Answer to Question #10708 in Economics of Enterprise for Harry Williams
lives of the poor. Markets may fail when some are unable to access them or can
only access them on unfavorable terms. Improved telecommunications can lower the
cost of acquiring information, lower risks, and improve market efficiency. These
services can offer previously unconnected farmers access to up-to-date price
information and broaden market participation. Information and communication
technologies (ICT) allow potential participants to gather and communicate
information through means such as radio, cell phones and computer networks. ICT
reduce costs of connecting buyers and sellers. These cost savings, combined with
quick access to information and instant communication with trade partners, open
new market possibilities.
For example, if the company decides to launch a new
product line it will need to conduct a marketing research that requires the
collection of primary and secondary data. In case of the access to
market-related information means inaccurate data the marketers won't make
successful research and the company will have losses in profits. The reason is
that inaccurate data causes wrong choice of strategy and inefficient
concentration of resources. That's why access to market-related information
does in fact affect the outcomes.
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