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orchidsperuflora.com • View topic - market competition in product prices

market competition in product prices

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Postby qizhenapp » Thu Dec 14, 2017 7:25 am

The appreciation of Renminbi directly leads to the decrease of RMB income from export of enterprises so that the relative proportion of fixed costs in the unit price of a product is relatively increased, forcing the export price to increase, which means that the price competitiveness of export products abroad will decline.
Yanbian wooden floor export enterprises are mainly labor-intensive and low value-added products, the main advantage of their participation in international market competition in product prices, and its narrow profit margins, the ability to bear the cost pressures is very limited.
Therefore, the RMB appreciation directly weakened the price advantage of its products, coupled with rising domestic raw material prices caused by the rise in production costs, leading to the reduction of operating profits, profit margins decline.
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