The market has long had a huge impact on humanity. It was under his influence that the world became what it is now. What is the market today? This is competition, which is the engine of progress, because under its influence there are innovations and inventions necessary for humanity.
A bit of history
Market development covers the history of more than one millennium. It goes along with human activity and has been known since the time of the first civilizations. However, unlike modern, ancient market relations had special features. Since there was no single measure of price, trade had an exchange character. An exchange took place, although from ancient times the role of gold and silver as metals, acting as a universal trading tool, has been singled out. At that time, the slave trade represented a large role in state revenues; today it is difficult to imagine. With the separation of crafts from agriculture in the Middle Ages, the world market began to develop rapidly, the first banks and financial offices appeared that earned on loans.
In the era of capitalist relations, starting from the 17th century, the role of land and resources was reduced, and at the same time, the role of money and capital was increased - this is, one might say, the forerunner of the modern market.
Goods and money
The market consists mainly of two concepts: goods and money. Although if you look at the essence of money, then this is also a product. But it is universal, it can be exchanged for any other product. The essence of the market is exchange. That is, the buyer and seller in reality are money changers. The seller exchanges goods for money, the buyer - on the contrary. But at the same time, without money, the market would not have developed as rapidly as it had developed since their invention.
Modern market
Initially, the market was represented exclusively by trade, now the concept is much deeper. This is a combination of its various types, including the market for services, real estate, securities, etc. Starting from the 20th century, trade began to play the main significance for development demand factors and offers that created competition of all kinds. She penetrated into all areas of the markets. State prices are built on the basis of regional prices, while national prices provide information for international pricing.
There is one more pricing factor - remoteness. For example, the cost of seafood will be the higher, the greater the distance from the sea, and vice versa. In order to understand thoroughly what a market is, it is necessary to study it for years, because each type of market has its own nuances and patterns. Say, experts in foreign exchange trading may be ignorant of real estate.
Service market
Depending on the level of economic development of the state, the services sector will occupy more or less importance in it. If a country is at an industrial level of development, then industry is more developed there and services to a lesser extent. And in those states that have reached a new level of development - post-industrial, the service market plays a fairly large role. For example, in the UK, the service sector is about 80% of the country's GDP! This includes utilities, cultural, transportation services. Besides this, what is a market without the educational, medical, and domestic services provided to the public? They occupy the lion's share of GDP in industrial and post-industrial countries.
Real estate market
Housing has long been the subject of bidding. It can be bought, sold, leased, transferred to hereditary use or donated.All this simplifies life for many citizens who often move from place to place or for some other reason forced to change housing. In order to understand what the real estate market is and what impact it has on the economy of states, it is enough to give one example. In the 80s of the XX century in Japan there was a boom in real estate, fabulous prices were set for it, but these prices were artificially high. "Bubble" inflated. As a result, it burst, real estate prices fell sharply, an economic recession began. As a result, housing in Japan has depreciated for decades, even today, their own real estate there is "not in trend."
Market for investments, securities and currencies
An investment is the contribution of one company, state or private individual to the development of something. For example, the most famous investor Warren Buffett became one of the richest people in the world due to his contribution to undervalued and already successful companies, including Coca-Cola, Gillette, American Express and others. The shares of these companies annually bring him a solid profit.
With regard to currency, the global market is developing and supplemented by new tools. Western countries have long been living in conditions of the acquisition of securities and speculation in currencies. Since childhood, the US population has been involved in these methods of earning, in our country this is only beginning to gain momentum, but nevertheless, they are already known to a large number of people, and there are geniuses of exchange trading in our midst.
In the modern financial system of the world, these markets occupy a significant part of the GDP indicator, therefore, they have a rather large impact on the economy.
In addition to the types of markets listed above, there are others that are less important for the economy of individual countries and the world. But for a general understanding of what the market is, the information provided is sufficient. Market relations are firmly rooted in most countries of the world and in the heads of their citizens. The market influences the development of political ties. Some politicians say that politics comes first, then the economy (in importance), others, for example, President of Kazakhstan Nursultan Nazarbayev, says the opposite: first the economy, then politics.
