The purpose of an industry analysis with an international trade focus is to assess the
performance and import/export behaviors of the industry.
The steps in an industry analysis are:
â€¢ Identify the industry and describe its market.
â€¢ Classify the market structure of the industry.
â€¢ Analyze the import/export status of the industry.
â€¢ Evaluate the future performance of the industry.
A. Introduction to the Industry and its Market
A. 1. Industry Definition and Description
The first task is to define the industry. An industry analysis often starts with a brief
introduction to the industry.
A. 2. Market Conditions
General market conditions faced by an industry are often important factors in the choice of
conduct by firms and for the ability of firms to generate profits and meet expected
performance goals. Identifying relevant general market conditions requires an analysis of:
â€¢ Supply and demand conditions that define the market.
â€¢ The overall market environment. Environmental factors are often identified with a PEST
methodology. The PEST acronym stands for Political/Legal, Economic, Sociocultural, and
B. Market Structure
Table 1: Classifications of Market Structure
Criteria Market Structure
Competition Oligopoly Monopoly
Number of Sellers Many Many Few One
Characteristics Homogenous Differentiated Homogeneous
or Differentiated Unique
Barriers to Entry None None High Very High
B. 1. Market Definition and the Relevant Market
B. 2. Number of Sellers
How many sellers are there? This question can be answered in two ways. First, we can
literally count the number of sellers. Second, we can measure the concentration of the
B. 2. a. Concentration Measures
Market concentration measures are used to classify how competitive an industry is.
Concentration measures help us to understand how much market share is concentrated in
the hands of a small number of firms. An industry characterized by low concentration will
have a large number of firms with small market shares. An industry characterized by high
concentration will have a small number of firms with relatively high market shares.
Industries with high concentrations are more likely to have market power, i.e. the ability to
Two commonly used concentration measures are the concentration ratio and the
B. 2. b. Classifying Industries
It is important to classify industries as to market structure because the greater the number of
sellers, the more likely the industry is competitive.
Classifying Industries with the CR4
Table 2: Classifying Industries with the CR4
CR4 Interpretation of Market Structure
CR4 = 0 Perfect Competition
0 < CR4 < 40 Effective Competition or Monopolistic Competition
40 <= CR4 < 60 Loose Oligopoly or Monopolistic Competition
60 <= CR4 Tight Oligopoly or Dominant Firm with a Competitive Fringe
90 <= CR1 Effective Monopoly (near monopoly) or Dominant Firm with a
Classifying Industries with the HHI and The Antitrust Division of the Department of
Table 3: Classifying Industries with the HHI
HHI Interpretation of Market Structure
HHI < 1000 Effective Competition or Monopolistic Competition
1000 < HHI < 1800 Monopolistic Competition or Oligopoly
1800 < HHI Oligopoly, Dominant Firm with a Competitive Fringe, or Monopoly
B. 3. Product Characteristics
An important criterion for classifying market structure is whether the product is
homogeneous, differentiated, or unique.
Sources for identifying product characteristics are company provided information (web
pages and information packages); company advertising and promotional materials, corporate
reports of publicly held corporations, periodical articles and news, and trade associations.
B. 4. Barriers to Entry (BTE)
The final criterion for classifying market structure is the level of barriers to entry in the long
run. There are three types of barriers to entry:
â€¢ Natural Barriers (economies of scale, economies of scope, absolute cost advantages,
capital costs, etc.)
â€¢ Strategic Barriers (actions taken by firms such as product differentiation and increasing the
cost of entry)
â€¢ Legal Barriers (patents, licenses, laws and regulations, etc.)
B. 5. Identifying Market Structure
Given answers to the number of sellers, product characteristics, and barriers to entry, a
researcher can identify the market structure of an industry using Table 1.
C. Import/Export Behaviors
C. 1. Import/Export Status
Illustrate the international trade status of the industry.
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
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It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>