Price as a variable element in the economic environment Ieva Bruksle School of Business Administration “Turiba “ Latvia Ieva Bruksle

Price as the element of economic environment the central problem of any market is the price setting; the price is the measure of value; the price acts as the source of information, motivation, as well as the stimulating (regulatory) mechanism. Ieva Bruksle

Price One of the most visible elements of the economy affects all members of society consumers producers, government sensitive element in the economic environment Ieva Bruksle

GDP Rank GDP per Rank GDP (millions capita real growth GDP figures in 2009 14,270,000 1 46,400 10 -2,4 5,049,000 2 39,700 18 -5,7 4,758,000 3 3,175 103 8,7 3,235,000 4 39,300 20 -5 2,635,000 5 41,100 17 -2,1 1,255,000 11 9,000 58 -7,9 1,243,000 12 1,078 142 6,1 369,000 25 79,200 4 -1,1 35,960 80 10,100 55 -16,8 24,200 92 10,800 54 -17,8 18,050 101 13,900 44 -13,7 11,780 114 38,400 21 -6,3 United States Japan People`s Rep. of China Germany France Russia India Norway Lithuania Latvia Estonia Iceland GDP Rank GDP per Rank GDP (millions capita real growth of USD) (USD) rate (%)‏ Contry Ieva Bruksle

INFLATION RATE – consumer price (%) 4,2 43 -0,70 9 1,8 13 -1,30 3 6,0 73 -0,80 7 2,8 22 0,00 18 1,0 8 0,10 20 13,9 155 11,90 100 7,8 98 9,80 93 3,6 30 2,30 43 11,0 129 4,70 64 10,5 124 3,30 52 10,4 123 -0,40 13 13,4 152 12,00 101 United States Japan People`s Rep. of China Germany France Russia India Norway Lithuania Latvia Estonia Iceland Inflation Rank Inflation Rank 2008 2009 Contry Ieva Bruksle

Latvian price dynamic Ieva Bruksle

Weages and price Ieva Bruksle

Conclusions The Latvian economy appeared recession - changes in the price level increase indicating a lower tendency Prices can not be considered unrelated to other indicators, as there is observed close dynamics Prices can be affected directly and indirectly Ieva Bruksle