What is the market function of the market. The concept of "market" and its main functions. Market structure and concept. Free market features and functions

The market has a huge impact on all aspects of economic life, performing a number of economic functions.

The most important function of the market is regulatory. In market regulation, the ratio of supply and demand is of great importance, affecting prices. A rising price is a signal to expand production, a falling price is a signal to reduce. In modern conditions, the economy is controlled not only by the "invisible hand", about which A. Smith wrote, but also by state levers. However, the regulatory role of the market continues to persist, largely determining the balance of the economy. The market acts as a regulator of production, demand and supply. Through the mechanism of the law of value, demand and supply, he establishes the necessary reproductive proportions in the economy.

The market has a stimulating function. By means of prices, it stimulates the introduction into production of the achievements of scientific and technological progress, reducing the cost of manufacturing products and improving their quality, expanding the range of goods and services.

The next function of the market is informational. The market is a rich source of information, knowledge, and information required by business entities. It provides, in particular, information on the quantity, range and quality of those goods and services that are supplied to it. The availability of information allows each firm to compare its own production with changing market conditions.

The intermediary function of the market is that in a normal market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier of products. At the same time, the seller is given the opportunity to choose the most suitable buyer.

The market performs a sanitizing function. It cleans social production of economically weak, unviable economic units and, conversely, encourages the development of efficient, entrepreneurial, promising firms.

The market also makes it possible to solve problems of living standards, structure and production efficiency.

The market allows the use of universal human values. The market itself is the property of world civilization. It demonstrates its capabilities in developed countries, in developing countries, and regardless of national, ideological and other characteristics.

The market mechanism frees the economy from a shortage of goods and services. Both in theory and in practice, the market economy is predominantly deficit-free within the resources (including imports) that the country has at its disposal. The scarcity runs counter to the economic interests of market participants. Discrepancies between the appearance of a need and its satisfaction are possible. They are due to the scientific and technological potential available in society, the availability of resources, and are temporary.

On the market, the value is realized and the goods are brought to the consumer. The market serves as a link between production and consumption.

The market affects all phases of reproduction - production, distribution, exchange and consumption. In this sense, the market is a self-regulating system of reproduction, all links of which are under the constant influence of supply and demand.

The market differentiates producers through the social function. It provides the state with the best opportunities to achieve social justice in the national economy, which could not be achieved in conditions of total state control.

The main principles of the functioning of a market economy are:

freedom of economic, economic, entrepreneurial activity of an individual, social group;

the primacy of the consumer: a special kind of responsibility to the consumer appears, and the consumer dictates his will, desires, taste to the manufacturer;

market pricing: the price in the market is formed as a result of bargaining between the seller and the buyer, the interaction of supply and demand;

contractual relationship;

competition;

state regulation of the market and market relations. The market regulation instruments are government programs, taxation, financial and credit and banking systems;

openness of the economy: business organizations and entrepreneurs have the right to carry out foreign economic operations subject to certain conditions and restrictions;

ensuring social protection of the population.

The market includes elements directly related to production support, as well as elements of material and monetary circulation. It is associated with both production and spiritual spheres. Accordingly, the market has a diverse structure.

Market structure is the main character traits market, which include: the number and size of firms, the degree of similarity or difference between products of different firms, ease of entry and exit from a particular market, the availability of market information.

According to the objects of exchange, the market for goods, the market for services, the capital market, the securities market, the labor market, the foreign exchange market, the market for information and scientific technical developments.

In a spatial context, a local (local) market is distinguished, which is limited to one or several regions of the country; a national market that covers the entire national territory; world market covering all countries of the world.

According to the mechanism of functioning, they distinguish free (regulated on the basis of free competition of independent producers); monopolized (the conditions of production and circulation are determined by a group of monopolies, between which monopolistic competition persists); adjustable ( important role belongs to the state, which uses economic instruments of influence) markets.

Sometimes a planned-regulated market is also distinguished. Here the plan plays a leading role in ensuring the main proportions of production and circulation; there is a centralized regulation of pricing, financial, credit and money circulation.

In accordance with the current legislation of a particular country, legal, or official, and illegal, shadow markets are distinguished. market pricing sales competition

According to the degree of saturation, equilibrium is distinguished (supply and demand are approximately the same); scarce (demand exceeds supply); excess (supply exceeds demand) markets.

The market structure is a set of individual local markets within the boundaries of the country's national economy (internal market), as well as national markets within the world economy and its individual regions, their relationship and interaction between them.

Depending on the degree of monopolization, a distinction is made between monopolized and oligopolistic markets. In a monopolized market, one or two producers (sellers) can concentrate in their hands the entire mass of manufactured products, the entire totality of a certain type of goods, and dictate prices in the market. In a non-monopolized market, there are many sellers, each of whom is not individually able to influence the pricing process. In an oligopolistic market, several sellers of certain goods or services can agree among themselves (in writing or orally) on the division of market segments and influence on the price level, that is, to exercise a group monopoly.

The common feature of monopolized and regulated markets is their highly organized nature. The difference between these types of markets lies in the fact that the first one covers completely the monopolized sector of the economy and only partially - the non-monopolized one, and the regulated one covers the entire economy in the unity of all its sectors, including the state one, although each of them is to a different extent. Finally, the goal of regulating a monopolized market is to appropriate monopoly high profits, and the goal of state regulation is to stabilize the economic system, harmonize private, collective and public interests, solve national problems, and facilitate the process of capital accumulation.

Between different types markets, their subjects establish complex direct and indirect connections, which are regulated by the economic laws of the development and functioning of the modern market.

The financial market is a certain set of economic relations regarding the purchase and sale of free cash and their transformation into money capital. The financial market directs the movement of other forms of capital into a single channel. Money is the most mobile and liquid form of wealth, and securities are its main form. The financial and, above all, the money market, to the greatest extent meets the requirements of perfect competition, which is due to the homogeneity of the goods, the availability of information about it.

Among the securities are stocks, bonds (enterprises and government loans) and mortgage bonds; coupons to bonds, promissory notes, checks, certificates of deposit, etc. The subjects of relations developing in the financial market are enterprises of various forms of ownership, households, commercial banks, financial institutions, the state, etc. The objects of the financial market are personal savings of the population, temporarily free funds formed in the process of circulation of industrial and commercial capital, etc. The main elements of this market are demand, supply of loan capital and its price.

The main sellers of capital are insurance companies life insurance and pension funds, which stably accumulate cash receipts from the population of a long-term nature. Commercial banks do not have such stability, since their deposits are formed from liquid funds enterprises and personal savings of the population, and part of this money should remain in the bank reserve for the current service of these same entities. Distinguish between short-term (money market) and long-term (capital market) financial markets. Long-term loans and securities operate in the capital market, therefore the long-term financial market is divided into the long-term loan market and the securities market.

