Task

Your task is to analyse the market for a consumer product Hand sanitizer,

You should:

Clearly and specifically identify the product that you are analysing (It is acceptable that the product you want to analyse does not exist in our life. In other words, you can imagine one. Just make sure in the real markets you can find the substitute products and complementary products for the product you select).

Describe the market for this product - What, if any, are the substitute (competing) products that are available in the market? What, if any, are the complementary products in the market?

Describe the demand side of the market - What are the key factors that influence consumer choice associated with the demand for the product? How these factors affect the demand for the product?

Describe the supply side of the market - What are the key factors that influence the supply? How these factors affect the supply of the product?

Without international trade, the product is mainly produced and consumed in country A (You can identify a country yourself). With international trade, country A may choose to export some of the products to other countries (i.e. selling at international markets) or import some of the products from other countries (i.e. purchasing from international markets). Using your knowledge on international trade, critically discuss under what conditions country A may choose to export and under what conditions country A may choose to import. Use examples and graphs to facilitate your discussions if you think you need them.

Supposing the government in country A imposes a 20% tariff on the product imported. Please discuss the changes of producer surplus and consumer surplus with and without international trade. Use examples and graphs to facilitate your discussions if you think you need them. (Note: before you analyse it, you need to decide (assume) a market price for the product)