The World market
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The World market
There are many factories worldwide. They produce more than 200 products and services. Some products are in oversupply and others may be in short supply. Over supply will result in lower prices, as products remain unsold. Shortage of products will result in higher prices. Severe shortages may cause more damage down the line as many corporations need products in their own production process and cannot produce if supplies are not available.
An automatic process drives corporations in the world. If some of their products remain unsold on the market, these corporations will adjust their production levels and start producing less. Their output will be reduced repeatedly and some of their staff will be fired. These reductions will result in reduced offerings on the world market and reduced use of materials. The changes in production levels will gradually bring stabilization of supply and demand.
On the other hand, shortages in the market will cause corporations to produce at 100% of their capacity. If even this is not sufficient, the automatic corporation building process will start new corporation in many countries that do not have a president. These corporations will make the products that are in short supply and again support a stable supply and demand in the world.
Presidents and CEO players will also react to over supply and demand and adjust their production. This results in a dynamic market and many opportunities for good business.
Very severe shortages may however cause wide range damage on the market. If the shortage in a widely used product becomes larger than a complete month supply and this shortage continues for a long period, thousands of corporations may stop their production and many may close.
As a president or CEO, you should watch the market numbers for extreme shortages and in some cases manually purchase raw materials at any price, to prevent corporations from failure.
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