Most of the short and long term loans are provided by commercial banks. In the financial market, the levels of credit interest for different categories of borrowers are often differentiated. So, large companiesas a rule, they receive a loan for a long term, without collateral and at a lower interest rate than small firms, from which a collateral, surety or guarantee is required. The state has a significant impact on the development and functioning of the financial market through the mechanism of the credit policy. In particular, the state influences the value of the discount rate, the ratio of supply and demand, acts as a lender and borrower, establishes general rules the functioning and development of this market, carries out over it operational control and etc.

The labor market is a set of economic relations between employees (employed and unemployed), on the one hand, and entrepreneurs, as well as labor exchanges (as state, municipal and corporate intermediaries), on the other hand, regarding the purchase and sale and use of labor ...

Along with the labor market, there is a market labor resources, where the object of purchase and sale is the labor force of the economically active population and graduates of higher, secondary specialized and other educational institutions, as well as a part of the population employed in the household.

The main elements (levers) of the labor market are demand, supply and wages. The demand for labor from an individual, collective (joint-stock type enterprise) employer or the state depends on the demand for goods and services that are manufactured at enterprises of the corresponding type, the level of technical equipment of these enterprises, the intensity and productivity of labor, forms and methods of organizing production, economic conjuncture, the degree of liberalization of the country's foreign economic activity (in particular, the possibility of penetrating the national market for products foreign companies), the quality of labor and labor, the amount of investment, the technical structure of capital, etc. The supply of labor depends on the birth rate of the population, the duration of education and qualifications, the demographic policy of the state, the state of the housing market, the prestige of labor and other factors.

Deficit, equilibrium and surplus labor markets are formed depending on the ratio of supply and demand. A typical situation in the labor market in the developed countries of the world is the excess of labor supply over its demand in the presence of a deficit for certain professions. In this case, wages deviate downward from the value of the commodity, labor, and vice versa.

Within the limits of the national labor market, its separate segment markets or submarkets are distinguished: for example, the labor market in advanced knowledge-intensive industries and in old, traditional industries; labor market in the spheres of material and non-material production, etc. Each of them, in turn, is divided into a labor market for skilled, low-skilled and unskilled workers with a corresponding differentiation of jobs and specialties. There are also markets for predominantly physical (workers), mental (employees) and creative labor (intelligentsia). In the conditions of scientific and technological revolution, there is a reduction in the first and expansion of the last two types of markets.

The main conditions for the formation of the labor market are the creation of stable and effective incentives to work, an effective system of professional reorientation, training and retraining of personnel, the formation of a housing market, the intensive development of small business, etc.

The demand in the capital market depends, first of all, on the amount of interest, or the efficiency of investing money in securities. With an increase in interest, demand for means of production and investment in expanding production decrease, and vice versa. In the market for means of production, markets for means and objects of labor are distinguished. The first is divided into markets for new and used equipment, as well as specific equipment that is manufactured according to individual orders.Western economic literature argues that not only labor is productive, but also production assets (capital goods), since with their help it is possible get more products, or increase income. Consumer goods market. The constituent elements of this market are the production of durable goods (TVs, refrigerators, cars, video equipment, washing machines, etc.) and current consumption.

The service market is a certain set of economic relations regarding the provision, consumption and sale of services. A service is a special use value that satisfies specific needs of people. A feature of services as specific goods is that their usefulness is embodied not in things, but in activities, therefore, the consumption of services coincides with the process of their creation, and provision, they cannot be accumulated, transported, etc.

Distinguish between traditional (transport, communication, insurance, tourism, services of a teacher, lawyer, doctor, cultural services, etc.) and non-traditional (marketing, engineering consulting and engineering construction, recreational, advertising, information, etc.) services ... In addition, they distinguish between material (transport, trade, etc.) and non-material (education, health care, etc.) services. In the developed countries of the world, about 70% of the working-age population is employed in the service sector. This indicates the existence of a developed market for services that are created both in the sphere of material production (public catering, trade, everyday life, etc.) and in the sphere of non-material production (education, health care, art, culture, etc.).

In countries with a socially oriented economy, a person turns into the main element of national wealth, and the reproduction of his physical capabilities, intellectual, organizational skills, the basic qualities of an employee, entrepreneur and owner becomes one of the priority tasks of the development of society. This means that relations regarding the reproduction of an economically active object of a new type come to the fore. Accordingly, the service market is becoming the dominant type of market.

The foreign exchange market is an important sphere of economic relations regarding the sale and purchase of foreign currencies and payment documents (checks, bills of exchange, letters of credit) in foreign currency. There are two types of transactions: spot - immediate delivery of currency and forward - delivery of currency at a certain time, usually in a month at the rate agreed upon at the time of agreement. In some countries, along with the official foreign exchange market, there is a parallel market in which exchange rates deviate from official rates. There are also "shadow" foreign exchange markets, where the exchange rate is determined depending on the supply and demand of currencies.

The information market is a set of economic relations regarding the provision of information services; collection, processing, systematization of information and its purchase and sale end consumer... It is closely related to the development of scientific and technological revolution, in particular, its second stage, when a new element of productive forces was formed - information. The correctness of the decision depends on the quality, volume and modernity of information. Address information is a rare blessing that requires some expense. Between the producer and the consumer in the information market there are intermediaries whose main task is to collect and sell information. They charge a commission for this type of service. An important element of the information market is information about competitors. The collection, processing and transmission of such information in some Western countries is called the information and statistical base for increasing competitiveness.

The gold market is a set of economic relations regarding the organization of the purchase and sale of gold. It is carried out by regional consortia of local banks (banking houses) and specialized firms that purify metal, produce ingots, stamp and store them. Gold sellers are gold-mining countries, owners of private and public gold reserves. Buyers of this product - industrial companieswho use gold for industrial purposes, jewelers, investors, speculators. The largest amount of gold is sold for industrial use.

"Market infrastructure

Market Is a certain form of economic ties between manufacturers and consumers in the field exchangecarried out through purchase and sale of goods;

- this is set of economic relations of production and exchange of goods with help of money;

it exchangeorganized by according to the laws of commodity production and appeal;

it customer interaction mechanism and sellers or demand relations and offers.

Market objects there is a huge variety depending on the purpose and classification: goods, services, benefits, labor, financial, investment, intellectual resources or human capital resources, innovative goods, scientific and technical inventions, and so on.

Subjects of market relations participants in market transactions act. These include: firstly, buyers, sellers, entrepreneurs or individuals, and, secondly, legal entities in the form of enterprises, associations, organizations, associations, firms, joint stock companies, partnerships and the state. For classification subjects of market relations use different approaches:

1.C positions of the functions of subjects of market relations performed on the marketdivided into sellersand buyers.

2.C positions of forms of ownershipdistinguish: entities operating on the basis of individual, private and other forms of ownership, that is, as many forms, types and their varieties exist in the economy, there will be as many subjects.

