Market - What is it? characteristics, types, examples, and more

Market

Space in which commercial operations are carried out.

What is a market?

A market is a space in which commercial operations are carried out, such as the sale and/or purchase of goods, exchange of services for money, among others. Therefore, the market is that environment in which certain needs are satisfied through an exchange of goods, services, or money.

The market is the space in which economic agents actively participate by performing various activities such as offering goods or services, buying or selling products, etc. The most relevant variants that must be studied in a market are the good or service to be offered or acquired, supply and demand, stability, distribution channels, and prices.

The internal factors belonging to the market are affected by the actions carried out by the economic agents that participate in it, in such a way that they can modify the supply or demand of goods or services based on their needs or by establishing prices.

Market Characteristics

The main characteristics of the market are listed below:

• Commercial operations are carried out there.
• Its protagonists are the economic agents.
• It can be a physical or virtual space.
• In it, you can exchange bonds, shares, goods, or services, among others.
• They are governed through rules imposed by economic agents.
• They must abide by certain trade laws.
• Its operations significantly influence the behavior of the economy.

types of markets

The main types of market are listed below:

• Business market: one that is made up of organizations that acquire goods to carry out subsequent operations of production of goods or for their final distribution.
• Industrial market: one that is made up of industrial users, in order to acquire raw materials or goods to carry out large operations for the production of goods.
• International market: one whose range of operations has no geographical limits, therefore, the commercial activities of this type of market are carried out in more than one country.
• National market: one whose range of operations has geographical limitations comprised by the border limits of a given country, therefore, the activities of this type of market are carried out only within the territory of a country.
• Regional market: one whose operations are carried out in a specific geographical area of ​​a specific country.
• Municipal market: one whose operations are carried out in a geographical area corresponding to a municipality, generally has physical facilities and different types of merchants operate in them.
• Financial market: one that allows the exchange of financial values, such as bonds, coins, shares, etc.
• Stock market: the one that allows to carry out purchase or sale operations of shares, bonds, and other products that are listed on the stock exchange.
• Labor market: the one that is constituted by the offer and the demand of work, in this the offering individuals and the possible subordinates are related.
• Raw materials market: one in which resource exchange operations are carried out, that is, non-manufactured goods.
• Informal market: one in which its operations are carried out irregularly since it does not follow conventional legal processes or they are not regulated by any law.
• Computer market: one that bases its operations through digital platforms, and not through physical means. For this, the supplier offers its products virtually and consumers are in charge of acquiring them without the need for physical contact with the seller or the entity.
• Retail market: one whose sales volume is low, usually units.
• Wholesale market: one whose sales volume is high, generally this type of market lowers prices as a strategy to reach a greater number of customers.

market examples

Here are some market examples:

• The set of companies that purchase inputs in an industry located in a specific geographic area in southern China.
• The group of merchants in charge of distributing second-hand toys for children, who make up the flea market near the central park.
• Marcelo buys the grass for his business from a wholesale market, which sells him large quantities at a lower price.
• Camilo's company is analyzing the idea of ​​entering the international market since in the last 7 years it had very good sales in the national market.

 

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