Forms and types of market relations

1.What will the commercial banks be financing during 1981 and 1982?

2.How can IMF member countries get additional financing?

3.What does the IMF impose on borrowing nations before granting them a loan?

4.What are the developments at the IMF that bankers are worried about?

5.What are some of the conditions on loans to member countries that the IMF imposed during 1981?

D. Composition. Write a paragraph describing how the International Monetary Fund functions and what its policies are

Building Your Vocabulary

A. Matching. Find the words in the right-hand column that match the words closest in meaning in the left-hand column

B. Rewrite each of the following sentences replacing the underlined word or words with the correct form of one of the new words of this lesson

1.We're trying to plan how much money we'll need.

2.The new regulations are less strict.

3.The government needs IMF financing for its program of economic charge.

4.The poorest countries can't meet their financial liabilities.

5.Bankers worry that IMF conditionally is becoming less strong.

6.They need more capital for economic reform.

7.Some nations have a successful system for producing and distributing wealth.

8.Many of the essential products are very expensive in poor countries.

Forms and types of market relations

Trade forms

Trade deals can be classified:

(1) on communication methods between agents of the market. Producer or the owner of goods directly sells goods to consumer. At first, producer sell a useful thing to trade intermediaries, and last resells its to consumer.

(2) depending on types of payment.

Barter trade: out of cash exchange of kind of goods for another.

Sale of the benefits for cash money (or payment under the check). So the population buying the necessary things on a consumer market.

Goods selling for out of cash money (payment is provided by transfer: on the order of the buyer the bank draws out money from its account and transfers into account the seller). Buying the means of production more often.

Sale of the goods by cash on delivery (the consumer living far from trade enterprise, receives a goods by transfer of money to the seller).

Buying to loan (the buyer receives the benefits, usual bringing for it a small payment and in exchange for the engagement to pay other money in defined terms).

(3) taking into account of sales volume there are two forms of goods selling: differentiate.

Wholesale trade: products are bought by wholesale (in large lots) intermediaries from producers through commodity exchanges.

Retails means purchase and sale of mainly consumer benefits in small amounts. Separate persons buys the necessary products in shops, trading tents, in the food and ware markets.

Types of the markets

The market in one important relation is directly opposite to a subsistence economy. In this economy possibility to choose at its desire those or other blessings frequently is not given to the consumer. The market basically is capable to provide to its agents the maximum degree of economic freedom.

Given freedom allow the buyer to choose its interesting goods from set of the interchangeable and independent blessings. The consumer can find also those sellers who will better serve and will sell a product on similar conditions. The seller is free to choose the most suitable buyer and to dispose of the money obtained from sale at own discretion. Both the buyer, and the seller can choose commercial transaction conditions without restrictions.

On degree of development of these and other economic freedom the markets can be subdivided into three types: the free; the illegal; the regulated.

The free market possesses a maximum of economic freedom in their classical understanding about which it is told above.

Meanwhile determination "the free" market demands specification in two relations: for whom it is free and from whom? Free such market is for its subjects. They posess the so-called economic sovereignty (complete independence). So, sellers decide what to sell, to whom to market products and at what price. The similar sovereignty buyers possess also. Owing to it in the classical market economic relations are under construction only across. Between counterparts (an armour. contrahens - agreeing) there are partner relations on the basis of the economic agreement, the contract (the agreement establishing the rights and obligations for both parties for any term).

The market of the first type is free from intervention of the state and strict legal adjustment.

For the sake of true it is necessary to recognise that such freedom has the unattractive party. Because of willfulness of subjects of the market and non-observance of "game rules" by them this type of the market has received unflattering names - "wild", "flea", "not civilised".

The second type of the market - illegal - is close on character of behaviour of its subjects to the first type. But they essentially differ among themselves. The illegal market includes its version - shadow trade. It is led with infringement of laws and rules of purchase and sale of the usual goods (in the absence of necessary patents, licences, at non-payment of market fees, taxes and etc.). The black market is illegal also.

On it it is underground trade the goods which the law are forbidden for implementing (for example, drugs, the weapon).

Determining line - spontaneity, unpredictability of development and uncontrollability is inherent in the first and second types of market relations. These qualities are not casual. They express the basic lines of classical capitalism in market sphere;

In the market individual proprietors of the small enterprises freely act;

Businessmen is usual create products at own risk, without the preliminary arrangement with buyers;

Manufacturers, as a rule, care of retail of products to the population.

Such position was characteristic for market exchange XV-XIX centuries But in XX century has arisen and the new type of market relations has completely developed.

The market of the third type - regulated, the subordinate to a certain order which is fixed in rules of law and is supported by the state. Such order is caused by the objective reasons.

Date: 2014-12-28; view: 1239