Describe the important of consumer sovereignty in the present global environment?
Answers
Answer:
Consumer sovereignty is an important concept of classical economic.
Explanation:
This assumes that consumers have the freedom and ability to choose between supplies and firms.
Given today's global scenario, consumer sovereignty is an important part of the economy. Globalisation has made free trade pacts very common. This has opened up the domestic markets to products sourced from abroad. So the consumer has a huge range of products to choose from in terms of price, quality and after purchase services. Consumer sovereignty thus refers to the freedom that the consumer enjoys in choosing from a wide range of production services, while keeping his own criteria in mind. Consumer sovereignty therefore theoretically dictates trade inflow and outflow. For instance a large percentage of people in India prefer to buy cheap goods from China. This helps China increase its exports but drastically affects the domestic Indian producers and suppliers. So, consumer sovereignty has an important role to play in both national and international trade.