How market forces govern your life?
Whether you are self-employed, businessmen or an employee, your life is greatly affected by the market forces. From our day-to-day personal decisions to career-related choices- is shaped by market forces.
You cannot jump into any business & get successful in it. You need a thorough business plan, strategy & skills to make it profitable.
You have to tune your business with respect to market forces.
♡ Suppose you manufacture a product for which there is no demand, you will fail miserably & will lose all the capital invested.
♡ Suppose you manufacture a product for which there is no demand currently. Then you are left with only one option that is to sell it at cheap price so that you can minimise the losses.
♡ Competitiveness decreases the market price of a product so “profits becomes decrease over time” generally.
Salary of employees is governed by Demand & Supply. The most affected are the entry-level job holders.
I always quote this,
“In my first year of college life, I met many final year seniors & asked them what was the salary offered to them. The reply was 3 LPA in most cases”.
After four years, the situation has gone worse as the salaries have gone down due to surplus of engineers in the country.
It is expected to become even worse as the Education system has failed to produce more entrepreneurs.
Your buying decisions are also moulded by the market forces. If there is discount you tend to buy more.
When the prices go up (like that of onions) people tend to decrease its consumption.
P.S. As the country becomes more & more liberalised, the market forces will tend to govern our life more. The prices of goods & services should fall down in theory due to competitiveness (but usually that doesn’t happen due to cartels & other reasons).
With Great Love,
Er. Amit Yadav