What is the closure of the market?
Market closure is a strategy in which one group of participants in the market takes steps to limit the access of others to participation in this particular market. The strategy can occasionally be carried out with the support of the local or national government, usually as a means of regulating trade during the difficult economic period. The exact extent of restrictions can focus on preventing certain types of buyers and sellers in connection, with the expected result is a stronger market.
One way to close the market is to find ways to reduce the amount of competition between different participants on the market. This can often be a tool used by participants who are in a position to control velocity vertical integration because of their location in the supply chain itself. For example, a company that acts as an intermediary between manufacturers and consumers may be able to create a re -establishment in which exclusive distribution rights for the product are provided. When this happens,The radler will become the only source of the product, allowing the public release to be operated for the public. As a result, demand can exceed the supply, allowing the intermediary to generate higher sales revenues than would be possible if consumers had direct access to the manufacturer.
The idea of closing the market is often presented as exclusive negotiations. With this approach, potential competitors from the market are effectively excluded or decreased only to the ability to serve the limited sector of this market. This situation makes it difficult for competitors to increase market share and gradually expand business operations. At the same time, the government may decide to use this process of exclusive behavior for a certain period of time as a way of stabilizuna market by limiting the amount of market share that someone captures. In the case of this, the scope of competitors is somewhat limited in the ability to take over the market and assume a control position on this market, whichEffectively ensures that consumers have more options.
It is usually not determined by the market closure situation to last forever. If the government uses as a means of stabilizing industry or economic sector, restrictions will often be canceled after obtaining the desired result. Although it is possible to use the market closure as a means to create strangulation on the market, which is excluded by the buyer and the seller, situations of this type are usually sustainable only for a limited time before steps to compensate for restrictions and alternatives are again available.