Final answer:
Jorge observes a change in the economic environment, as his competitor's price cuts and lowered financing costs affect his ability to secure contracts. This underscores the importance of understanding the financial aspects and competitive dynamics within the marketplace.
Step-by-step explanation:
Jorge is observing a change in his economic environment. When a competitor undercuts prices and offers lower financing costs, it influences the competitive landscape within the marketplace. These tactics can lead to changes in consumer behavior and the overall dynamics of the market, demonstrating economic forces at play. Factors such as supply and demand, pricing strategies, and cost of capital are integral to the economic environment in which businesses operate.
In this scenario, Jorge's situation does not primarily involve changes in technology, societal norms, or legal frameworks, but rather focuses on the financial aspects that affect his ability to secure contracts in comparison to his competition. Increased competition and changing economic strategies are typical elements that companies must