Factors of market development in Economics

The market in economics

A mechanism for people to allow the exchange market (Shi-jo), which is usually dominated by the theory of supply and demand. Both the abstract market and market that have been identified products of the single are exchanged there. In other words, the place is physically present as wholesale markets, such as fruits and vegetables mentioned above, and if the auction people go between between the suppliers and consumers actually, bidding goods general, as the pricing of services there is a case a person is not present, the market is not physically present. Is regarded as the market exists in the abstract even if it is like the latter to economic.

Market even if they are not physically present, call it a market it, the exchange of each transaction is because is related to the exchange transaction other. For example, customers can go to the shop there is when you buy the chocolate is cheap, you do not sell store the customer is no longer coming is not cheaper. It also does not have to cooperate physically Thus, tuning situation call a market affects economically. If that market in this sense often.

Since isolate the extent to which interact, called "soy market in China" or "car market in Japan". And how it is used "global market (from the Chinese)" like that and "global market" also it is these days the cooperation of the national economy of the country is growing.

Market is working in that it put in place a single seller with a lot of interest, it becomes easier to verdict in favor of the buyer expected them. It is economy that depends on the interaction between the buyer and seller primarily to allocate the resources, is known as a market economy, and is in contrast with non market economy based on the gift and controlled economy.

Factors of market development in economics

(Market) occurs the market is in the background risk in commodity trading. Consider, for example, can have a person who mandarin orange is left over, and you want to replace it with apple. At this time, the probability that can find a person apples surplus high as such. However, the probability who apple is left over will covet oranges fairly low. Since the condition is consistent with the double in this way is difficult, money was born. It is possible to trade oranges and apples by replacing the money.

However, some problems are not resolved yet this alone. If the location and to pay the money to buy an apple from the apple is left over, where to get the money by selling oranges are geographically separated, you can have the money a lot of advance, and bear the cost and risk of moving no longer do without.

Where trading is concentrated is required for this. Normally, the transaction does not exist equally in various places in the region. For this reason, it is where you can easily buy and sell the place often traded relatively in the region. It follows that people and goods is to focus the purpose of trading in such a place, the market is formed.