sales guarantees is, like many of the market-regulating measures, controversial. They have a negative impact on the global economy, especially for emerging and developing countries .

In Europe there is u. a. a price-sales guarantee for wheat .

See also: Fixed Prices , World Trade Organization , Protectionism , Customs (levy)

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