functioning of the market mechanism is a serious system deserves special attention.Indeed, precisely because the market there is an interaction of economic agents and the organized movement of capital not only within the country but also abroad.The market can solve the main issue faced by any company: how and to whom to realize the manufactured products.
functioning of the market mechanism is based on the established norms and rules of conduct.Any transaction carried out on it must be subject to the applicable laws of the state, but it should be possible to meet the needs of both sides.The main element of each market is the supply and demand for a product or service, as well as the level of prices.Under the price it is understood that amount of money you want to pay for the proposed product.The level of demand shows the degree of interest of the consumer groups in a particular product and the ability to purchase it.A bid is the amount of goods that manufacturers have to offer, on the basis of the market situation and opportunities of the economic entity.
Thus, the functioning of the market mechanism regulates these elements and brings them back into balance.The level of supply and demand should be in balance, as the disharmony of these parameters can lead to serious economic downturns.For example, if enterprise release more finished product than for any reason the user can purchase, there is a problem of lack of funds to initiate the subsequent production cycle, moreover, significantly decreases the actual profit as compared to routine.The entrepreneur has to expand the cost of rent warehouse space, because it is necessary somewhere to store unsold goods.And if the customer needs exceed the capacity of enterprises for the production of products, the prices on the market will increase, which may lead to an increase in the cost of other goods and services.
Another important element, which includes the operation of the market mechanism is the competition for consumer group between producers peers.Moderate competition has a positive effect on the quality of goods and services, as well as a tool for limiting the unlimited growth of prices.
to population one of the most important type of market is the one on which the assessment of the demand and supply of manpower in the country.The mechanism of functioning of the labor market is a little different from everyone else.This is explained by the fact that it is carried out assessment and management of real people rather than material goods.That is why professionals have to take into account the psychological, social, religious and many other aspects.
labor market designed to connect employers and labor, that is, it is a tool to meet the needs of entrepreneurs in additional manpower and helps professionals to find a job according to their qualifications and experience.As such acts labor exchange market, as well as agencies that perform transactions on search and recruitment.In this case the customer is an entity, which creates demand.
Features of the labor market determine the relationships formed on it.Since commodities are essentially human capacity and skills necessary to competently develop the motivation and ways of increasing labor activity.This is considered to be a great assistant to an element of the market, as the competition.The rivalry between the specialists of the same level for the right to win a particular position promotes personal growth of the participants of the market, obtaining additional knowledge in a particular area, to increase skill levels.