3. Other categories: entrepreneurs, workers selling their labor services, service providers - those who provide various services to the population, individuals and legal entities, owners of loan capital and other financial assets, including money, loans and securities, as a rule, these are various banking institutions as well as households, firms and the state.

The market how certain institutions have their own function:

1. Connecting function. Rynoto provide production interconnection and consumption. Market challengeis exactly what it is about connecting owners of goods (producers, sellers, service providers) and owners of money (consumers, buyers) generally exchange of goods, services, benefits, in which, under certain conditions, they are willing to voluntarily commit deed of sale... This function is called in some sources intermediary.Then market ties together buyers (bearers of demand) and sellers (suppliers of goods and service providers). Wherein consumer It has choice optimal product supplier or services, and seller It has choice most suitable buyer.

2. Distribution function. The market mediates (mediated - this means, given not directly, but through the medium of something else, expressed in something through something else) social division of labor between economically isolated manufacturers material goods and services. Market defines necessity and profitability (utility) this or that products, and consequently, technological connection between participants social production. Market exchange serves a way to implement the economic interests of sellersand buyers... This relationship is built on principle of personal material interestwhich suggests exchange usefulness necessary to each other and equivalence of a market transaction.

3. Regulating function... The main market regulation tool is an demand ratio and offersaffecting prices... Through mechanism of laws of demand and offers market establishes the necessary reproductive proportions in the economy.

4. Information function. Market represents a source of information, knowledge, information required business entities on the quantity, quality, range of goods and services, as well as the areas of their distribution.

5. Stimulating function... Through market prices stimulates the introduction of the achievements of scientific and technological progress into production, reducing the cost of manufacturing products, improving its quality, expanding the range.

6.Sanitizing function. Market frees social production from economically weak economic entities and encourages the development of efficient, entrepreneurial and promising firms.

7. Social function... It appears in differentiation of manufacturers... The state market provides the best opportunities for achieving social justice in the national economy.

Market ties together buyers and sellers individual goods and services, and performs more two functions: Firstly, notifies consumers, manufacturers and resource providers about solutions, accepted by each of them; Secondly, synchronizes these decisions and provides alignment of production goalsto perform the set functions.

Market economy creates appropriate market structuresthrough which the movement of material, labor and monetary resources is carried out: commodity market (consumer goods and means of production) and services, market financial capital , labor market, scientific and technological development market and other conditions.

If we consider the concept “ market", Acting as a unifying institute here, as the totality of its varieties, then we can distinguish its different kinds according to certain classification signs:

1. On a territorial basis can be distinguished local, regional, national and world markets.

Local market - this is marketcovering an area within a city, a rural settlement, for example, a shopping area in medieval cities, mini-markets in modern cities of our country.

National market – marketwhich is internal to a particular country.

Regional market - a market that covers the territory of a certain region.

World market – marketrepresenting set of national markets of individual countriesconnected with each other stable trade and economic relations... Its formation is associated with development world trade, which originated in ancient times. Formation world market historically preceded by a long period of development regional international markets... Its origin refers to manufacturing stage of capitalism development (XVI-XVII centuries), in period of initial capital accumulation... Later, at the turn of the XIX-XX centuries, with the development large machine industryat which production goods grew into national markets, there was a union local markets for international exchange into a single world market... Development world market - a natural process that expresses the industrial development of the economy and the growing international division of labor, specialization and cooperation, internationalization of economic life, production development, foreign trade and transport.

2. By subjects, exchange, there are markets:

and) consumers – individuals, householdswho buy goods for personal final consumption;

b) producers – physical and legal entities, and state as a subject of economic relationswho purchase goods and services for further production or use for specific purposes;

in) intermediate sellers - intermediaries who purchase goods for the purpose of subsequent resale in wholesale and retail trade;

d) government agencies - legal entitieswho purchase social and military goods for the needs of the state.

For individuals markets are retail, serve for the purchase of single goods or small lots, and for legal entities – wholesaleselling by lots of goods.

3. By objects of exchange markets are commodity, financial, labor markets, services, real estate, intellectual property other. Characteristics of the main types of the market by objects of market relations is presented in question 4 of this topic. The types of markets indicated by this classification feature are combined into the following groups: factor markets, markets for goods and services, financial markets and other groups. The named groups include smaller formations. Part factor markets include: markets for land and real estate, tools of labor, raw materials and materials, energy resources, minerals, labor market. Commodity markets share to specializedwhere they sell monotonous goods, for example, the automobile market, the market for petroleum products, and universal, which are placed consumer goods, means of production. TO service market include a variety of services: utilities and consumer services, cultural, social, insurance and other types of services. Financial markets - this is capital markets (investment), credit marketswhere temporarily free cashused for production and intermediary purposes, stocks and bods market and currency and money markets.

4. By market competition distinguish pure competition market, pure monopoly market, market of monopolistic competition and oligopolistic competition market. Characteristics of models of these types of markets by types of competition presented in question 5 of this topic.

5. By forms of management distinguish state market, cooperative market, individual goods market labor activity , rental market, joint venture market and possibly other varieties.

6. Taking into account the assortment of goods allocate:

- closed market - this is marketwhich presents products from one manufacturer, in fact, it is monopoly market;

- saturated market - this is marketwhich presents similar products from many manufacturers, differentiated product market;

- mixed market - this is marketwhich presents various products not related to each other.

7. By the degree of compliance with the rule of law distinguish legal market or officialand illegal market – shadow economy market.

8. By saturation allocate:

- equilibrium market - this is market, wherein demand and sentence about match;

- scarce market - this is market, on which demand exceeds supply;

- excess market - this is market, on which supply exceeds demand.

9. According to the degree of development of the economic freedoms of the seller and the buyer in the market, markets are divided into free market and regulated market.

Free market – this is the marketpossessing maximum economic freedom in their classical sense. Subjects such market can choose a suitable product, seller and buyer, manage money at their own discretion. They own the so-called economic sovereignty... Such a market is free of state intervention and strictly regulation.

Regulated market - this is market, subject to a certain order, which is enshrined in legal norms and supported by the state.

In modern conditions, widespread spot and derivatives markets. Spot market Is a variety marketon which trade in real goods with immediate delivery. Derivatives market – derivatives market, which provide for the delivery of goods on time on agreed terms, is carried out in the form forefard, futures and optional contracts.

Types and types of markets not isolated, but inextricably linked and exist as unified market system, all elements of which are in certain relationships with each other.

Introduction

I. Commodity production - the basis of the market. Conditions of its origin and main features …………………………………………………………… .4

II. Market concept. Main Market Functions ………………… ..7

III. The modern economy is a system of markets. Market economy infrastructure …………………………………………… .11

IV. Conditions for the normal functioning of the market …………… ..13

V. Specificity of Russia in the Transition to a Market Economy …… .14

Conclusion

List of references

Introduction

The deepest engine of the entire history of mankind is the production of material goods. Society can exist and develop only through continuous renewal and repetition production processes... Therefore, the economy is the foundation of any society. Humanity has always lived in economy, and only on this basis could politics, religion, science, art exist.

