The natural resources, directly or indirectly, fulfill most of our basic needs.

Most of them cannot be used directly and need processing. The organised human effort to convert raw materials into useful products is called manufacturing. The development of industries is important for the economic growth of a country. Thus, almost all the countries in the world, big or small, rich or poor, developed or developing, are making sincere efforts to promote industrialisation. Industries help in removing poverty and unemployment. The Industrial Revolution in the 18th century, first to ok place in Great Britain and later on spread to Western Europe. It resulted in the growth and development of modern and big factories. This revolution brought in a new relationship between human beings, machines and natural resources.

Answer:
migration factors; research has it that majority of the people who migrate to foreign lands are more inclined to becoming self employed and most of them engage in businesses because of the following factors; - capital accessibility - availability of support networks - market accessibility - business experiences - employment history form previous industrial expertise. - government policies in the foreign country. upbringing factors; these may include family role models, experience got from receiving prizes etc such factors mainly look at the personal characteristics of an individual such can be; age, sex, income level, education level, place of residence. it may also include childhood experiences such as family tragedies like loss of parents, sustaining injuries e.t.c. Personality factors; these mainly look at the an individuals motivations, emotions, behaviors and personal attributes. motivations and emotions of an individual can be exhibited by the persons' desire to be independent, competitive and solver of problems. A person's behavioural characteristics can be exhibited in a person's desire to take risks, to be an achiever, to be opportunity oriented. A person's attributes are that person's preferred style e.g being an introvert or an extrovert, being a receiver or observer e.t.c..

speculators can actually increase production through their willingness to take on risk. and therefore promote [citation needed] an efficient market. and the . the farmer can hedge the price risk and is now willing to plant the corn. and hence make the prices better reflect the true quality of operation of the firms Forward Buying : Forward Buying as the name suggests is the system under which buying is done with longer term in perspective. Producers encouraged by the high price further lessen the shortage by growing or importing to reduce the shortage. Thus. and prices can become distorted Bearing risks[edit] Speculators also perform a very important risk bearing role that is beneficial to society. The items may be those that are needed for internal consumption but the quantity shall be much more than the requirement so as to take advantage of the coming price rise. hoping to profit from the scarcity by buying. When a harvest is too small to satisfy consumption at its normal rate. he might not want to do so because he is concerned that the price might fall too far by harvest time. The economic benefits of speculation Sustainable consumption level Let's consider some of the principles that explain the causes of shortages and surpluses and the role of speculators. a farmer might be considering planting corn on some unused farmland. Depending upon the availability of the item. speculators come in. normally for a period of one year. the financial policies. the economic order quantity.Speculative Buying When purchasing is done purely from the point of view of taking advantage of a speculated rise in price of the commodity it is called Speculative buying. It is not meant for meeting the present consumption requirement. thereby checking consumption so that the smaller supply will last longer. Market liquidity and efficiency A commodity speculator may exploit the difference in the spread and. But it is also true that. Some schools of thought argue that speculators increase the liquidity in a market. Alas. in competition with other speculators. For example. By selling his crop in advance at a fixed price to a speculator. the quantitative discounts. It is rather a commitment on part of both the buyer and the seller . The intent is not to buy for the internal consumption but to resell the commodity at a later date when the prices have gone up and to make a profit by selling. Finding environmental and other risks[edit] Hedge funds that do fundamental analysis "are far more likely than other investors to try to identify a firm’s off -balancesheet exposures". reduce the spread. Their purchases raise the price. including "environmental or social liabilities present in a market or company but not explicitly accounted for in traditional numeric valuation or mainstream investor analysis". underlying real demand and supply can become diminishingly small compared to trading volume. as more and more speculators participate in a market.

