market - a complex system of economic ties and relations between entities that are involved in the processes of production, consumption, distribution and exchange of a variety of goods and services in the relevant market prices formed the basis of the balance of demand and supply, taking into account the competition.
Essence market
In the market there is an interaction of buyers and sellers.Between them there are agreements and contracts that are carried out various transactions with agreed terms and conditions of cooperation.Market participants are becoming business entities - from private households to the state.A significant role in such cooperation is given to intermediaries that can simultaneously also act as sellers and as buyers.
essence of the market is a mechanism of interaction between consumers who present a demand for goods, and sellers who offer this product form.Wherein the products themselves are subject to market.The concept of goods is not limited to material things.It may be services, resources, currency, securities, financial incentives, etc.
to build appropriate relationships, market participants need information on supply and demand for this product.SUMMARY market consist in the transfer of this data - usually in the form of price.Number of incoming goods and services, the amount of income buyers, the increase of their needs form the supply and demand, which ensures uninterrupted operation of the market.
In general, the nature and function of the market are as follows:
- Coordinating the needs of buyers and sellers of options, which is done by identifying the relation between supply and demand in this market segment.
- Enabling customers to choose the right products and services, and sellers - the most attractive markets.This is possible thanks to the free movement of goods, labor, capital, both within the country and between countries.
- Promote lower production costs that sellers can bid on products in the range between the market price and the cost price.
- Improvement of the state of the economy through the use of self-liquidation and bankruptcy of companies that offer substandard, too expensive or not modern goods and services.
Thus, the processes of pricing, mediation, regulation, informative and rehabilitation define the essence of the market.All these functions are performed directly by economic entities in the implementation of sales and purchases.With the economic isolation of the market, buyers and sellers can form the necessary links, thus creating diverse market structures.
There are many classifications of such structures.First of all markets can be divided into two segments: products and services.Then they are crushed into smaller pieces.Depending on the industry of goods and services it can be industrial goods, food, resource markets, etc.
There is also a division by types of use of productive resources: land markets, information, capital, labor, etc.
individual segments is also split into smaller structures.For example, in the field of information can be identified separate markets scientific and technological development, innovation and technology.And in the financial environment, there are separate markets securities (stock), currencies, etc.All of them perform their tasks and meet tight specific needs of customers.For example, the essence of the foreign exchange market is the regulation of metabolic processes, purchase and sale of currencies at different levels of interaction of economic agents.
on a territorial basis the markets can be local, intra-regional, national, international.
Depending on the availability of competition are monopolistic, oligopolistic or freely competitive markets.
As we can see, there are many classifications and methods of division into segments.The variety of markets increases in proportion to the growth of human needs and capabilities.
