What is the market as a competitive environment. The essence of the market, its functions and types

Market relations originated in antiquity. People exchanged goods, values, receiving the benefits necessary for their lives. Today, market relations have improved significantly. They are the backbone of the economy of almost any country. This ensures world technological progress.

The market in the economy is a rather capacious multifaceted concept. To understand its essence, it is necessary to consider the theory of its functioning. The presented economic category has certain features. This system works according to special rules.

General concept

Markets in the modern economy are a system of relationships between the supplier of certain services or goods and the buyer. Functioning occurs according to certain laws. Money is used in exchange.

This process is done on a voluntary basis. Exchange can be carried out not only with the help of money, but also by barter. In this case, one product is exchanged for another of equal value. If there are several buyers and sellers in the market, the exchange is carried out in a competitive environment.

The modern market is one of the most important achievements of mankind. In the process of its formation, the relationship between buyers and sellers has evolved. With its development, the processes of distribution of resources, products of human labor were improved.

History of occurrence

In the development of the economy, the market plays important role. The first such relationships arose about 6 thousand years ago. In those days, the word "market" literally meant the site on which the exchange was carried out.

Over time, the system of relationships between sellers and buyers has improved. About 3 thousand years ago, one of the first markets appeared, vaguely reminiscent of such modern times.

The invention of the market is credited to the Phoenicians. In those days, sailors began to explore new lands. The ships crossed considerable distances. Arriving on the new coast, sailors could meet local natives. Valuables could be taken from the inhabitants of the islands by force or (if this action was impossible) by exchange. Violence did not give a chance for the subsequent relationship of strangers with the natives. Therefore, beneficial contacts were established.

Further development

The role of the market in the economy is difficult to overestimate. Technological progress, the development of civilization would not have been possible without a system of trade relations. The countries of medieval Europe exchanged with the countries of the East. It was in the ancient states of Asia that a high level of handicraft and agriculture was observed.

The products of the East were vital for European countries. To deliver it by land, the merchants resorted to the help of intermediaries. This significantly increased the cost of products for the end consumer. However, without the important goods that were brought from the East, the mighty civilization of Europe could not have developed.

To avoid the help of intermediaries, searches were made for sea routes to developed handicraft and agricultural countries. The navy developed. Exchange in those days took place on silver and gold. However, later days were invented. This greatly simplifies exchange operations.

Formation of the modern market

In market conditions, the economy receives certain features for development. It is these relations that push states to develop, search for new technologies and more advanced products.

The modern market is a controlled system. It is a necessity whose principles have been perfected century after century. The relationship between the buyer and the seller is subject to ethical, legal norms. Otherwise, there would be no order in the system. Fraudsters and swindlers would not allow the market to develop harmoniously.

The system functioning all over the world today absorbs the achievements of world technologies and progress. Many markets are emerging that have specific characteristics and traits. Market laws may differ depending on various factors, requirements and habits.

Market conditions

The market today is an integral part of civilized trade relations. This system arises due to the fulfillment of a number of conditions. The market is formed when there is a division of labor. Also, the relationship between the buyer and the seller in the presented system is determined when creating separate industries. Producers must be independent.

The presented conditions were the main reasons for the emergence of the modern market. The signs of such a system are several statements. Trade relations should not be regulated. The manufacturer makes an independent decision about the quantity and characteristics of the goods that his company will produce.

Also one of the main features of the market is unregulated demand. However, the most important element in the emergence of trade relations is the price. It is influenced by the need of buyers for a particular product and the ability of the manufacturer to manufacture such products.

Market mechanism

The state market plays an important role in the economy. It is characterized by a certain mechanism. The system of interactions is built on the main elements. These include price, supply, demand and competition. The basic laws of the economy also influence the market mechanism.

The interaction of supply and demand determines the cost of goods, their diversity, and the main characteristics. It is the price that is the signal for all participants in trade relations. Receiving signals due to this economic category, market participants decide on appropriate actions. There is a movement of capital, labor resources, the movement of means of production in various sectors of the national economy.

A free (ideal) market functions independently, without various external influences. The movement of its main categories is affected only by supply and demand. Balance is maintained between them naturally. However, in real life, the existence of such a system is almost impossible. This has been proven over the years of the market of various types.

