Invisible hand and sharp eye state, the essence and...

Invisible Hand & Sharp Eye state

The essence and social meaning of market relations

The market is a surprisingly strong social and economic phenomenon, thanks to which the entire socio-economic order of society is largely maintained and historical progress is being made. The origins of the market go deep into the gray ages, when people entered into a sale-purchase relationship by simply exchanging goods, when they mutually acquired what they did not have, but what they needed was vital. Historically being formed as an objective economic and social reality, the market develops and civilizes with society. This is a natural, basically self-regulating mechanism for identifying existing needs and satisfying them, the only form of the relationship between the producer and the consumer consistent with the mind, a form consecrated by the practice of many centuries of human history. The market is a powerful regulator. It is a sort of whirlpool, which in its inexorable stream literally covers all aspects of the life of society, even interpersonal relations. The market primarily regulates and controls the supply-demand ratio, reveals the viability of certain enterprises, institutions, firms, collectives and even individuals, constantly keeping the intensity of their activity at the highest possible level, stimulating the desire for competitiveness. The market economy is driven by economic motivation, ie. internal impulses directed to the achievement of profit. If you do not go into financial and economic details, you can define as the difference between the sum of money received for the goods and services sold and the total costs of the enterprise for their production and sale on the market. Profit is extracted when the product is sold at its cost.

Economic benefit is the basis of all the fabric of economic life that passes through the crucible of the market: the seller who wants to sell at any price wants to sell more expensive, and the buyer - to buy cheaper. The market is an arena of transactions guided by economic interests. But a truly wise and experienced entrepreneur can not be easily deceived by false signs of gain. Naturally, the producer of the goods and the buyer always agree in the sense or in the sense that one wants to buy what the other wants to sell, though, however, not always at the same price. But there is always a price, which both ultimately satisfies and reconciles: the purchase and sale took place. What a person buys, he consumes, knowing that he will again and again buy. And the one who sells knows that he will sell again and again. So the endless thread of the web of the market is poking. There are no antagonistic contradictions in the producers' desires, as long as everyone has buyers and sellers while there is demand and marketing. But as production volumes increase, each of the manufacturers wants to produce more and more goods in order to capture the entire sales market. The desires of producers in this case come into conflict, and the struggle between them becomes inevitable. The market is cruel and impartial: there is no shame or conscience on his face. He obeys only the principle of supply and demand. The more demand, the higher the price and vice versa: that's his dumb imperative. As for consumers, the fewer will be willing, for example, to buy goods of this particular type, the lower its price. Consumers' desires are encountered when the quantity of these things, both basic necessities and luxury goods, is less in the market than the number of those who want to buy them. Before becoming an object of market demand, this or that thing through advertising has declared itself ("how good and necessary it is") to a potential buyer, thus provoking a "warning request about themselves."

The consumer through the market influences the entrepreneur making the goods and, conversely, this or that enterprise, the firm, with the help of the organization created by it, powerfully acts on the consumer, say, through advertising, thereby exerting a strong influence on the market, pushing new goods, influencing the psychology of the consumer, changing his tastes and needs. The market is the very procedure of buying and selling, i.e. the very social human actions that occur in each particular case as an individual action or, strictly speaking, the interaction of the buyer and the seller. And every such action and interaction is full of subtle manifestations of the human soul.

The market is a set of commodity exchange relations, the socio-economic mechanism of interaction between the seller and the buyer, the sphere of exchange both within the country and between countries.

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