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Pricing in a volatile market.
Member rating: No Rating | Words: | Submitted: Tue Oct 14 2003
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Price case Pricing in a volatile market Questions : 1)What are the main causes of price volatility in a market? To what extent and how have this general causes applied in the pulp and paper market? First of all the fragmentation of the market causes prices to be volatile. Indeed a unique policy can not be set up and a sort of jungle's law is created. Each producer adapts its own prices as regard its operating costs, investments, volume of production.... More over the working rules are different from one country to another and standards of living are world's apart so it can easily explain the gap between two prices. As no single producer has a large production compare to the others, it can not impose its prices to the market and that is why it is obliged to cope with. The volatility of the market is also created by the gap between a so...
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