The concept of transactions leads to the concept of a market. A market is the set of actual and potential buyers of a product.
To understand the character of a market, imagine a primitive economy made up of four persons: a fisherman, a hunter, a potter, and a farmer. These trades people can cooperate in different ways to meet their needs.
In a self-sufficiency representation, they gather the needed goods for themselves. Thus the hunter spends most of the available time hunting, but also has to take time to fish, make pottery, and farm to obtain the other goods. The hunter is less efficient at hunting, and the same is true of the other trades people.
In a decentralized exchange representation, each person distinguishes the other three as potential "buyers" who make up a market. Thus the hunter may make individual trips to trade goods with each of the fisherman, the potter, and the farmer to exchange meat for their goods.
In a centralized exchange representation, a new person called a merchant emerges and sets up shop in a common area called a marketplace. Each tradesperson delivers goods to the merchant and trades for other needed goods. Thus the hunter transacts with one "market" to acquire all the needed goods, rather than with three other persons.
The merchant substantially reduces the number of required transactions required to achieve a given volume of exchange. In other words, merchants and central marketplaces increase the transactional efficiency of the local economy.
As the number of persons and transaction increases in a society, the number of merchants and marketplaces also increases. In advanced societies, markets need not be physical places where buyers and sellers interact. With modern communication and transportation, a merchant can advertise a product on late evening television, take orders from hundreds of customers over the phone, and mail the goods to the buyers on the following day without having had any physical contact with the buyers.
A market can develop around a product, a service, or anything else of value. For example, a job market consisting of unskilled people who are willing to offer their efforts in return for wages or products. Various services will blossom around a labor market to facilitate its functioning, such as employment agencies and insurance firms. Banking is another important market that emerges to meet the needs of people so that they can borrow, lend, save, and safeguard money. Donor markets can emerge to meet the financial needs of nonprofit organizations.
To understand the character of a market, imagine a primitive economy made up of four persons: a fisherman, a hunter, a potter, and a farmer. These trades people can cooperate in different ways to meet their needs.
In a self-sufficiency representation, they gather the needed goods for themselves. Thus the hunter spends most of the available time hunting, but also has to take time to fish, make pottery, and farm to obtain the other goods. The hunter is less efficient at hunting, and the same is true of the other trades people.
In a decentralized exchange representation, each person distinguishes the other three as potential "buyers" who make up a market. Thus the hunter may make individual trips to trade goods with each of the fisherman, the potter, and the farmer to exchange meat for their goods.
In a centralized exchange representation, a new person called a merchant emerges and sets up shop in a common area called a marketplace. Each tradesperson delivers goods to the merchant and trades for other needed goods. Thus the hunter transacts with one "market" to acquire all the needed goods, rather than with three other persons.
The merchant substantially reduces the number of required transactions required to achieve a given volume of exchange. In other words, merchants and central marketplaces increase the transactional efficiency of the local economy.
As the number of persons and transaction increases in a society, the number of merchants and marketplaces also increases. In advanced societies, markets need not be physical places where buyers and sellers interact. With modern communication and transportation, a merchant can advertise a product on late evening television, take orders from hundreds of customers over the phone, and mail the goods to the buyers on the following day without having had any physical contact with the buyers.
A market can develop around a product, a service, or anything else of value. For example, a job market consisting of unskilled people who are willing to offer their efforts in return for wages or products. Various services will blossom around a labor market to facilitate its functioning, such as employment agencies and insurance firms. Banking is another important market that emerges to meet the needs of people so that they can borrow, lend, save, and safeguard money. Donor markets can emerge to meet the financial needs of nonprofit organizations.
About the Author:
MELALEUCA REVIEW. Get a Detailed and Unbiased Review of the Melaleuca BUSINESS and Melaleuca INCOME Opportunity.
0 komentar:
Posting Komentar