The Danish company Maersk Line is the largest shipping container company in the world, with (15-16 %)

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The Danish company Maersk Line is the largest shipping container company in the world, with \(15-16 \%\) of the global container market. According to an article in Shipping Watch (Kristiansen, 2012), the trade imbalance between Europe and Asia causes Maersk Line to spend about \(\$ 1\) billion every year shipping 2 million empty containers to Asia to be filled with products for European consumers. Use the concept of opportunity cost to explain the pros and cons of shipping companies coordinating their container transport to use competitors' empty containers situated closer to markets, in comparison to transporting their own thousands of kilometers away.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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