Market Interaction

Posted: December 6, 2010 in Social Studies 10

Market interaction was a topic that our class learned about in depth.  In class we learned about the various market interactions dealing with sugar.  We were then sent to find article discussing it.  I found an article dealing with Chinese millionaires purchasing private jets.

The article discusses that as the industrialization of China continues, the market for airplanes is increasing.  This has to do with the Chinese millionaires actually being capable of purchasing airplanes, along with the communist Chinese government becoming more capitalist.  Due to these two factors, more and more people are buying their own private planes.  The article even states that there are waiting lists in China, so it would appear that they have reached a point of shortage.  A major point that wasn’t discussed in the article was that since many products are created in China, this seems to be creating a cycle of prosperity.  In sharp contrast to the cycle of poverty, the millionaires buying planes are allowing the plane manufacturers to become more prosperous.    As a result, they too will be able to afford planes.  Basically, as a result of the world’s use of China as a major manufacturer, the people of China have been getting richer, and gaining more profits, so they can influence the airplane market.  The markets that interact in this scenario are the industrialized manufacturing market and the private airplane market.    This type of market interaction is the most basic, and least complex that I know of.  And it’s the easiest for the untrained eye, like mine, to spot.

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