Economic Systems: Capitalism, Socialism, Globalization & Labor
Economic Systems and Global Markets
The state is a key public agent in the economy, aiming to benefit the largest number of people.
Economic Systems
Economic systems are methods of organizing and conducting economic activity. The main systems include:
Socialist Systems
Also known as communist or centrally planned economies, these systems are organized by the state. The state determines production, distribution, prices, and worker compensation.
Capitalist Systems
In capitalism, economic activity is regulated
Read MoreMarket Dynamics: Supply, Demand, and Competition
Combined Market Trading Activities of a Particular Product
Suppliers’ Demand
Made when a certain amount of goods are willingly acquired by applicants at a fixed price. The demand curve is a good graphical representation of the demand function, which shows different amounts of that property buyers are willing to acquire at each price.
Disposable Income
- Inferior goods: Are less with increasing demand.
- Normal goods: The number increases in direct proportion to income.
- Luxury goods: Consumption increases
Market Dynamics: Understanding Supply, Demand, and Equilibrium
Understanding Market Dynamics
The market can be seen as a social institution where buyers and sellers interact to conduct transactions for goods and services.
Key Market Factors
Market factors influence the dynamics of supply and demand.
Demand
Demand represents the quantity and quality of goods and services consumers are willing to purchase at various prices within a specific timeframe.
Factors Affecting Demand
- Price: Generally, higher prices lead to lower demand, and vice versa.
- Income: Increased income
Market Demand, Share, and Research: A Comprehensive Analysis
Understanding Market Dynamics
Potential demand is the maximum sales achievable in a given period. It may not include consumer preferences or competitor actions. The difference between total and potential demand is that potential demand is theoretical, while total demand is real.
Market Share Explained
Market share is the proportion of total sales a company captures. It’s calculated using a specific formula, showing the percentage of products bought from the company within the market.
What is Market
Read MoreMarketing Plan & Product Viability: Key Strategies
Marketing Plan
The marketing plan provides information on product/service marketing. It defines the product/service market, considering variants, quantity, brand, design, and lifecycle phase. These characteristics are compared with competitors’ offerings.
Communication Policy: We will specify how the product/service will be announced, describing appropriate media (internet, local press, leaflets, etc.) and actions (advertising and sales promotion). Advertising aims to showcase our product/service,
Read MoreB2B Channel Strategies: Control, Conflict, and Pricing
B2B Channel Support
- Financial incentives: attractive commission rates, margins, and bonuses.
- Territorial exclusivity.
- Supplier resources: sales team involvement, market research, communication support, and staff training.
- Strong working relationships: joint planning, appreciation of intermediary efforts, regular communication, and long-term commitment.
B2B Channel Control
- Natural/Market Power
- Contractual control
- Trust
B2B Channel Conflict
Sources of conflict are multiple:
- Differences in objectives
- Differences