Varieties

There are many types of markets in the economy. They are classified according to certain criteria. Depending on the scale of exchange processes, local, national and world markets are distinguished. According to the economic purpose, it is possible to single out commodity, financial trading platforms. It also includes the labor market.

In accordance with the mechanism of functioning, free, monopolized and regulated systems are distinguished. Depending on the factors prevailing in the market during the exchange, it can be called equilibrium, scarce or excess.

Classification can be made in accordance with the peculiarities of the exchange on the trading floor. According to this criterion, retail, wholesale, import and export markets are distinguished.

Market Functions

The functions of the market in the economy are quite diverse. First of all, he mediates between the producer and the consumer. Marketplaces also help set prices for certain goods and services. This function is performed taking into account the ratio of supply and demand.

The market contributes to the dissemination of information among all its participants. One such activity is advertising. The system also regulates the movement of capital between industries. This allows the development of more promising industries. Regulates the balance between supply and demand.

The market performs a stimulating function. It contributes to the development of scientific and technological progress. This allows you to expand the range and improve the quality of products. Inefficient enterprises go bankrupt and are weeded out.

Market system

The market in the Russian economy consists of many trading platforms. They have a different direction of action. They deal with different goods. Depending on this, there are three main types of markets. The first of these is a marketplace where consumer goods are traded. These are food, industrial products, etc. They can be bought and sold wholesale or retail.

The second type of systems of circulation is the market for factors of production. Here labor force, factories, plants, combines, land resources are bought and sold. It is also a fairly large system that obeys certain rules.

The third group of circulation, which forms the market system, is the trade in finance. Enterprises and organizations need money to develop and improve their technologies. This is where the buying and selling of financial assets takes place. Distinguish the money market (loans, loans) and securities (stocks, bonds, bills).

Market mechanism models

In market conditions, the economy is built according to certain rules. Behavior patterns on trading floors can vary significantly. This directly affects the economic development of any state.

There are 4 models of the market mechanism. The first group includes sites where the exchange is carried out under conditions. There are many buyers and sellers who exchange homogeneous goods. Such relations are regulated only by the ratio of supply and demand.

The second model is monopolistic competition. In this case, the manufacturer distinguishes his product from the total mass by price or advertising. The market is open to everyone.

The third model is monopoly. There is only one manufacturer on such a trading platform, its product is unique. Access to other enterprises on the site is closed.

An oligopoly is a market in which there are several producers who control the entire market, preventing other participants from entering it.

Disadvantages of the market system

The market in the economy has some advantages and disadvantages over other systems. Among its negative characteristics, one should note the lack of interest of producers in the conservation of non-reproducible resources.

Also, such a system does not have mechanisms for protecting the environment, incentives for the development of health care, education and defense. Such a system is not capable of ensuring the protection of the population, its rights and a stable income. Science is not carried out. This leads to insufficient development of the economy.

Therefore, the state pursues a balanced regulatory policy in the field of market relations.

Positive aspects of the market

Not being an ideal system, the market in the economy has a number of advantages. It promotes a harmonious distribution of resources. With a sufficiently high degree of limited information, this system can function successfully.

The market system is flexible. She can quickly adapt to changing conditions. The disharmony is quickly eliminated.

Also, this system competently applies the achievements of scientific and technological progress. The activities of people are adjusted without coercion, in a natural way. The various needs of the people are gradually being met. This leads to an improvement in the quality of goods and services.

Having considered what the market is in the economy, we can conclude about its advantages and disadvantages, the rules for conducting trade relations at various sites. This is an effective system that has been formed over many centuries. When properly organized, the market contributes to the development of the economy.

Market system is a single set of many markets for various purposes. This set was formed under the influence of a number of factors.

Firstly, in the conditions of industrial and post-industrial production, the market space has expanded many times in the following areas:

• natural production on a large scale turned into a commodity economy
• the labor force of the main part of the working people has become the subject of purchase and sale
• the sphere of paid spiritual goods and services quickly developed
• the final results of scientific research (scientific and experimental design developments) have turned into a commercial product

Secondly, modern production creates a huge number of various useful goods that satisfy the needs of a comprehensively developed person.

Thirdly, The widespread development of joint-stock companies has led to the fact that shares and other securities are sold on a special securities market.

Fourth, the accelerated growth of international economic relations required the creation of a developed market for foreign currencies.

