characteristic feature defining the market - is it a spontaneous order.This phenomenon can give the following brief definition.Market - is a means of interaction between producers and consumers, based on the Withdrawal of pricing mechanism.The market linkages come all the participants of economic relations.That entrepreneurs and workers who are selling their own work, and organizations and individuals, loans, securities and owning t. D. Usually there are three groups of participants in the market economy: the government, employers (business) and households.
government budget are numerous organizations operating with a view to regulating the economy;- Business enterprises working to generate income;and households - owners.
basic conditions for the emergence of the market - it is the social division of labor and specialization.The first category means that no one can support themselves fully all the benefits of the economy and production resources.Each type of business has its own group of producers.This is the specialization in manufacturing and providing various services and benefits.Determined by its ability to produce more services to alternative, lower cost.This is called the principle of economic theory of comparative advantage is in its basic concept.
market and conditions for its occurrence are also dependent on the economic independence of its participants.Based on the social division of labor and specialization, goods and services are provided and completely distinct manufacturers.They are free to decide what products to do, which way to produce it themselves find outlets for their goods.Such economic independence may be fully realized under the current regime of private property.
After the emergence of the market of any goods is impossible without the existence of such a set of social norms, which defines the rights of participants in economic relations.For example, if the owner of the land is not sure that he can not at any time or to select it, or earned income, will he grow wheat in order to subsequently make an exchange?If there will be pressure, it will be a completely different form of economic relations, the conditions for the emergence of the market at the same time destroyed.After all, he can only exist for those products, which you can install, implement and transfer of ownership.
is important and size of transaction costs.Without such conditions for the emergence of a commodity market is impossible to imagine modern economic relations.For example, someone decided to own homemade bread oven in order to implement it in different points of the city.However, if he does not will calculate in advance how much money will be spent on obtaining permission from the city authorities to sell the conclusion of sanitary-epidemiological station, payments to racketeers, the flow rate may eventually exceed the revenue, and the market of bread and will not shape.Thus, the limits and conditions determined by the activity of the market transaction costs.
Finally, the market economy is impossible without such conditions for the emergence of the market, the exchange of resources on free basis.Specialization, exchange and social division of labor can be represented in a hierarchical system, where the center will be supplied to specify who make products, what exactly to whom and on what terms its share.Yet free prices can be formed only with the existence of free exchange.And the price will indicate the participants in the economic process, in which direction should go their activities.
