Question

1) Identify a business, market, or industry (your choice). Describe the overall business environment, identifying the underlying determinants of both supply and demand for the participants involved. What are the elements that shape the market you have chosen? Are there currently any internal or external dynamic changes occurring? Are there surpluses or shortages?

Answer 1

The one business or market / industry which I would like to identify is automobile, the overall business environment depends on number of factors such as credit availability, disposable cash in the hands of public, how is the inflation and whether people are able to afford, due to global economic slowdown, the demand is a little low and the supply is in excess because of increase in capacity. The world is divided whether to embrace electric cars which are expensive or the increased fuel efficient cars.

Elements such as government incentives, globalised trade and increase in earning capacity of the general public shape the market, improvement in the infrastructure also plays a major role.

Currently because of volatility in the fuel prices, increasing chances of people wanting to go green, and climate change are the major factors which could influence the industry.

Currently there is a clear-cut surplus in the market as there are too many factories making cars which have dismal demand.