What are supply and demand shifters?

Demand shifters - population and demographics

Supply shifters - technology, weather, government, cost, price of competing items 

Product Standards to Process Standards 

EX. Expiry dates to how was the produce grown)

Assets that assist in the production or distribution of goods and serives that the firm cannot easily provide

Transportation, Communication, Finance, Production technology & Government

Small, family-run business. Most items produced for self-consumption.

Transportation - Horse & buggy

Communication - letter (slow and costly)

Finance - get money from informal credit markets

Production technology - relatively underdeveloped here

Goverment - set rules for exchange

Firms were small and local because it was the only option. Cannot transport materials, don't know market demand, production by hand

Some sectors still dominated by small firms

Others were dominated by large firms (ex. chemicals, steel and transportation - these businesses could get raw material)

Transporation - first car built

Communication - telephone, mail, telegrams (have ability to communicate quicker)

Finance - futures market & CBOT, larger banks, insurance

Production technology - mass production available, have steel

Government - set rules, contract laws 

New technology and expanded infrastructure made it cost effective to expand business. Many firms VERTICALLY INTEGRATED

Global competition, diversified firms, firms rely on cost advantages associated with high volume production

Transportation - roadways, air

Communication - low cost to communicate instantly

Finance - credit, venture capital

Production Technology - big data, can produce at low cost

Government - Infrastructure and R&D development, have regulated and de-regulated industries

Changes in market structure and infrastructure have led to smaller and flatter business organizations. Globalization has increased competition. Few vertically integrated firms left.