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Project Report On

Global super market.

Submitted To
(Ms.Gitanjali Kapoor)


Submitted By

Ashok Ghosh Chetan Rane Dharmveer Rathore Krunal Mehta Rushikesh Patil Neeta Singh

C-06 C-07 C-08 C-14 C-29 C-57

A buyer's market refers to conditions in the sales of any type of product, where supply significantly exceeds demand. If you have a great supply of an item, the result is usually to lower prices for the consumer, or buyer. This can be wonderful for the consumer, but not so terrific for anyone trying to sell something when supply is high. A buyer's market is as poor for the seller as it is good for the buyer. You will see the term used in reference to real estate. In fact, this is frequently what buyer's market means. Essentially, within an area, homes for sale greatly exceed the number of people who wish to buy a home. Home values drop and many properties remain on the market for months since the buyer has considerable discretion in being able to choose a home at the best value. Sometimes, a boom in construction can create a market for buyers, especially if real estate developers have overestimated the amount of people who want to buy new homes. If building large real estate developments is coupled with falling employment rates, the real estate market may be perfect for those who do have stable jobs and can afford to buy a home. Falling employment rates, or refinancing during a sellers market, when demand exceeds supply, can create problems for homeowners. Inability to pay your mortgage may necessitate selling your home, and often some sellers are in a hurry to sell their homes before home values drop more, or before banks foreclose on their loans. They are most likely to take a lower price than the list price for their homes if they absolutely must sell in a hurry. The buyer's market can create something of a panic for people who have purchased real estate for investment. When home purchase prices go down, more houses may emerge on the market to be sold quickly before prices drop lower. Usually this panic only enhances the buyer's market, because there are even more homes available, and more room to bargain for a desired price. Both buyers and sellers markets can create distress, in the former case for the seller, and in the latter for the buyer. Trends tend to reverse and change, suggesting that if you can hold onto your home through a buyer's market, its likely the prices will once again change to your advantage perhaps even with a few months.

Buyer;s market is also known as monopsony. In economics, a monopsony (from Ancient Greek (monos) "single" + (opsnia) "purchase") is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers. As the only purchaser of a good or service, the "monopsonist" may dictate terms to its suppliers in the same manner that a monopolistcontrols the market for its buyers. The term was first introduced by Joan Robinson in her influential book, The Economics of Imperfect Competition. Robinson credits classics scholar Bertrand Hallward at the University of Cambridge with coining the term. A single-payer universal health care system, in which the government is the only "buyer" of health care services, is an example of a monopsony. It has also been argued that Wal-Mart, in the United States, functions as a monopsony in certain market segments, as its buying power for a given item may dwarf the remaining market. Another possible monopsony could develop in the exchange between the food industry and farmers.

Export promotion
Export promotion activities is to encourage increased sales of products that are currently available for export. All promotional efforts are based on existing production and aim at increasing the value of foreign sales by a given target. In recent years, some governments have focused on programmes of export development. Governments were responding to greater liberalization of foreign trade regulations and increased competition from abroad. Export development is different from export promotion, because export development aims at producing new export products and/or penetrating new markets that were not accessible before. The aim of export development activities is to identify existing opportunities and encourage new industries or production facilities to be set up in order to meet newly identified demands in the international market. To a great extent, export development can concentrate on product adaptation; that is, use of existing production capacity to manufacture new products when better markets are found for those products than for traditional products.The export development approach clearly requires more effort, resources, and persistence than the simple traditional export promotion approach. One consequence is that export development cannot always be fully adopted, given limits that might exist in many countries. In this manual, the two different definitions will be kept for export promotion and export development, but they will not always be kept separate as distinct activities. Most developing countries make export promotion and development a priority in order to achieve economic development goals. Governments expect that sustained export promotion and development efforts will help earn additional foreign exchange needed to cover the cost of imports, solve balance of payments problems, help reduce the burden of increased foreign indebtedness and create additional employment for people. Export development is not only desirable, but also absolutely necessary in some countries in order to widen a narrow export base. Foreign exchange earnings from a very limited number of export products often cannot generate enough additional foreign exchange, especially when there has been a decline in the international prices for some traditional export products of developing countries. In many developing countries, the business community of private exporters may need assistance to make appropriate contacts, after they have done market research and gathered information. This actually involves a number of complicated actions and considerations that should be examined in greater detail. Exporters who have not consolidated their presence in foreign markets do not usually have the resources to carry out export promotion and development activities, which are generally expensive. Gaps between resources needed and resources available are common in many developing countries. As a result, governments must fill these gaps, especially the financial gap. There are many general actions that need to be taken. Such basic export development activities must be provided as a public service, at least until individual exporters can cover the costs themselves. The export promotion and development strategy of a developing country will set the stage for determining the level and type of trade linkages with the international market. An example is Taiwan, Province of China

GLOBAL SUPERMARKET The effects of global market on price elasticity and producers income.
Before the New Economic Policy , Import substitution prevailed in the economy where foreign products were imported due to non availability of them in the local market.The New Economic Policy emphasised on Export promotion which encouraged local manufacturers and producers to produce similar products which were imported from abroad. The aim of New economic Policy was to produce locally hence reducing import expenditure. Due to NEP , a lot of local producers and manufacturers entered the market which slowly and gradually led to inefficient monopoly or a oligopoly market.This led to production of many similar products by producers because of which to buy a product the consumers had several choices to make.The availability of many products led to heavy competition between producers, where price was the key factor in deciding the producers market share and existence in the market. The elasticity that prevailed in the market was cross price elasticity , since the products were perfect substitute due to import substitution.Cross price elasticity measures the responsiveness of the demand of X product due to the price change of product Y.The higher the cross price elasticity the higher the competition and the lower the profit to the producers.Even a small price decrease by one producer forced the other producers to follow which led to loss or lower profit margins.