If an agreement is vague and its meaning cannot be ascertained. but it must be lawful. Lawful object:. It is a process related to retail inventories.Generally. This 'something' is described in law as 'consideration'.An agreement expressly declared to be void under the Contract Act or under any other law. it cannot be enforced.the terms of a contract must be such as are capable of performance. It is usually done for Raw materials but is not limited to it. Consideration is an essential element of a valid contract. However. Certainity and possibility of performance:. or trade. the buyer and the supplier. a contract may be oral or in writing. thus. particularly in the commodity market by selling or buying contracts.misrepresentation or mistake. They give the discounts to the retailer and retailer also get benefited by getting better profit margins. This consideration may be past. It is the price for which the promise of the other is bought.The object of the agreement must be lawful. An agreement is unlawful. it would defeat the provisions of any law (v) causes injury to the person or property of another (vi) opposed to public policy.A contract is basically a bargain between two parties. with competition becoming globalised such an arrangement is a win-win situation for both .(i) illegal (ii) immoral (iii) fraudulent (iv) of a nature that. The Contract Act declares void certain types of agreements such as those in restraint of marriage. if permitted. An agreement by incompetent parties shall be a legal nullity. Not expressly declared void:.The contracting parties must give their consent freely. While. This is used when manufactures are overstocked and they want to clear the inventory. Also. the future commitment is decided. Legal formalities:. is not enforceable and is. fraud. The consideration may be in the form of money. The absence of free consent would affect the legal enforceability of a contract. the person to whom the offer is made is called the 'offeree' and the person who accepts the offer is called the 'acceptor'.The parties must intend to create a legal obligation. of a sound mind. Forward buying helps a firm in booking capacity of a supplier and thus often results into a safeguard against a competitor acquiring his capacity.staggered delivery. The person who makes the 'proposal' or 'offer' is called the 'promisor' or 'offeror'. Now a days . This is practised by retailer when they find manufacturers selling the product at a discounted price and purchase the items bulk. Legal obligations :. Competent parties:. Essential Elements of a Contract Minimum two parties :. each receiving 'something' of value or benefit to them.The parties making the contract must be legally competent in the sense that each must be of the age of majority. services rendered. Now when the price of the product is set to original price by the manufacturer. Consent is said to be free if it is not induced by coercion.The terms of a contract must not be vague or uncertain.There must be an 'offer' and an 'acceptance' to the offer. Free consent:. 'Consent' means that the parties must agree about the subject matter of the agreement in the same sense and at the same time.The agreement sought to be enforced should contemplate legal relations between the parties to it. certain contracts are required to be in writing . One party has to make an offer and other must accept it. An agreement to do an impossible act is void and is not enforceable by law. Lawful consideration:. A contract without consideration is void. not a contract. Both offer and acceptance should be lawful. Offer and acceptance :. and not expressly disqualified from contracting. retailer can make profit by selling the item purchased at low price earlier. present or future. wherein they are purchased in quantity excess to demand. or legal proceedings as well as wagering agreements. goods exchanged or a sacrifice which is of value to the other party. if it is:.Atleast two parties are needed to enter into a contact. resulting into an agreement. undue influence. A few organisations do “hedge”.

This means that the offer must be accepted exactly as offered without conditions. There can be many offers and counter offers before there is an agreement. For example: A quotation by sub-contractor to the main contractor and an offer to lease. or letters of intent. if the offer is withdrawn before it is accepted. in writing. it is the acceptance of that offer that brings the negotiations to an end by establishing the terms and conditions of the contract. An offer will lapse:    when the time for acceptance expires. or after a reasonable time in the circumstances (generally the greater the value of the contract. In any case. the longer the life of the offer). or inferred by action which clearly indicates acceptance (performance of the contract). where law requires an agreement to be put in writing or be registered. If any new terms are suggested this is regarded as a counter offer which can be accepted or rejected. clearly stated offer to do something. Offer There must be a definite. . the acceptance must conform with the method prescribed by the offerer for it to be effective. An offer does not include ball park estimates. For instance. Therefore. It is not important who makes the final offer. Acceptance Only what is offered can be accepted.and may even require registration. the same must be complied with. expressions of interest. the Indian Trusts Act requires the creation of a trust to be reduced to writing. requests for proposals. Acceptance can be given verbally.

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