Question

Intensive fishing in an area by a boat may increase profits earned by the boat owner. However, if many boats excessively fish in the same area, the stock of fish will become depleted and all will be worse off. This is an example of

Answer 1

This is an example of "Liberlization of trade in fisheries business".

With catch control the total amount caught from a stock of fish is controlled, either directly through a limit on the total catch or indirectly through limitations on the activities of the fishing vessels. In this regime there is still open access, however, in the sense that anyone can participate in the fishery, provided he or she satisfies requirements pertaining to country of residence, etc. Under this regime the biological overexploitation of the fish stocks can be avoided by setting the total catch limit appropriately. Economically little or nothing is gained, however. The marginal fisherman or fishing firm still contribute much less to the economy than they would in an alternative occupation, not because they reduce the productivity of the fish stocks but because each takes fish that somebody else could catch. This leads to unnecessarily large fishing fleets and high costs of fishing and erodes what otherwise would emerge as rent in the fishing industry