Any society is faced with three main and interrelated problems of the economy: what to produce? How to produce? and for whom to produce? The solution to these problems is due to the fact that the material needs of society are unlimited, and on the other hand, economic resources, i.e. funds for the production of products are limited. Under these conditions, society achieves the greatest satisfaction of needs with an economical use of resources.

Economic theory is a science that studies the activities of people in the process of production, distribution, exchange and consumption of economic goods in conditions of alternative goals and opportunities for using rare resources. That is why the search for ways of the most effective use rare resources, i.e. in such a way that the maximum desired results will be obtained at the lowest cost.

One of the basic categories of economic theory is the market. The market is a multifunctional concept, it is multifaceted, multifaceted. The market is closely related to such categories of economic theory as production, distribution, exchange and consumption. Often the concept of "market" is used as everyone knows and does not require any explanation. In fact, it has many different interpretations both in our country and abroad, which served as the basis for the assertion that until now no one knows what the market is.

I Commodity production is the basis of the market. Conditions of its origin and main features.

The market is an indispensable component of commodity production. There is no market without commodity production, and vice versa. Commodity production means that a product is not created for the producer himself, but for exchange.

Commercial production has undergone a long evolution. It arose under the conditions of the decomposition of the primitive community, the emergence of private property, during the first social division of labor.) It is known that the simplest form division of labor is a natural division according to gender and age. The very first social division of labor is associated with the separation of cattle breeding from agriculture. - This is a division of labor in which first different communities, and then individual members of the communities began to engage in different kinds economic activity, which led to the emergence of a surplus of individual products from producers as a result of an increase in their labor productivity and to a significant development of exchange.

The social division of labor is the first necessary condition for the emergence of commodity production. With the development of the social division of labor, there is a specialization of producers in the development of any one product. This necessitates the exchange. The social division of labor is a material condition for the existence of a commodity economy.

The reason for commodity production should be considered the economic separation of commodity producers as different owners. It is precisely the economic isolation of commodity producers that is a necessary and sufficient condition for the transformation of exchange into commodity exchange. Only exchange between different owners becomes commodity. Economic isolation is possible in the conditions of both private and collective, group, corporate property.

Consequently, commodity production should be understood as such an organization of a social economy when products are produced by separate, isolated producers, each of them specializing in the production of one particular product, so that the purchase and sale of products on the market is necessary to satisfy social needs.

This understanding of commodity production defines its essence as the production of products for the market, for exchange, but at the same time indicates the conditions for its emergence.

Depending on the degree of development of these conditions, the content of commodity production also changes.

Initially, it arises and functions as a simple or undeveloped commodity production, the essential features of which are:

1) social division of labor as a material condition for the existence of commodity production;

2) private ownership of the means of production and the results of labor;

3) the owner's personal labor for the means of production;

4) meeting social needs through. purchase and sale of labor products;

5) economic connection between people through the market.

Thus, simple commodity production is the production of products for exchange by independent small commodity producers - peasants and artisans,

The study of simple commodity production is of great theoretical and practical importance, since it is a breeding ground for the emergence of developed commodity production. In addition, it is still widespread today, for 55% of the world's population are small producers, and in Latin America and Africa, up to 90%.

Developed capitalist commodity production is usually distinguished from simple commodity production.

Despite the fact that commodity production is fundamentally the same type with developed (capitalist) commodity production (because both are based on the social division of labor, private property, and the production of products for the market), they have significant differences. Simple commodity production is based on the commodity producer's own labor, the product of labor from the moment of its production to its sale on the market belongs to the commodity producer. Developed capitalist commodity production is based on the use of hired labor, and the product produced is alienated from the producer (produced by the worker, but belongs to the capitalist).

The commodity economy under capitalism attains its highest development. Commodity relations are universal, which is reflected in the fact that:

1) all products of labor are produced only for the market;

2) society satisfies all needs through the market;

3) a new product appears on the market - labor. For the transformation of labor power into a commodity, two conditions are necessary: \u200b\u200bthat the worker is legally free, can independently dispose of his ability to work, and that he is deprived of own funds production and forced to sell their labor.

The achievement by commodity production of its highest stage of development is associated with the establishment of capitalism in the process of the initial accumulation of capital.

Primary accumulation is nothing more than the historical process of the separation of the producer from the means of production. It seems to be "original", as it forms the prehistory of capital and the corresponding form of management.

Initial capital formation involves two processes:

1) the transformation of the mass of producers into personally free, but at the same time deprived of any means of production. This process means the appearance on the market of a new product - labor;

2) concentration of money wealth and means of production in the hands of a minority.

The separation of producers from the means of production proceeded very slowly, and in itself this process did not yet constitute the era of the initial accumulation of capital and the transition of commodity production to a new quality.

The accelerator of this process was the active economic role of the state, which contributed to the initial accumulation of capital by separating the direct producer from the means of production, the basis of which was the forcible dispossession of the peasantry, the "fencing" of communal lands, the confiscation of monastic and church lands in connection with the reformation of the church, the clearing of estates from residential buildings of peasants, mass expropriation of land from peasants on the basis of special economic laws.

The main methods of the initial accumulation of large sums of money: the colonial system, colonial conquests, the brutal regime of robbery, enslavement, up to theft of people in the occupied territories, the slave trade; system of government loans; tax system; system of protectionism.

The initial accumulation of capital in Russia had its own characteristics:

1) it took place under conditions of serfdom, which hindered the development of production;

2) the expropriation of small commodity producers was carried out at the expense of the colossal exploitation of the small peasantry by the small landowners, two-thirds of all the best lands remained in the ownership of the landowners;

3) a large role in the initial accumulation of capital was played by domestic trade, government bonuses, subsidies.

The evolution of the commodity (market) type of economy revealed a wide variety of varieties, which with a certain degree of simplification can be reduced to the following models: commodity economy of free competition, commodity economy of the organized market, planning-directive and planning-normative models of commodity economy.

The first model is a market economy in which there is no monopoly, private free competition, an unknown market, isolation of producers, unhindered entry into and out of the market, protection of private property, full independence and responsibility of business entities.

The second model is a market (commodity) economy of a higher level, which develops in conditions of imperfect competition, the presence different forms economic monopoly and state regulation of the economy.

The third and fourth models are a conscious commodity economy regulated on the basis of a directive plan (or planned standards) with a rigid centralized distribution of resources, ignoring the independence of enterprises and evaluating their activities based on the results of the plan. This model has been implemented in our country.

