Abstract
Volatility in consumer markets is different than primary markets. It largely depends on the functional factors in the market such as demand, consumer preferences, supply chain efficiency, innovation and technology, and pricing strategies. The chapter argues that as the thinking is changing, increasing globalization of the markets and technological interventions in business, there is both pragmatic and philosophical shifts in the international trade models. As such, the products and services life cycles and investment benchmarks in the international trade are changing frequently causing the volatility in business models. While addressing these factors, this chapter also analyzes the risk factors in international business toward new product development, brand equity, price volatility, and the ubiquitous role of consumer credit in doing business in the destination markets. The chapter argues that the market volatility and evolution of international market space is governed by the forces that are beyond the control of any company or investor that include government policies, availability of capital, international economic indicators such oil price volatility, and geopolitical conflicts.
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Rajagopal, Zlatev, V. (2018). Market Volatility and Risk Factors. In: Business Dynamics in North America. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57606-0_6
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DOI: https://doi.org/10.1007/978-3-319-57606-0_6
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