External factors that influence the price

External factors affecting the price are seven described below .

• The nature of the market. In a market of free competition we adjust to agreements between
supply and demand , in contrast to a monopoly we adjust the price agreed by the company
issues the good or service.

• international political principles . Especially the political changes in the countries most
developed make the rest of the world to rise up to the decision of global markets .

• Economic policy of the government. This occurs in every country with economic decisions
government , each government movement corresponds a decision on the world market , which
must protect the rulers are the economic reserves of each country to avoid federal disasters.

• Economic situation . Economic cycles ranging from totally dependent manner to the wishes
consumers , their ups and downs affecting all mankind in general. For example , the high and low
in oil prices since this fuel has been depleted , since there is no country that
does not depend on this hydrocarbon .

• Level in national or provincial income . This is mentioned because in every country there are more prosperous
others , therefore, consumption income is applicable for the area of the talk .

• Development replacements . Changes in the quality of articles on the surrogates
market today , make price changes are more beneficial to the substitutes for
goods and that the main causes demand to grow at a similar rate . For example in marks
tennis shoes .

When demand for a good or service is high its price tends to rise , while in the
otherwise tends to drop . This is the case of price fluctuation , which depends on the
movements in supply and demand in the markets.

An example of fluctuation is the period in which the price tends to commonly climb decembrinas times,
since most of the companies provide a necessary resource and won by all
workers called " aguinaldo " . Therefore, the demand tends to shift to the right in
all goods and services.