Essence, the basic categories of the market

Formation of the market is defined by presence of the goods on sale, money at the buyer and its need for purchase of the goods or services. By its purchase market attitudes are carried out.

There are markets of factors of manufacture (the ground, work, the capital), the markets of products and services (photographing, transportation), commodity markets of long and incontinuous using.

Characteristic features: mutual presence of the buyer and the seller, the contradiction of their interests. Depending on the made goods or rendered services they can vary places.

The Market is a system of the economic attitudes developing during manufacture, the reference and distribution of the goods, and also movements of money resources.

Basic elements of market structure are the following: unlimited number of participants of certificates of sale and purchase, an easy approach on the market, the equal rights of the seller and the buyer, presence of a competition. The competition is the economic mechanism of the market, with its help cost of the goods decreases, quality improves.

The market mechanism is a competitive struggle between manufacturers of the goods and services for the consumer, the client. Its essence is made with following elements: the offer, demand for the goods, the prices arranging the seller and the buyer in which the rate of return is incorporated.

Advantage and the negative parties of the market. The market carries out adjusting role. It promotes an effective utilization of resources, directing them in manufacture of the goods best-selling. The negative party of the market consists that it does not guarantee constant profit, employment of the population, independence of inflation. Well-being of commodity producers depends on the income, of results of realization of the made goods, the rendered services through a competition.

Functions and structure of the market. The resulted definition of the market demands the approach to its characteristic as to the complex organized object consisting of a wide spectrum of separate parts, elements. Such variety of components and specificity of functioning of each element predetermine the basic functions which are carried out by the market.

- The market is a communication facility, communications of sellers of the goods and buyers. Commodity producers, that is the enterprises realizing the goods and services concern to sellers; the workers selling the ability to work, a labour; owners of all kinds of industrial resources which sell or concede using these resources for certain time. The consumers getting the offered goods and services, and also separate consumers or the firms buying those resources concern to buyers (alive work, raw material, the capital) by means of which they and carry out manufacture of the goods and services; more often the same subject acts in the market and the seller and the buyer.

- As a result of interaction of the seller and the buyer the market establishes mutually acceptable both for the first, and for the second the prices for the goods (services), stimulating that their manufacture and selling.

- The market, means of interrelation of sellers and buyers, distributes the information sellers (and under what price wish to sell what) and what exactly would get or will be got in the future by buyers. Thus the market not should be necessarily any concrete
Geographical place. Any source of distribution of the information on sale and purchase of the goods and services forms the market of this goods.

- Providing an exchange of the new information on change of a situation (change of demand, the offer, etc.), the market enables its participants quickly enough to react to these changes and according to a situation to change the prices. In turn, the prices operate as a signal to sellers and buyers, informing them the information on deficiency of the goods, services, resources or about their surplus.

The market as a whole is characterized by the complex and branched out structure. It can be classified to various attributes:

- On elements of a market infrastructure;

- On economic purpose of objects of market attitudes;

- On a geographical position and scales, borders, its describing;

- On a degree of restriction of a competition;

- On branches of spheres of manufacture and services;

- On character and the sizes of sales.

A. First attribute of classification of the market in general, as a whole, assumes allocation of three basic elements:

- Commodity market and services;

- The market of factors of manufacture;

- Financial (or monetary) the market.

The commodity market and services includes huge quantity of the special markets of sale and purchase of the corresponding goods (them much enough), and also assumes presence and functioning of such structures, as commodity exchanges (the centers of sale and purchase, registrations of these transactions) on corresponding goods, the organization of wholesale and retail trade, the marketing and intermediary organizations.

The market of factors of manufacture covers processes of sale and purchase of factors of manufacture - the grounds, work, the capital, enterprise abilities. Thus such factor of manufacture as the ground, includes not only directly certain sites of the ground used for this or that manufacture, but also the natural raw material extracted from the ground or received as a result of its use (for example, production of plant growing).

The factor of manufacture in the form of alive work assumes use of services all working (the workers serving, the administrative personnel, separate businessmen). The Labour market assumes also presence of such important tool of this market, as labour exchange where the labour demand of a various kind and qualification and the offer of this labour is directly formed. Besides it, the important function of labour exchange is formation of a reserve of a labour, preparation and retraining of personnel (first of all, unemployeds), the organization of public works for maintenance of employment of the population.

All the listed elements of a market infrastructure are integrally interconnected and accordingly influence against each other. If they are in balance and in all economy there comes the general macroeconomic balance.

B. Second attribute of classification of elements of the market - on economic purpose of objects of market attitudes - assumes allocation of fineer segments of the market in the form of:

- The market of consumer goods and services;

- Commodity market of industrial purpose;

- The market of new ideas, technologies, projects (know-how);

- The raw market;

- Labour market;

- Securities market;

- The market of secondary raw material, etc.

C. On a geographical position and borders of distribution the market is subdivided into following kinds:

- The local (regional) market;

- National (within the limits of the country) the market;

- The world market.

D. On a degree of restriction of a competition distinguish:

- The free market;

- The market of a monopolistically competition;

- oligopoly the market;

- netto monopoly.

Such classification covers numerous aspects of the market of any goods (for example, quantity of firms, the "know-how", types of the sold goods and т. Item) which influence behaviour and activity of firms.