Macro and Micro Economics - Chinas Printing Industry - Essay Example

Due to the increase in the price of crude oil which is the key element for ink manufacturing and technological advancements, the revenue of organizations has been severely impacted (Jailing, 2011). Considering the developments taking place at an accelerating rate worldwide in the ink industry, the prices of these products will increase which will affect the demand for this product. For the company being reviewed, the firm’s elasticity of demand for this product is elastic as an increase in price will affect the demand for ink in the digital printing industry. There is a high demand for inks that are suitable for the high-value digital industry along with energy-cured inks. The market for this ink comprises packaging and commercial printing and publishing companies.

In the future i.e. next five years, it is expected that the demand for sleek magazines and catalogs will increase which will mean that there will be increased demand for ink systems that are energy curable along with the usage of equipment for printing presses that are fast and automated. Two types of inks are gaining popularity i.e. water-based inks and vegetable oil-based inks to support the production of environmentally friendly products so that ecological pollution can be minimized. It is expected that demand for digital inks will increase by 3.7% in the next five years i.e. 2017 (Electronics Industry, 2012). The increase in demand is expected because of the increasing requirement for technology that has a screen-printing feature, the establishment of departments responsible for internal graphics that facilitate a professional level of quality, computer usage will get tripled in the future and in-house printing needs being required both small and large scale companies. The digital ink segment will see accelerating growth in the future because of the exponential expansion of inkjet printing (Electronics Industry, 2012). Read More