The development of the commodity economy in Russia was contradictory. Compared with classical England in this respect, Russia had significant features, and the main one was a slower change in the forms of feudal-serf relations. And yet, in terms of growth rates in the last decade of the XIX century. Russia was second only to the United States, and at the beginning of the 20th century. and was ahead of them. After the reform of 1861, a number of industries developed intensively. Thus, the "old", traditional industries - cotton, woolen - doubled their production in 15-20 years, oil production in 1861-1891. increased almost 20 times, coal - 6, steelmaking - 10, the production of machines increased 5 times. The Russian economy developed even more rapidly in the 1890s.

II Market concept. The main functions of the market.

The market is one of the most common categories in economic theory and business practice. This category has many different interpretations both in our country and abroad.

This concept also includes a sales contract; and a set of business transactions carried out in a specific area of \u200b\u200bthe economy or in a specific place; and the state and development of supply and demand in a specific area of \u200b\u200bthe economy (for example, they talk about a decline in prices in the metal market or a shortage in the labor market); and the place where demand and supply of goods, services and capital meet. All these (as well as others) definitions of the market have the right to exist, since they characterize certain aspects of this complex economic phenomenon.

The presence of a large number of definitions and interpretations of the content of the category "market" is associated with the development of social production and circulation.

Initially, the market was seen as a bazaar, retail location, market square. This is explained by the fact that the market appeared even in the period of decomposition of primitive society, when the exchange between communities becomes more or less regular, only took the form of commodity exchange, which was carried out in a certain place and at a certain time. With the development of crafts and cities, trade, market relations expand, certain places, market areas are assigned to markets.

With the deepening of the social division of labor and the development of commodity production, the concept of "market" acquires a more complex interpretation, which is reflected in the world economic literature. Thus, the French economist-mathematician O. Cournot (1801-1877) and the economist A. Marshall (1842-1924) believe that “the market is not any specific market area where items are sold and bought, but in general, any an area where buyers and sellers deal with each other so freely that prices for the same goods tend to equalize easily and quickly. ”This definition preserves the spatial characteristics of the market, and the main criterion is freedom of exchange and pricing.

With the further development of commodity exchange, the emergence of money, commodity-money relations, the possibility arises of breaking the purchase and sale in time and space, and the characteristic of the market only as a place of trade no longer reflects reality, for a new structure of social production is being formed - the sphere of circulation, which is characterized by the separation of material and labor resources, labor costs in order to perform certain specific functions for circulation. As a result, a new understanding of the market as a form of commodity and commodity-money exchange (circulation) arises. This understanding of the market is most widespread in our economic literature. The textbook "Political Economy" indicates that the market is an exchange organized according to the laws of commodity production and money circulation. The Ozhegov Explanatory Dictionary gives the meaning of the market as: 1) the sphere of commodity circulation, commodity circulation and 2) the place of retail trade in the open air or in the shopping malls, the bazaar The market can be viewed from the side of the subjects of market relations. In this case, the market is defined as a collection of buyers or any group of people who enter into close business relationships and conclude major transactions for any product. The English economist W. Jevons (1835-1882) as the main criterion for determining the market puts forward the "tightness" of the relationship between sellers and buyers. He believes that the market is any group of people entering into close business relationships and bargaining for any product. This definition of the market is characteristic of the concept of marketing. However, the complex mechanism of the market includes not only buyers, but also manufacturers and intermediaries. Moreover, the above definition of a market does not take into account the reproductive aspect of market characteristics.

With the growth of production, there is a natural need for additional labor. A person has the opportunity to "sell" his labor, skills, abilities. At this time, the labor market begins to take shape, and therefore the purchase of not only the means of production, but also labor power becomes an essential condition for the existence and development of production. The concept of "market" expands to understand it as an element of the reproduction of the aggregate social product, as a form of realization, the movement of the main components of this product. The definition of the market as a way of interaction between producers and consumers, based on a decentralized, impersonal mechanism of price signals, appears. This definition of the market as a set of specific economic relations is characteristic of Marxist methodology.

The functions of the market can be correctly understood if we consider it within the framework of a wider system. Such a system is a commodity-market economy. It consists of two relatively permanent subsystems:

1) commodity production and

These subsystems are inseparably reunited internally with the help of direct and feedback connections.

Original link common system - commercial production has a direct impact on the market in several directions:

a) in the sphere of production, useful products are constantly being created, which just as regularly become objects of market transactions;

b) simultaneously with the manufacture of goods, potential incomes of all agents of the commodity economy are created, which are subject to sale in market exchange;

c) due to the social division of labor, on which commodity production is based, the need for a market exchange of products is created.

In turn, the market has a largely decisive inverse influence on the process of creating goods. Reverse economic links constitute special market functions

The most important functions of the market include:

1) Pricing function. Products and services of one purpose that usually enter the market contain an unequal amount of material and labor costs... But the market recognizes only socially significant costs, only the buyer agrees to pay them. This is where the reflection of social value is formed. Thanks to this, a mobile connection is established between cost and price, responsive to changes in production, the needs of the market.

2) Regulatory function. This function is associated with the impact of the market on all spheres of the economy, primarily on production. The market provides answers to the questions posed so sharply by Samuelson: what to produce? For whom to produce? How to produce ?.

The market reacts rather quickly to changes in the economy, thus the market is capable of self-regulation of commodity production. If the demand for a product increases, producers will produce more, increasing the price. Saturation of the market with goods reduces demand and price. So the market contributes to the coordination of production and social needs, maintaining a balance of supply and demand.

It follows from the law of value that the market has a stimulating effect on the efficiency of production, prompting producers to create goods at the lowest cost. If the price decreases, then manufacturers are forced not only to reduce production, but also to look for ways to reduce costs (introduction of new equipment, technologies, improvement of labor organization). If the price rises, then consumers must look for additional income, which increases their labor activity.

As a result, spontaneous actions of entrepreneurs lead to the establishment of more or less optimal economic proportions. The regulating “invisible hand” of Adam Smith is at work: “The entrepreneur has in mind only his own interest, pursues his own benefit, and in this case he is guided by an invisible hand towards a goal that was not at all part of his intentions. In pursuit of his own interests, he often serves the interests of society in a more effective way than when he consciously seeks to serve them. "

In modern conditions, the economy is controlled not only by the "invisible hand", but also by state levers, but the regulating role of the market continues to persist, largely determining the balance of the national economy.

3) Information function ... The market is a rich source of information, knowledge, information necessary for all its subjects. All this diverse information is embodied primarily in prices. Operational, extensive and at the same time compact information contained in prices allows us to determine the fullness or scarcity of markets for each type of goods, the level of costs for their production, technologies and directions for their improvement.

4) Sanitizing function. With the help of competition, the market cleans social production of economically unstable, non-viable economic units, on the contrary, it gives the green light to more entrepreneurial and efficient ones, and due to this differentiation of commodity producers is carried out. As a result, the average level of stability of the entire economy as a whole is continuously increasing. According to Samuelson, in the United States, one-third to one-half of all retail stores cease operations within three years of opening. They often die in competitive struggle and large firms. In conditions of concentration of production and capital, monopolization deforms the sanitation mechanism of the market. Yet in the capitalist world, monopolization nowhere suppresses competition to the extent that natural selection ceases.

