Market is one of various systems, institutions, procedures, legal strengthening and infrastructure that all parties participate in the exchange. Although all parties can exchange goods and services through barter, most markets rely on sellers to provide goods or services (including labor) in exchange for buyers' money. It can be said that the market is the process of establishing the prices of goods and services.
The market promotes trade, social distribution and resource allocation. The market allows the evaluation and pricing of any tradable item. The market appears more or less spontaneously, or it can be deliberately constructed through the interaction between people to exchange the rights (such as ownership) of services and goods.
The market usually replaces the gift economy, usually through rules and customs (such as booth fees, competitive pricing, the source of goods sold (local agricultural products or stock registration) and threats from the army or the police, if these rules are broken.
The market may be affected by the products (goods and services) or elements (labor and capital) sold, product differentiation, exchange place, buyer's pertinence, duration, sales process, government supervision, taxation, subsidies, minimum wage, price ceiling, transaction legality, liquidity, speculative intensity, scale, concentration, transaction asymmetry, relative price, volatility and geographical extension.
The geographical boundaries of the market may be very different, such as the food market in a building, the real estate market in a local city, the consumer market in the whole country, or the economy of an international trade group applying the same rules. The market can also be global, such as the global diamond trade. The national economy can also be divided into developed markets or developing markets.
Market generally refers to the field of commodity exchange. Such as international market, domestic market and rural market.
trait
Market is the product of social division of labor and commodity production. Where there is social division of labor and commodity exchange, there is a market.
Three factors that determine the market size and capacity: buyers, purchasing power and purchasing desire.
At the same time, in the process of its development and growth, the market has also promoted the further development of social division of labor and commodity economy. Through information feedback, the market directly affects what people produce, how much they produce, time to market, product sales and so on. In the development of commodity economy, producers, suppliers and sellers are linked, and exchange conditions such as exchange places and exchange time are provided for producers, suppliers and sellers to realize the respective economic interests of commodity producers, operators and consumers.
spontaneity
In the market economy, the economic activities of commodity producers and operators are all pursuing their own interests under the spontaneous adjustment of the law of value, which actually determines their own production and business activities according to the fluctuation of prices. Therefore, the first function of the law of value is to spontaneously adjust the distribution of means of production and labor in various departments and play an active role in promoting the rational allocation of resources.
It also makes some individuals or enterprises behave improperly because of excessive pursuit of their own interests, such as producing and selling fake and shoddy products; Bullying the market and disrupting the market order; No professional ethics, etc. Moreover, the spontaneous adjustment of the law of value will easily lead to the polarization of all social strata, and the resulting contradictions will not be conducive to the healthy development of the economy and society.