DISEQUILIBRIUM IN BALANCE OF PAYMENT

Disequilibrium in balance of payment
The balance of payment of a country is said to be in equilibrium when the demand for foreign exchange is exactly equivalent to the supply of it . The balance of payment is in disequilibrium when there is either a surplus or deficit in the balance of payments. When there is deficit in the balance of payments, the demand for foreign exchange exceeds the demand for it.
A number of factors may cause disequilibrium in the balance of payments. These causes may be broadly categorised into:
1. Economic factors ;
2. Political factors ;
3. Sociological factors.
1. Economic factors
i. Development Disequilibrium
Large scale development expenditures usually increase the purchasing power, aggregate demand and prices, resulting in substantially large imports. The development disequilibrium is common in developing countries, because the above factores, and large scale capital goods imports needed for carrying out the various development programmes, give rise to a deficit in the balance of payments.
ii. Capital Disequilibrium
Cyclical fluctuations in general business activity are one of the prominent reasons for the balance of payments disequilibrium. As Lawrance W. Towle points out, depression always brings about a drastic shrinkage in world trade, while prosperity stimulates it. A country enjoying a boom all by itself ordinarily experiences more rapid growth in its imports than its exports, while the opposite is true of other countries. But production in the other countries will be activated as a result of the increase exports to the boom country.
iii. Secular disequilibrium
Sometimes, the balance of payments disequilibrium persists for a long time because of certain secular trends in the economy. For instance in a developed country, the disposal income is generally very high and, therefore, the aggregate demand, too, is very high. At the same time, production costs are very high because of the higher wages. This naturally results in higher prices. These two factors-high domestic prices may result in the imports being much higher than the exports. This could be one of the reasons for the persistent balance of payments deficits of the USA.
iv. Structural disequilibrium
Structural changes in the economy may also cause balance of payments disequilibrium. Such structural changes include the development of alternative sources of supply, the development of better substitutes, the exhaustion of productive resources, the changes in transport routes and costs, etc.

2. Political Factors
Certain political factors may also produce a balance of payment disequilibrium. For, instance a country plagued with political instability may experience large capital outflows, inadequacy of domestic investment and production, etc. These factors may sometimes, cause disequilibrium in the balance of payments. Further factors like wars, changes in world trade routes, etc. may also produce balance of payments difficulties.

3. Social Factors
Certain social factors may also produce a balance of payments. For instance, changes in tastes, preferences, fashion, etc. may affect imports and exports and thereby affect the balance of payments.

Correction of disequilibrium
A country may not bother about surplus in the balance of payment; but every country strives to remove or at least to reduce, a balance of payment deflects. A number of measures are available to correcting the disequilibrium. Some of them as follows
1. Automatic corrections
The balance of payment may be automatically corrected under the paper currency standard. The theory of automatic correction is that if market forces of demand & supply are allowed to have free play the equilibrium will automatically be restored in course of time.

VIDEOCON CHANNELS USED FOR MARKETING

Live project on marketing
Channels used by
Videocon

Corporate Profile
The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.
Today the group operates through 4 key sectors:




Consumer Durables
Thomson CPT
CRT Glass
Oil & Gas
Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our inhouse compressor manufacturing technology in Bangalore.Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.Colour Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs.Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally

These are the mein business doing by the company
1. India’s No.1 Consumer Electronics & Home Appliances Company.
2.Implements Complete Backward Integration from sand to branded TV’s.
3. 30% market share in Consumer Electronics & Durables.
4.Low production cost from Ravva Oil drives up the bottom line.
5.Will soon foray into DTH, Retail, Telecom & Power.
6.Diversified goods portfolio.
7.Caters to lower, middle & premium segments of the market.
8.Wide distribution network.
9. major brands under its kit. Recently acquired Planet M.

These are the consumer durable goods of Videocon company

Channel management
Channel management is very important process of marketing of the product .videocon also think that these problem and select good member of channel.
Sales efficiency, product knowledge, experience, and administrative ability these point conceder at that time of selection of Videocon channel members.
channel member training
training of channel member is important for the manufacturer ,it is the channel members who actually deal with the end customer and not the manufacturer these is also doing by the Videocon company they giving training to the channel member
Motivation Motivation mean giving the channel members reward for performance .videocon reward to the channel member for the basis of maximum sales.

Distribution channel of Videocon(consumer durable goods)

First the company think that how the our product are rich to the customer that’s why giving the authorized dealership to dealer in each major cities sinpal way to understand from the flowing chart

Company manufacturer

Company dealer

Authorized dealer

Retailer

Consumer



Vertical marketing system

The Videocon Company used the vertical marketing system (vms). Its means these is process where producers, wholesalers and retailer perform in marketing jointly.
Company showrooms
Videocon company have own showroom in big cities for direct sales to the costumers .satisfy them its fully own by the company
Channel conflicts
Mostly the other company channel members and company between them some conflict but in Videocon company there is no conflict between members and company

OBJECTIVES AND EQUILIBRIUM OF THE FIRM

MARKET STRUCTURE

INTRODUCTION:-
The knowledge of market structure in which various firm operate helps to understand how the firm decides the quantity of the product and price the firm has to fix in order to achieve maximization of profit.the objective of the firms and industry which comprises of large numbers of firms which produce the same product,is maximization of profit,besides sales and growth of firm.the price decision is based on basis principles of market i.e. demand and supply through equilibrium of the firm.