Global events can really change how much people want to buy and how much is available to sell. Here’s what happens:
Consumer Confidence: When big things happen around the world, like a pandemic or a financial crisis, people often become more careful with their money. When people spend less, it causes a drop in demand.
Exports and Imports: If other countries are having a hard time, they might buy fewer products from us. This means our sales to them go down, which also reduces demand.
Supply Chain Disruptions: Big global events can mess up the way products are made and delivered. If it's harder to get goods, then there’s less available to buy, which means supply goes down.
Input Costs: Events like natural disasters or trade disagreements can make the cost of materials go up. When it costs more to get what you need, it can lower the overall supply.
In short, what happens globally can have a big effect on both what people want to buy and what is available for sale.
Global events can really change how much people want to buy and how much is available to sell. Here’s what happens:
Consumer Confidence: When big things happen around the world, like a pandemic or a financial crisis, people often become more careful with their money. When people spend less, it causes a drop in demand.
Exports and Imports: If other countries are having a hard time, they might buy fewer products from us. This means our sales to them go down, which also reduces demand.
Supply Chain Disruptions: Big global events can mess up the way products are made and delivered. If it's harder to get goods, then there’s less available to buy, which means supply goes down.
Input Costs: Events like natural disasters or trade disagreements can make the cost of materials go up. When it costs more to get what you need, it can lower the overall supply.
In short, what happens globally can have a big effect on both what people want to buy and what is available for sale.