|1. market trend
|-the perceived direction of price movements over a particular period
|Looking at the market trend, sanitary supplies consumption has boomed in many countries due to the pandemic.
|2. hold sway over (something)
|-to have power or a very strong influence
|The demand for fuel holds sway over the world market.
|3. sin tax
|-a tax levied on goods, which includes material cost, direct, or services that are considered to be harmful or costly to society
|The Philippines has imposed a higher sin tax on tobacco products and liquor.
|-to officially force a rule, tax, punishment, etc. to be obeyed or received
|Certain countries want to impose taxes on landfill waste.
|5. market price
|-the current price at which a good or service can be purchased or sold
|Supply and demand are two important factors to determine market prices.
|1. market trend
|2.hold sway over (something)
Lecture I: Market Trends
How Government Policies Affect Market Trends
The government holds much sway over the free markets. In this session, we will learn how strict government policies can cause a shift in market trends. Many economists have conducted various research on this. Based on the gathered information, this factor may result in slow progress.
The two most common policies mentioned in their research are sin taxes and trading regulations, which both affect the market differently. Sin taxes bring more revenue, while trading regulations draw limitations to more business opportunities. Thus, market trends are highly influenced by strict government policies.
For example, if the government imposes a higher tax rate, consumers tend to spend less. Thus, this may cause a decrease in market prices. Meanwhile, consumers tend to spend more if the tax rate set by the government is lower. Due to this, the trend tends to be more unstable.
|You are participating in a marketing seminar about the factors that affect market trends. You receive a lecture manual that serves as your lecture guide. Kindly relay the information found in the manual to your tutor, who will play the role of your coworker. Please use the following points in your conversation:
1) Factor: the law of supply and demand
2) Effect: price fluctuations
3) Impact on the market: short-term trends
|Could you share your knowledge about market trends?
|How does your company study market trends?