Finally, intensified in the second half of the 20th century. the social division of labor went beyond production and embraced the market sphere. In it, specialized markets have arisen that promote specific goods and services to their consumers.

Therefore, the market that developed in the second half of this century is unthinkable without a system of division of labor in the sphere of circulation (purchase and sale of goods). In the latter, large types of economic activity are manifested: general (between large industries or areas) and special (between sub-sectors and types of commercial enterprises) division of labor. The general breakdown of the market is clearly shown in the figure:

Rice. Modern market system

In the system of markets, the following major industries are quite clearly distinguished:

• consumer products market (it is divided into many sub-sectors that sell food and non-food goods, the housing market, etc.)
• market of means of production (here, material factors of production are acquired: equipment, vehicles, buildings, structures, raw materials, fuel, electricity, etc.)
• services market (this includes various types of communal and consumer services, financial and insurance operations, commercial, social, cultural, spiritual and other services)
• labor market (for employers and employees)
• market of scientific and developmental developments (products of scientific research, ready for development in production)
• loan capital market (the sphere of purchase and sale of temporarily free funds used for production purposes)
• securities market (stocks, bonds and other income-generating documents)
• currency market (national and international institutions through which the purchase, sale, exchange of foreign monetary units and cash settlements with other states are made)
• the market of spiritual goods (the area of ​​sale and purchase of products of intellectual activity of scientists, writers, artists, etc.)

The broad and deep development of market relations has unusually increased their active economic role. The market provides production with the entire set of subjective, material, scientific, technical, intellectual and financial conditions for development. All major manufacturing industries are highly dependent on specialized market influences. It is no coincidence that the national economy was called a market economy. This does not negate the significance of commodity production in general. We are talking only about the new state of the economic organism, when all its cells are affected by market relations.

In the second half of the XX century. the degree of development of each national system of market relations has received a new dimension. A distinction is now made between closed and open national economies. A closed economy is characterized by the fact that all goods and services are produced and consumed within the country. An open farm is one in which part of the production is created for domestic consumption, and the remaining share is sold abroad. At the same time, the state purchases goods and services manufactured in other countries.

The transition from a closed to an open economy is associated with the development of forms and types of interaction between participants in both national and world markets.

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

The market reacts quite quickly to changes taking place 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 harmonization 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 , encouraging producers to create goods at the lowest cost. If the price decreases, then producers 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, the spontaneous actions of entrepreneurs lead to the establishment of more or less optimal economic proportions. The regulating “invisible hand” of Adam Smith operates: “The entrepreneur has in mind only his own interest, pursues his own benefit, and in this case he is guided by an invisible hand to a goal that was not at all part of his intentions. In pursuing 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, however, the regulatory role of the market continues to be preserved, 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 makes it possible to determine the fullness or scarcity of markets for each type of product, the level of costs for their production, technologies and directions for their improvement.

4) Sanitizing function. With the help of the market, the social production is cleared of economically unstable, unviable economic units, on the contrary, it gives the green light to more enterprising and efficient ones, and due to this, the differentiation of commodity producers is carried out. As a result of this, the average level of sustainability of the entire economy as a whole is continuously increasing. According to Samuelson, between a third and a half of all retail stores in the US go out of business within three years of opening. Quite often perish in competitive struggle and large firms. In conditions of concentration of production and capital

Market- category of commodity economy, a set of economic relations based on regular exchange transactions between producers of goods or services and consumers (between sellers and buyers). The exchange usually takes place on a voluntary basis in the form of an equivalent exchange of goods for money (trade) or goods for goods. One of the main criteria of the market is the presence of competition. The ordinary concept of "market", which is commonly understood as a meeting place for sellers and buyers, mass purchase and sale of goods, only partially reflects the content that is embedded in the word "market" by economic science and economic practice. Market Broadly speaking, it combines several concepts.

First, the market is any trading place goods and services. In the Soviet economy, the market as a place of sale in everyday life was associated primarily with collective farm, food markets, markets for agricultural and handicraft products, bazaars, and fairs. It was not customary to call retail and wholesale shops markets. Hence the distorted idea of ​​the market, even in the simplest sense of the word. After all, if the market is a place for buying and selling, what difference does it make where the trade takes place - in a store or on a square?

