The concept of the market. Its structure and types
The development of commodity production has becomeprerequisite for the emergence of market relations. So there was a concept of the market. This object of economic relations began to develop rapidly. Not only products that have emerged as a result of labor are realized. The market includes land, forests and other objects created by natural means. Let us consider in more detail the concept of the market.
This is a system of relations that have an economicessence, which is formed as a result of production, movement, sale of goods, cash and other types of values. Market ties are completely based on the principles of buying and selling.
Initially, markets arose in places of mass sale of goods. Gradually, at these points, cities and large shopping centers were formed.
Sellers and buyers are the subjects of the market. It can be individuals, businesses, firms and even states. Some of the subjects perform the functions of the seller and the buyer simultaneously. This is the established chain of relationships, which is the basis for buying and selling.
As objects of the market are money andgoods. The product can have different shapes. This is the product that is the result of labor, as well as the factors of production (capital, labor, land, etc.). The role of money fulfills all possible financial means. But the most common equivalent is money itself.
The objects of market trade are different. Here distinguish the labor market, capital and goods and services.
The labor market presents a set of vacanciesjobs and applicants for these positions. The modern concept of the market is somewhat different from the original one. Today, thanks to technical progress, trade can be carried out virtually by computer.
The concept of the financial market includes turnovercapital, money in any form. For more effective implementation of economic activity of any state, a developed structure of this category of market relations is necessary. The most important part of it is the foreign exchange market. He also sells precious metals and stones.
The concept of the currency market includes the entire scoperelations in the sphere of the market, which is connected with the circulation of foreign currency or any securities in this equivalent. Also included are investments in foreign exchange capital.
At the international level, all operations are performed with any global currency.
Markets are divided depending on the specialization. It is a form of division of labor, which depends on the sphere or industry of production.
The concept of the market arose for several reasons. First, in connection with the limited possibilities of man. That is, there is a shortage of resources. A person can produce only a certain amount of goods, so there is a need to buy other types of goods or exchange them for existing products.
Another reason for the need for the market is the economic individuality of the producers. Everyone decides and chooses what kind of goods to produce, and in what quantities.
The main function that the market performs is the regulation of the level of demand and supply, as well as the formation of a price level.
Under its influence, there is a need to introduce new technical developments, in order to reduce costs and improve product quality.
The market is a source of information for participants in this process.
In addition, he acts as an intermediary between buyers and sellers who are eligible to choose a partner.
As a result of market selection, only those participants who have more opportunities and prospects survive.
The market allows to avoid problems with shortage of goods and services.