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is determined by corresponding availability(demand) and need(supply) of that good in the market. The price of a good will remain constant only when the demand at a given price is equal to the supply at constant price.

There are four basic laws of supply and demand which govern the prices are

If demand for a product increases and the supply remains unchanged then the price of the product increases.

If demand for the product decreases and supply remains the same then the price of the product decreases.

If supply for the product increases and demand remains unchanged then price of the product decreases.

If supply for the product decreases and demand remains the same then the price of the product increases.

Behaviour and competitive strategies

Competitive strategy is an important pattern of planned resource deployment, objectives and also the interaction of environmental factors with the competitors in the market. The means to differentiate the company form the position that its competitors hold are through the strengths and weaknesses that will better satisfy their customers and stakeholders. Some of the strategies that can be employed for this purpose are explained as follows:

Customer based strategy: Under this, the market is segmented based on the usual ways of the consumer. The differentiation can be on location, use or demographic characteristics.

Competitive based strategy: For this, the organization’s key competitors have to be identified and their strengths determined. The customer’s response to the strategies is crucial as well. A feedback process is essential in order to identify the deviation.

Company based strategy: The company price is increased in the functional areas. For this it becomes necessary to know the functional areas. In terms of priority it may undergo variation.

There are instances when permitting the competitor to win in some unattractive segments can win the company a good foothold within the market. This might give the company a superior outlook and a situation in which it will become difficult for the competitor to re-establish.

Competition commission are independent regulatory bodies which carry out in-depth analysis into markets and major industries as an attempt to make sure there is only a healthy competition between companies benefitting the customers, economy and the company.

International Trade

International trade is said to be any exchange of money for goods or any other services between any two countries. In many such countries, it forms an integral part of its economy. While this trading system is there for centuries, its economic and political importance has been on the rise only recently. Usually trade was monitored through agreements between two countries. But later the concept of free trade emerged and this became the dominant thinking among western nations since then. After the end of the Second World War many treaties and agreements were signed between nations, and free trade between a lot of nations became rampant in the era. The World Trade Organization which is the governing body and to promote free trade between nations has supervised many such treaties and agreements between nations. But these trade agreements have quite often resulted in conflict of interests and protest with claims