5) Intermediary function. Economically isolated producers in the conditions of a deep division of labor must find each other and exchange the results of their activities. Without a market, it is almost impossible to determine how mutually beneficial this or that technological and economic relationship between specific participants in social production is. In a normal market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier. At the same time, the seller is given the opportunity to choose the most suitable buyer.

The function of establishing the social significance of the product produced and the cost of labor. If the product is sold, then there has been public recognition - recognition of its public utility. Of course, this function is realized when the consumer is free to choose products. That is, this function can operate in conditions of deficit-free production, in the absence of a monopoly position in production; in the presence of several manufacturers and competition between them.

III ... The modern economy is a system of markets. Market economy infrastructure.

From the point of view of the maturity of market relations, we can talk about the emerging (Russia, Ukraine) and developed (USA, England, Sweden, etc.) markets. There are two developed market models: American and Swedish.

The American model is characterized by minimal state intervention in the economy, an insignificant share of the public sector, an orientation towards free enterprise and a free market, and minimal (relatively) social protection of the population,

The Swedish model is a high social security of the population, significant social expenditures of the state based on high taxes, a significant redistribution of national income through the state budget and at the same time reliance on private property and competition. It is often defined as follows: "Socialism is in distribution, capitalism is in production."

We can talk about other models (Lyons, German, etc.). Russia is developing its own model of the modern market, reflecting to the maximum extent the historical situation in which we live.

Market infrastructure is an interconnected system of institutions, organizations operating within specific markets

and performing certain functions.

In the market for goods and services, the infrastructure is represented by commodity exchanges, wholesale and retail trade enterprises, firms providing market information to participants, engaged in marketing, advertising, etc. This part. infrastructure covers a huge economic space between producers and consumers; its functioning provides marketing regulation and consumer services. This infrastructure responds to signals from demand and ensures equilibrium in the commodity market.

In the labor market, the infrastructure is labor exchanges, systems that provide training and retraining of workers. In the securities market, this is primarily a stock exchange, where stocks and bonds are bought and sold. By connecting investors and savings owners, the exchange promotes cross-industry and cross-regional capital flows.

The infrastructure of the credit market is a modern two-tier banking system (Central Bank and commercial banks), insurance companies and various funds that are able to mobilize free funds and turn them into loans.

Public finances (central and local budgets) are also part of the market infrastructure. Budgets through taxes, as well as through expenses, allow the state to solve those problems before which the market is retreating.

The next element of the infrastructure is legislation, a legal system that regulates the interaction of market participants. The absence or weak development of the legal system makes the market “wild” and makes the economy criminal.

These are the main elements of the market infrastructure. Once again, we note that the market cannot function normally without a developed infrastructure. Therefore, the countries entering the market, and therefore our country, are faced with the task of creating a market infrastructure.

IV ... Conditions for the normal functioning of the market.

For the normal functioning of the market, the following conditions are necessary:

1) the presence of independent economic entities, their competence in concluding transactions and disposing of their income. That is, the opportunity for everyone to engage in any entrepreneurial activity not prohibited by law;

2) a multi-sector economy, in other words, a variety of forms of ownership and, accordingly, types of enterprises. The basis of a market economy is private property; stock (corporate) property is of particular importance for the modern economy.

3) competition. Competition is the soul of the market. If there is competition, then there is a market. The condition for competition is the presence of at least several sellers (manufacturers), as well as several buyers;

4) free market prices, which are established in the process of competition. State regulation of prices for certain types of goods and services is allowed. Prices convey information about changes in the market situation, stimulate the use of the most economical production methods, distribute and redistribute income;

5) stable monetary and financial systems. The stability of the monetary system implies the absence of inflation (or its minimum level), and a stable financial system presupposes, first of all, the stability of taxes;

6) the presence of a developed market infrastructure (see below about it);

7) complementing a purely market mechanism government regulation economy. The only question is how to regulate, in what form and dose. It is important to note that government intervention in the economy should be minimized, it should not suppress and destroy the market;

8) the openness of the national market, its connection with the world market;

9) stability of the political situation;

10) the ability of all participants to adapt to market requirements, to comply with the "rules of the game".

V .Specificity of Russia in the transition to a market economy.

The development of the market in Russia, as elsewhere in the world, takes place under circumstances that people do not freely choose, but which were given to them and passed on from the past.

After the end of the civil war in the 1920s, market relations developed widely. But at the turn of the 20s and 30s, the market was cut down to the ground: free enterprise was prohibited and competition was completely excluded. The complete domination of state monopoly was established, which relied on direct coercion and orders.

The absolute market monopoly was expressed in two directions:

a) the state monopolized the production and sale of the bulk of goods;

b) it played the role of an all-encompassing monopsony, since it purchased the bulk of raw materials (for example, the products of collective farms).

As a result, the absolute monopoly in the sphere of commodity-money relations has become the complete opposite of a competitive market.

Our market conditions were such that its positive role in the development of the economy was practically not manifested. Hence, statements about the absence of a market follow, which does not quite correctly reflect reality, since acts of purchase and sale existed, which was recognized and recognized by individual economists of Russia and the West (for example, V. Oiken and others). Personal subsidiary farming in different years had a different degree of marketability, but without it the peasant could not exist. Thus, the market was and is, but it is seriously deformed.

The main features of the market deformation under the conditions of the administrative command system:

1) the absence of numerous market entities organizing their economic activities on the basis of different forms of ownership;

2) excessive centralization in the distribution of commodity resources and their movement, lack of independence in commercial activities);

3) an extremely high degree of nationalization of the economy, almost complete absence the legal private sector in an expanding “shadow” economy;

4) super-monopolization of production, which, under conditions of economic liberalization, led to inflation;

5) deformation of the economic interests of the subjects of market relations (for example, traders have an interest not to sell, but to hide the goods), lack of motivation for effective work;

6) an extremely distorted structure of the national economy, where the military-industrial complex played a leading role, and the role of industries oriented to the consumer market was diminished;

7) non-competitiveness of the predominant part of industries, aggravated by a protracted structural crisis in agriculture.

