Over the years, under the influence of economic theories formed trade relations.In today's world dominated by the idea of freedom of speech and action, which does not infringe the rights of others.This principle creates the signs of a market economy.Previously, in many countries it was a command-administrative system in which trade was tightly controlled, but it has not passed the test of time and has undergone a fundamental change.
The main features of the market economy
Today, the market economy exists in many countries.Its main feature is the number of self-produced goods to the buyer's request.The freedom provided by the manufacturers of the presence of private property, namely, the legal framework, which allows the presence of finance for start-up capital to engage in any activity available.At the same time customers can purchase goods and services within their funds, thereby satisfying their needs.In a free market environment, entrepreneurs are interested in the qualitative result of its
pricing in a market economy
Signs of a market economy has always manifested in the formation of prices, which is influenced by the interaction of factorssupply and demand.At the same time it performs the following functions:
- income distribution, affecting purchasing power.
- Balancing supply and demand indicators.
- governed by the terms of entrepreneurial activity.
- informs both the buyer and the seller's market, which is primarily manifested through deficit or surplus goods.
- Provides income entrepreneurs that encourages them to productive activities.
All of these functions are shown in the turnover of natural resources, which are transformed into products for consumers.The most important feature of the market economy is the freedom in production and consumption, which provides a mutually beneficial terms and creates a favorable environment for the realization of the interests of each individual.