ntain profit
             margins, while a less than rate would decrease profit. The issue of market
             share then becomes important. If the Japanese increase prices, the price of
             the imported car will slowly reach parity with the American manufactured
             car and they would lose price advantage as well as market share. The basic
             premise behind this is the social process of exchange, which is defined by
             the satisfaction of the needs and wants of the consumer. This is also
             known as the "theory of arbitrage" where "if a good is cheaper in one place
             than another, people will buy more of it and drive its price up until the
             difference disappears" (Roubini and Backus Internet source).
             It is human nature to want to pay less. Price is determined by the
             demand, the ability to supply the demand and what the consumer is willing
             to pay. The price of a certain commodity is determined, at least in part,
             by the availability of similar products at prices that are competitive.
             The closer the price and the availability
             ...