In the 90s, economic reforms were undertaken, which were aimed at the transition from an administrative-command system to a market system. However, the transition to a market economy has to overcome great difficulties. They are primarily due to the fact that there is a huge distance between the start - an absolute market monopoly and the finish - a developed market. To eliminate the deformation of the market, to eliminate the diseases of the market economy (unemployment, inflation, instability), it is necessary to create conditions for the transition to a market economy in Russia and its subsequent development. These conditions are:

1) the presence in the economy of free forms of ownership and diverse forms of management, as well as free competition between them, a sufficient number of producers, there must be at least 15-20 manufacturers of the same type of products;

2) ensuring freedom of economic activity, the choice of partners in economic relations, independence, the ability to freely dispose of part of their income, the absence of rigid administrative distribution of goods, i.e. free purchase and sale;

3) formation of a free pricing mechanism, the right of market entities to set prices themselves;

4) completeness and access to information on the state of the market for all business executives;

5) availability of market infrastructure, i.e. a complex of industries, systems, services, enterprises serving the market;

6) free maneuvering of resources;

7) preservation, along with the spread of market relations, of a significant non-market sector of the economy;

8) consistent integration of the national economy into the system of world economic relations

9) provision by the state of social guarantees to citizens.

The specifics of Russia's entry into the system of socially oriented market economy is determined by the following:

A relatively low level of development of productive forces in comparison with developed countries;

· The weakening of world economic ties;

· The continuing dominance of elements of the administrative-command system;

· Deeply monopolized structure of the economy and main markets;

• isolation from a person;

· The need to combine federal and republican-regional interests.

The transition to market relations is carried out extremely unevenly in various sectors of the Russian economy.

Russia is characterized by the relative maturity of the consumer goods market. Compared to the socialist time, its incomparably greater saturation, a sharp expansion of the assortment, the elimination of the problem of shortages and queues, as well as rather active competition of sellers are striking.

The disadvantages of the current state of the consumer goods market in Russia include the prevalence of imported goodsleading to economic dependence.

The investment goods market is in a difficult and contradictory position. A significant part of raw materials is exported abroad. In the context of the economic crisis, the demand for investment goods is generally low. And in the part in which it exists, the demand is directed to imported goods.

The labor market suffers from severe structural imbalances on both the demand and supply side. The restructuring of the economy requires changes in the area of \u200b\u200bemployment. Closure of mines defense enterprises etc., leads to unemployment and, at the same time, to the need for large-scale retraining of a significant part of the workforce. The lack of comprehensive information on job offers is also a serious drawback.

The real estate market (factor land) is developing: production, office and residential premises are actively sold and rented. Land plots can hardly be bought and sold yet. In this area, rent is widespread.

Until the 1998 crisis, the financial sector developed most rapidly: commercial banks, investment institutions, currency and stock exchanges, as well as corresponding economic instruments (loans, mortgages, securities - bonds, stocks). However, the economic power of commercial lending and financial institutions is still small. Lack of lending in general, inability to invest in production are the most important disadvantages of commercial banks. It was they who brought the country's banking system to the brink of complete collapse in the summer of 1998. The refusal of the state to pay its obligations (the so-called GKO) led to the virtual bankruptcy of most banks that did not have a more solid foundation for their business.

The transition to a market economy in certain regions of Russia is also uneven. This process proceeds most rapidly in Moscow, where the main banks and other financial institutions are concentrated, and private entrepreneurship is widespread. On the contrary, in remote regions and in rural areas, the formation of market relations is extremely slow.

The formation of a market economy in Russia is influenced by such factors as the propensity of a large part of the population to state parthenalism (the significant role of the state in the redistribution of the population's income) and social forms of appropriation (free education, medical care, etc.). This leads to the preservation of a significant economic role of the state in financing social needs and limiting market factors in the social sphere.

Based on a strong regulatory role of the state, the Russian model of a market economy is based on a number of long-term factors: the predominance of the extractive industries, the lack of competitiveness of the manufacturing industries (with the exception of the military-industrial complex), and the inefficiency of agriculture. These factors in modern conditions restrain the functions of the market. Therefore, the program of economic reforms should take into account these moments and reflect a certain logic and the following milestone tasks of the formation of a market economy in Russia:

1) denationalization of the economy, privatization, development of entrepreneurship;

2) formation of the market and its infrastructure;

3) demonopolization of the economy and elimination of organizational structures that have developed within the administrative-command system and hinder the development of the market;

4) gradual limitation of state control over prices;

5) implementation of a tight monetary and financial policy aimed at limiting the money supply in circulation;

6) the implementation of an active structural and investment policy, which would provide the necessary structural changes in the national economy in the direction of social reorientation.

Thus, economic reforms in Russia should be “tuned” to a person, to meet his needs, and to develop his personality.

Conclusion

1. The market is a complex and multifaceted category, the concept of which has changed with the development of social production and circulation. The main modern approaches to defining the concept of the market include the Marxist approach and the approach of the Economics school. All the definitions of the market that exist today are correct, as they characterize certain aspects of this complex economic phenomenon.

2. The market can exist only under certain conditions, which include: social division of labor and specialization; relations of exchange of labor results; free exchange of resources; economic isolation of market actors, which, in turn, can be achieved only when they are all completely independent, autonomous in making decisions about what, how and for whom to produce.

3. The essence of the market is reflected in its economic functions, which express the main purpose of this category. The main functions of the market include pricing, regulating, informational, sanitizing, intermediary functions and the function of establishing the social significance of the product produced and labor costs.

4. The market has a complex, ramified structure that covers all spheres of the economy. The division of markets into types is to a certain extent arbitrary, since in life one and the same market can reflect different characteristics. The structure of the market is constantly changing, which is associated with the development of social production and circulation.

5. The modern economic system of Russia is a transition from an administrative-command system to a market system. The market existed even under the administrative-command system of management, but it was severely deformed. To eliminate the deformation of the market, it is necessary to create certain conditions for the transition to a market economy in Russia and for its subsequent development.

List of used literature

1. Borisov E.F. Economic theory: Textbook - M .: Jurist, 2000. - 568 p.

2. Bulatov A.S. Economics: Textbook - M .: BEK, 1997. - 816 p.

3. Voitov A. G. Economy. General course (Fundamental theory of economics): Textbook - Moscow: Marketing, 1999. - 492 p.

4. Dobrynin A.I. Economic theory: Textbook for universities / Ed. A.I. Dobrynina, L.S. Tarasevich. - M .: SPB GUEF, 2000 .-- 544 p.

5. Ivankovsky S.N. Microeconomics: Textbook. - M .: Delo, 2001.- 416 p.

6. Kamaev V.D. Textbook on the basics of economic theory (economics) - M .: VLADOS, 1994. - 384 p.

7. Nosova S.S. Economic theory: Textbook. for stud. higher. study. institutions. - M .: VLADOS, 2003 .-- 520 p.

8. Ozhegov SI Explanatory dictionary of the Russian language: 80,000 words and phraseological expressions. Ozhegov, N.Yu. Shvedova. - М .: АЗЪ, 1996 .-- 928 p.

\u003e\u003e Market and its functions

2.3. Market and its functions

Let us turn to the consideration of the question of how the fundamental problems of the economy are solved under the conditions of the dominance of market mechanisms. In order to understand the nature of the market system, let us first of all clarify what should be understood by the market.