Secondly, the market is all set of processes trade, acts of sale. In this view, the market is characterized by such features as the type of goods sold, sales volume (market capacity), trading method, price level (high, low). At the same time, the market is already understood as trade in the broad sense of the word, as a market process of connecting the seller and the buyer.

Third, the market is system of economic relations between its participants arising in the process of buying and selling, i.e. commodity-money relations.

Finally, fourthly, in the most universal interpretation, the concept of "market" is associated with the market economy as a whole, becomes an abbreviation of the term "market economy". Thus, it has become generally accepted to speak and write about Russia's entry into the market, about the transition to the market.

Market classification: on a territorial basis (local, regional, national, world). According to the subjects entering into the exchange (the market of consumers, producers, resellers, government agencies). By objects of exchange (markets of means of production, market for goods and services, financial market, intellectual property market). According to the degree of compliance with the law (legal or official, illegal or shadow).

According to the degree of development of economic freedom (free and regulated).

By the nature of sales (wholesale and retail).

According to the degree of market saturation: saturated (buyer's market) - supply exceeds demand. Unsaturated market (seller's market) - demand significantly exceeds supply. From the point of view of monopolization (the level of competition), there are: a market of free (perfect, pure) competition, where all sellers and buyers have equal rights and opportunities; market of imperfect competition. Depending on the type of consumers: the consumer market, the market of organizations. Depending on the degree of consumer involvement in the sales process: potential, available, qualified available, target, developed market. 9. Basic economic characteristics of the market: demand, supply, price.

Demand, supply and price are the main elements of the market. Demand is the quantity of goods or services that a consumer is willing to purchase at a specific price from a range of possible prices over a given period of time. Demand is also the DESIRE and OPPORTUNITY to buy a certain product or service. The concept of demand is dual, because on the one hand, these are various desires, and on the other hand, opportunities provided by money. Hence the demand is quality And quantitative sides. The qualitative side of demand is characterized by the dependence of demand on various needs and is formed under the influence of such factors as climatic conditions, a significant social, national, religious environment and the general economic level of development of society. The quantitative side of demand is always related to money, i.e. with the pleasurable possibilities of the population. Demand backed up by the purchasing power of the population is called effective demand. The following factors influence the magnitude of demand: they are price and non-price. The price factor is the price of the product. Non-price factors - consumer income, types and preferences of consumers, the availability of substitute products, the availability of complementary products, the number of buyers in this market, the expectations of buyers. Distinguish between individual and market demand . individual demand- the demand of an individual buyer for a particular, specific product. market demand- the total demand of all buyers for this product at a certain price. The second essential element of the market mechanism is sentence. This is the desire and ability of producers (sellers) to supply the market with a certain number of goods and services at a given price. The offer is the result of production and reflects the desires and capabilities of the manufacturer to produce and sell their goods. Supply factors are: price - the price of the product itself and the price of the resources used in the production of the product. Non-price - this is the level of technology, production costs, company goals, the amount of tax subsidies, prices for related goods, producers' expectations, the number of goods producers. Distinguish between the dependence of supply on price and non-price factors. The relationship between supply and price is reflected in the law of supply, the essence of which is as follows: the amount of supply, other things being equal, changes in direct proportion to changes in price. Price - this is the monetary expression of the value of the goods, i.e. the amount of money that can be earned by selling a product. Under the influence of the competitive environment of the market, supply and demand are balanced, as a result of which the market price and the quantity of the purchased product are established. The market price is considered the equilibrium price when it determines the level at which the seller still agrees to sell, and the buyer already agrees to buy the goods. At the same time, buyers and sellers will be satisfied with the situation that has developed on the market at the moment. lowering the price below equilibrium will not be beneficial not only for sellers, but also for buyers, because this will reduce the number of offered goods. A price increase above the equilibrium will not suit not only buyers, but also sellers, since it will reduce the purchased volume of goods. 10. Specific features of the medical services market. Features of medical services can be divided into three groups. First group- features related to the quantitative characteristics of the service: - the service can be presented both in a commodity form and in a non-commodity form for the consumer (state guarantees for the provision of free medical care), that is, it can be market or non-market; - the cost of the service is determined depending on the source of its financing. Second group- features associated with the specifics of the manifestation of the very result of professional activity: - the result is embodied in the person himself (material components of the service - as an exception (X-ray, electrocardiogram, prescription); - the service is always individual in nature (not a service is brought to the market, but only information about services); - the result is always diverse in its physical volume; - the result has a complex structure and breaks up into many quasi-results; - the amount of resources necessary to achieve the result cannot be precisely determined in advance; - the result is diverse in terms of manifestation. Third group- features associated with the process of providing services: - dependence on local climatic conditions; - the presence of an active relationship between the doctor and the patient; - the possibility of territorial movements; - variety of duration of the period of rendering identical, adequate services; - high degree of risk. Additional features:

