Before you understand the concept of "world markets" you need to, in general, consider international relationships. It is the MEO that is the driving mechanism that regulates the work of markets.
Thing
Like every concept, world relations have their own subject. They are directly MEO, economic relations between states, as well as the way to regulate relations in the economy. The main reason for the emergence of international relations was the fact that each power has its own level of economic development, each country has its own resources, volume, equipment, quantity of labor and capital.
Subject
In the MEO there are 4 entities involved and interconnected:
- state;
- international organizations and financial centers;
- enterprises of the nation;
- large corporations.
The state can be considered the main subject. The United Nations Organization decided to divide all the powers into three groups. The first is developed countries, the second is developing, the third is a transition economy.
International organizations and financial centers include the UN and its service departments. Enterprises include all existing national organizations, as well as individuals. Corporations should include multinational companies.
World money flow and markets
To understand the term “world markets” you should first find out what is the global financial flow. This is the transportation of money from one state to another. Thanks to him, there is a payment for goods, services, currency and so on. The financial flow is moved through banks, stock exchanges and special institutions.
So, the “money river" passes through the main world markets. They are characterized by a lack of borders and large scale, as well as round-the-clock work and the attraction of popular currencies.
World markets have been formed thanks to the rapid and effective development of economic relations and are a system of market relations that ensures the accumulation and balance of the global financial flow. This whole process takes place in order for production to work continuously and cost-effectively.
It is worth noting that world markets (MR) are derivatives from national ones. Therefore, MR most often refers only to the world economy. There are several approaches to the definition of this concept.
Classification
It is very difficult to classify MR, since in this concept there are many gradations that are quite subjective. However, there is a generally accepted classification of world markets for several criteria. The first of these is the goal of economic analysis.
Trading markets, in turn, have their own objects:
- goods and services;
- factors of production;
- money and finance;
- technology.
They have their own level of product standardization:
- homogeneous product;
- differentiated product.
They have their own type of buyer:
- Consumers
- production.
Belong to a specific industry:
- National economy;
- industry;
- sub-sectors.
Type market structure The following types of MR can be determined:
- Perfect competition (examples are MRs with commodities, agricultural products, frozen fish, jewelry and precious metals, cooperation of small firms at the local level).
- Running competition (competitive MR can include air carriers, light industry, special labor markets, fairs with agricultural products, bookstores, pharmacies, etc.).
- Monopolistic competition (food industry, clothing, furniture, household chemicals, cosmetics, restaurant business).
- Oligopoly and oligopsony (this includes MR engineering, automotive, cigarettes, tires, oil, cellular communications, drinks, tennis balls, etc.).
- Dominant company (this category includes companies that have won a dominant position in their industry, for example, Boeing as the owner of 60% of the aircraft manufacturing market).
- Asymmetric information (global labor market, industrial equipment, innovative products, paintings, etc.).
- Monopoly (an example is a star of show business, a popular athlete, a prestigious consumption market, etc.).
- Cartel (this includes all existing cartels such as sugar or producing weapons).
- Natural monopoly (in this category are industries necessary for everyday life - electricity, water utilities, utilities, etc.).
Functions
Of course, global markets have their own specific functions, which are largely similar and perform a specific task. These may include the following objectives:
- Integration - this function is responsible for the formation of a single economic system.
- Systematization - is responsible for the distribution of states according to the criteria of economic development and power.
- Mediates - helps to realize the results of the involvement of powers in MRI.
- Informs - reports the difference between their national costs and international.
- Stimulates - adjusts the work of the world market, in accordance with the received information about the difference.
- Sanitize - helps get rid of unnecessary and undesirable structural units of MR.
Finance
The global finance market is a group of banks, various financial centers, including the stock exchange, they help to efficiently make a global financial flow. The main task of the MYFF is to ensure the movement or distribution of free finances for the development of the economy and revenue. The main function of this market is the operational formation of capital. The global finance market has its own characteristics:
- Low financial transaction costs.
- Easy access to MP.
- The disclosure requirement has no hard claim.
- The difference in the level of participation in the debt securities market and the stock market.
- The volume of the debt securities market is larger than the equity market.
Black Gold
The world oil market is an international institution responsible for oil trading. Most often, the global oil market is called trading for paper oil (stocks). This market is the most expensive and profitable place.
At one time, oil became "black gold", and now without it the work of many industries and the effective functioning of industry is impossible. Due to the fact that the world oil market is heterogeneous, its functioning system is complex. This is due to the fact that oil production is available for a limited circle of the state. 25% of the total volume of this raw material belongs to Saudi Arabia, and this country is the main oil supplier in the world. In total, the Near and Middle East owns more than 65% of oil reserves.
Services
The world market of services and goods is a set of international institutions responsible for the exchange, purchase and sale of goods and services between the subjects of world economic relations. Like every market, MR services and goods has its own characteristics:
- transactions occur with the participation of residents of powers;
- goods and services cross country borders;
- impact on commodity flows;
- participation in trade relations of interstate institutions.
The main organization that monitors the efficient transfer of goods and services is the World Trade Organization (WTO). It includes more than 140 countries that are required to comply with legislative agreements.
Country
The process of development of the global market determines the emergence of new countries. The number of participants cannot be fixed.Each market category can include a certain number of states that are leaders.
For example, the countries of the world finance market are 13 world money centers. They are located in developed cities of the world: London, Tokyo, Paris, Singapore, Bahrain, etc.
The foreign exchange market includes a limited number of organizations, among which there are national banks. Since almost all operations that occur on the world market are accompanied by the use of the dollar, euro or gold, the leading countries are represented by the United States and EU countries.
Basically, the subjects of economic relations can be considered enterprises, organizations and various institutions of individual countries, foreign economic organizations, international economic institutions, as well as large corporations and companies.