Market

Any housewife understands a market as a city bazaar. Probably, many will agree that any store, shop or supermarket is a market. However market it should be understood even more broadly: for a dentist, the market is people who have toothache; for a teacher who gives private lessons - parents of underperforming students; for a wholesaler - a commodity exchange, etc. The market system assumes that land plots, houses and other real estate, various securities (stocks, bonds, debentures), dollars, stamps and other currency... Therefore, the market is the stock exchange, that is, the financial institution where transactions in securities are made; currency exchange or currency exchange office. Transactions can be made directly between the seller and the buyer, through a brokerage firm, using computers. But in any case, direct or indirect contact should be established between the seller and the buyer.

Reasons for the emergence of a market economy

The emergence and development of the market system was due to two reasons.

1. Development of the division of labor. The division of labor involves a method of production when a group of people or an individual manufacturer performs a strictly defined type of work, specializes in the manufacture of a certain type of product or part of it.

The division of labor created the possibility and necessity of exchange, which later, when money appeared, in the sale and purchase. The exchange became possible because as a result of specialization the manufacturer had a significant surplus of products. The division of labor leads to an increase in labor productivity, which, in turn, makes it possible not only to fully satisfy the needs of the producer in the given product, which he produces, but also to create it in more quantities than is required by the producer himself.

For example, a potter for his own consumption did not need as many utensils as he could make; the excess could be sold or exchanged for other goods.

Lesson content lesson outline support frame lesson presentation accelerative methods interactive technologies Practice tasks and exercises self-test workshops, trainings, cases, quests homework discussion questions rhetorical questions from students Illustrations audio, video clips and multimedia photos, pictures, charts, tables, schemes humor, jokes, fun, comics parables, sayings, crosswords, quotes Supplements abstracts articles tips for the curious cheat sheets textbooks basic and additional vocabulary of terms others Improving textbooks and lessons bug fixes in the tutorial updating a fragment in the textbook elements of innovation in the lesson replacing outdated knowledge with new ones For teachers only perfect lessons calendar plan for the year guidelines discussion agenda Integrated lessons

Definition 1

Market is a place where sellers and buyers, intermediaries and manufacturers of products meet for the purpose of buying and selling. The exchange market sells securities, financial instruments (options, futures). The market is a combination of economic relations that are based on constant exchange transactions between buyers and producers.

Market functions

Market functions varied:

• establishing links between production and consumption;
• stimulation of production efficiency and staff motivation;
• reduction of the cost part (can be achieved only with the help of advanced and innovative technology);
• stimulation of scientific and technological progress;
• many different manufacturers;
• caring attitude of the manufacturer to the quality of the products.

Remark 1

It can be noted that the market and its factors are always fluctuating. But the market adjusts the manufacturer to release exactly those products that do not yet exist on the market. Manufacturers of various products always take risks. They calculate situations that may arise, and often they do not calculate anything. If the manufacturer is special and his products are original, then the market will react with lightning speed and positively.

No one needs low-quality products, no one will buy a spoiled product, except perhaps at a big discount. It is clear that the manufacturer will not cover the costs and profit. The market always motivates manufacturers and pushes them to update products, and often to launch new products.

depending on the role of the player in the market :

• seller's market;
• buyer's market;
• middleman market.

On the seller's market the main thing is the seller. Buyers are very active in this market. In the buyers market buyers are the main ones. It depends on them how the price of goods will be formed. AND intermediary market characterized by the presence of distributors, resellers. Distributors must understand the delivery and distribution of goods.

Economic markets are subdivided depending on the turnover of the object on the market :

1. Labor market. It consists of people who want to offer their labor force in exchange for money, the so-called wages, and on the other hand, employers who need hired labor act. For the sake of simplicity and ease, entire intermediary and consulting firms are formed around workers and employers.
2. Financial market. In this market, you can borrow money from banks for different periods of time, put money on a deposit (for temporary storage with an increase in profitability), the bank guarantees the safety of funds.
3. The market is commodity. This market is an ordinary market where buyers and sellers, intermediaries meet and exchange their products for cash.
4. Service market. In this market, not a product is sold, but a service. For example, renting a car is a service.

Exist market functions, which reflect its role in achieving the economic goals of society:

1. Regulating function very important. When regulating the market, changes in supply and demand are very important - this all affects prices. Using this function, you can determine what state the market is in: in the phase of peak, depression or growth. If the price of goods rises, then it is necessary to expand production. If the price falls, then production must be reduced. That's right, because when there are many competitors on the market, many identical products, then the price will not be able to rise high. Market prices for goods that change every day will help an entrepreneur understand in which direction to move and how much to load production lines. Consumers also see the benefits for themselves, they understand where they can buy goods cheaper.
2. Pricing function. This function comes into play when demand, supply and competition forces interact. When market forces play freely, prices add up.
3. Stimulating function. Each subject is interested in ensuring that its resources are used as efficiently as possible. Changes in prices stimulate or spur to reduce costs, to master scientific and technological progress.
4. Distribution function. Subjects receive income or payments for factors of production. Income depends on the number, factor of production and the price that is set for this factor.
5. Information function. On the market you can find a huge number of sources of information, books, knowledge that are so necessary for the subjects. The availability of information helps to identify the same competitors, to learn more about them in more detail, to come up with something else interesting to introduce in the production of new products.
6. Intermediary function. In our time, the competition is very high. Manufacturers literally come up with new products, goods and products on the go. Today, the manufacturer has the right to choose the buyer. Typically, the manufacturer sells the product to an intermediary, i.e. a distributor.
7. Sanitizing function. The market is self-cleaning from low-quality goods, from economically weak economic units. The most effective actors are encouraged and developed. Organizations and companies that fail to meet the wants and needs of consumers fail. Their losses are very high, they subsequently go bankrupt.

Picture 1.

Remark 2

It should be noted that the concepts of "market" and "market economy" are not identical. The market economy is characterized by such features as entrepreneurial freedom, freedom of choice, free pricing, and non-interference from the state.

Remark 3

In the economic literature, rarely, but such functions are singled out as: activation economic processes, increased interest in scientific and technological progress, combining the needs of buyers and production, creating conditions for labor efficiency.

All of the above listed market functions should be. This means that the role of the market in today's economy is important. The role of the market is reduced to finding the best solution to problems (what, where and how to produce), to the equilibrium of supply and demand.

The modern market has a complex market structure, covering all spheres of the economy with its influence.

 

It might be useful to read:

• How to cancel the registration of cash register with the tax office?;
• How to fire an LLC director - step by step instructions;
• How to open a children's store How to open a children's clothing boutique;
• What metal products are in demand among the population?;
• How to fire an employee for absenteeism;
• How to correctly calculate compensation for unused vacation in case of dismissal due to staff reduction?;
• DIY interior for a photo studio;
• Instructions: how to fire an employee due to death;