How do large companies often manipulate the markets? Explain with an example.

Question

1 Answer

answered Dec 4, 2019 by Annu03 (52.4k points)
selected Dec 5, 2019 by Kasis

Best answer

The large companies manipulate the market in the following ways:

Sometimes false information is passed on through media and other sources to attract consumers. For example, a company selling powder milk for babies as the most scientific product claiming it to be better than mother’s milk which although was a false claim.
Some food items were consumed in India for many years although it is very harmful for the health of people. But through attractive and convincing advertisements in media, it was able to control the market such as Maggie noddles manufactured by Nestle was found harmful after testing in India in May 2015.
They may also hide the essential information about the product like expiry date, contents, terms and conditions etc. to keep the consumers in dark.
Sometimes, the expired products are packed in a new packing and again released in the market.
It has also been evident that artificial scarcity is created by the producers and the product is hoarded for sale in future at a high price.