1. There are three groups of subjects on the medical services market:

Producer, seller of medical services and goods (medical institution, medical worker);

Buyer (patient);

Intermediary (insurance medical organizations)

2. There is a characteristic asymmetry of information between the producer and the consumer in relation to the consumer properties of the service received.

3. Almost absolute trust in the seller of medical services.

4. A medical service that can be easily sold must be of high quality.

5. High priority of medical services.

6. Lack of a clear relationship between the labor costs of medical workers and the end result.

7. Priority of social and medical efficiency before economic.

Features of medical services

1. Intangibility medical service.

2. impossibility feel before you buy it.

3. inseparability from the source of the service. Provision of medical

services require personal contacts between producer and consumer.

4. Perishability services. Medical service is different from

other goods in that the production process coincides with the sales process.

5. inconstancy quality of medical services. Depends on

qualifications of a specialist, equipment of medical facilities.

6. A medical service cannot always be evaluated positively.

Ynok

Market

Market - a set of socio-economic relations in the sphere of exchange, through which the sale of marketable products is carried out and the social nature of the labor contained in it is finally recognized. MARKET is a form of communication between commodity producers. It is based on economic relations generated by the division of labor and forms of ownership of the means of production. The main elements of the market mechanism - price, demand, supply. From the point of view of territorial boundaries and its scope, there are local MARKET, national (internal) and global (external).

pharmaceutical market- this is a set of persons interested in the production, sale and consumption of medicines: companies - manufacturers, distributors, pharmacy staff, doctors and management of clinics and hospitals and, directly, the patients themselves.

Such a detailed division of the pharmaceutical market participants is necessary, first of all, to differentiate their needs in relation to the proposed medicines (drugs).

Market Conditions
The main condition for the emergence of market relations is the social division of labor. The division of labor means the differentiation of producers. Even in primitive society, some members of the community were engaged in one kind of activity, others in another, for example, hunting, fishing, farming, crafts.
History knows a number of major stages in the social division of labor. This is the separation of cattle breeding from agriculture, the separation of handicrafts as an independent industry, the emergence of merchants. The desire of people to overcome the limitations of natural resources, as well as to increase the efficiency of labor, the growth of its productivity led to a constant deepening of the social division of labor, its specialization. All this, on the one hand, separates the producers, separates them according to the types of labor activity, on the other hand, creates stable ties between them. However, such a general economic condition is still not enough to understand the reasons for the emergence of the market. Human history knows a period when there was a social division of labor, but there were no exchange relations. For the formation of the market, it is necessary: ​​the economic isolation of producers and the regularity of exchange.

The isolation of producers led to the emergence of the necessary and only possible form of establishing economic ties between isolated producers - exchange. In other words, as a result of the division of labor, people have a need to exchange goods produced by their labor.

Market types.

There are a huge number of types of markets, but certain signs allow them to be grouped into separate groups, according to their economic purpose and spatial characteristics.

The foreign market is the sphere of such commodity exchange, in which the producer or buyer is outside the country. The origin of such a market necessitates the implementation of foreign trade operations.

Domestic market - due to commodity exchange, which is carried out only within the state.

The local market is a market in which the relationship between the seller and the buyer is limited to the same territory.

Wholesale market - where only large quantities of goods are sold, where the main feature is price reduction due to an increase in turnover.

The service market is a specific market for the sale or purchase of various types of services, which serves to meet the needs of people.

Insurance market - is engaged in the provision of services in the field of insurance.

Financial market - performs operations in the field of securities, lending, deposits and investments.

Banking market - services are provided here among banking organizations and credit societies.

The housing market is that part of the market where relations between home sellers and buyers accumulate.