Question

What is it more difficult for retailers to manage their business when economic turbulence is high?

What is it more difficult for retailers to manage their business when economic turbulence is high?

Homework Answers

Answer #1

During times when economic turbulence is high, it is difficult for retailers to manage their business because they have to control both their buyers and suppliers. That is, they have to make sure that buyers dont stop buying from them and also that suppliers dont stop providing them with goods at market rates.

During such testing times, consumer confidence in the economy is shaking and external influences affect market equilibrium. This makes it difficult for retailers, who act like middlemen to make sure the consumers don't withdraw from the market as it would lead to reduced demand and thus depressed economy. Hence, the entire burden of managing falls on the retailer who finds it difficult to convince buyers to maintain confidence in the economy.

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