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Explain two market forces that will impact the financial plan of-(Answered)

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Explain two market forces that will impact the financial plan of this company


Explain two market forces that will impact the financial plan of this company

 

Below is an outline of how the market forces will impact on the financial plan of this company can

 

you please expand.

 

Supply, demand and Price

 

Government ? Fiscal and Monetary policies

 


 

I.

 


 

First Market Force that will impact the financial plan:

 

A. Supply

 

1

 


 

It is important for suppliers to know how much products they are able to supply to buyers

 

and at what prices.

 


 

B. Demand

 

1

 


 

It is crucial for suppliers to find the right price that will achieve as much profit as possible

 

without causing demand to reduce

 


 

1. The ultimate goal of a business is to make profit therefore it is vital that supply and demand

 

be closely monitored in order to stay competitive in the market

 

C. Price

 

1

 

II.

 


 

Price will change as supply or demand changes. Therefore if an item is in demand and

 

supply begins to reduce, prices will increase. If supply exceeds demand then prices will fall

 


 

Second Market Force that will impact the financial plan

 

A. Government

 

1

 


 

Monetary Policy ? When government and Federal Reserve increase or decrease interest

 

rates they are able to effectively reduce or speed up growth within the economy

 


 

2. Fiscal Policy ? Whenever the government increase or contracts its spending they are able to

 

ease unemployment and/or stabilize prices. They can also alter interest and the amount of

 

dollars available on the open market. The government manages the investments that flow in

 

and out of the country

 


 

 

Paper#9255568 | Written in 27-Jul-2016

Price : $16
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