What Is a Market System?

Market system A group system composed of various types of markets. Including the two sub-systems of the commodity market and the service market. The commodity market sub-system consists of the market for living materials, the market for means of production, and the real estate market; the sub-system for the service market consists of financial markets, technology markets, information markets, consulting markets, transportation markets, post and telecommunications markets, insurance markets, living services markets, and entertainment Market, tourism market, education market, art market, labor market, etc. ^[1]

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Market system A group system composed of various types of markets. Including the two sub-systems of the commodity market and the service market. The commodity market sub-system consists of the market for living materials, the market for means of production, and the real estate market; the sub-system for the service market consists of financial markets, technology markets, information markets, consulting markets, transportation markets, post and telecommunications markets, insurance markets, living services markets, and entertainment Market, tourism market, education market, art market, labor market, etc. ^[1]

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The market system has the following basic characteristics:

Introduction to the market system

To play the fundamental role of the market mechanism in the allocation of resources, we must cultivate and develop a market system. The market system includes commodity markets and factor markets. Commodity markets include markets for consumer goods and markets for means of production. Factor markets include capital markets, labor markets, real estate markets, technology markets, and information markets.

Market system consumer goods market

The consumer goods market is a commodity market that exchanges consumer goods that are used to meet consumers' personal life consumption needs and social consumption needs. Such as food, clothing, daily necessities, etc. The consumer goods market is the foundation of the entire market system, and all other markets are derived from it. Therefore, the consumer goods market is the final market realization process in social reproduction, and it reflects the opposite and unified relationship between the final supply and the final demand of society.

The consumer goods market has the following characteristics: (1) the consumer goods market involves millions of households and all members of society, and everyone in the society is a consumer; (2) the consumer goods market is subject to social demand structures, forms of diversity, and variability It shows the characteristics of diversity and variability; (3) the market transaction volume may not be large, but the number of transactions may be large.

The consumer goods market is closely related to people's daily lives. It reflects the ultimate market realization of the social reproduction process and reflects the changes in the final consumer demand. As a final product market, the consumer goods market is closely related to other commodity markets, and it reflects the development of the entire national economy. The role of the consumer goods market: (1) the development of the capital market is always constrained by the consumer goods market. When the consumer goods market is booming, supply and demand will drive social investment to increase, and thus activate the capital market; (2) increasing consumer demand and expanding market trading targets To further stimulate the increase in supply and the expansion of production scale, this will also lead to an increase in labor demand in the labor market. The satisfaction of the supply of consumer goods directly determines the quality of labor.

Market system production market

The means of production market is a market that exchanges commodities such as labor tools and labor objects that people need to use in the production of material information. For example, the raw materials, machinery and equipment, instruments, etc. required for production are the objects of the market for means of production.

Compared with the consumer goods market, the characteristics of the means of production market are: (1) Most of the commodities exchanged in the means of production market are primary and intermediate products, not final products. These commodities are mainly used in the production process, and the exchange is mainly between manufacturing enterprises, and its circulation breadth is smaller than that of consumer goods; (2) participants in market transactions are purely production sectors, which are productive consumption, large purchase quantities, and transactions Most of the methods are bulk transactions or order transactions, and the supply and marketing relationship is relatively fixed; (3) The market demand for the means of production is derived and induced. Because the means of production is not a final product, but only provides conditions for the production of consumer goods, the scale, type and quantity of demand for means of production depends on the demand for consumer goods in the society, so it is a demand derived from consumer demand.

In terms of the role of the market for means of production, it concentratedly reflects the supply-demand relationship between intermediate and primary products, provides material conditions for the production process of various enterprises, and plays an intermediary role in the process of social reproduction. Its supply and demand situation concentratedly represents the efficiency and proportion of the allocation of social material resources. Therefore, the more efficient the operation of the market for means of production, the smoother the operation of social reproduction. As a bridge linking the production process and the consumption process of means of production, its development means the expansion of social reproduction.

Market element market

The financial market is a place where the supplier and the demander of funds conduct financial financing and securities trading, and it is the sum of the relationship of lending and financing of monetary funds. In reality, the financial market can have fixed locations and corresponding working measures, or there can be no fixed locations. Participating traders use telecommunications and other means to contact and negotiate to complete transactions. Divided by the term of the transaction, the financial market that operates the currency financing business within one year is generally referred to as the money market, and the financial market that operates the lending and securities business of more than one year of medium-term funds is referred to as the capital market.

Financial market as an organic whole of value form and each element market constitutes interdependence and mutual restriction. Its role is mainly in the following aspects: First, through the purchase and sale of various financial assets, it provides the fund supplier and the fund demander with the opportunity for direct contact and multiple choices between the two parties, so it can efficiently raise and allocate funds. Secondly, through the financial market, the liquidity of financial securities can be increased, so that the scale and scope of social financing can be increased, and financing costs can be reduced. Thirdly, the development of the financial market is to use the deposit reserve ratio, rediscount rate, and open market for the central bank. Business and other means of macro-control, creating a role space and operating conditions. The central bank can formulate correct monetary policy, determine the amount of money supply and credit, ensure the need for key construction funds, and promote the adjustment of the economic structure based on economic and financial information in the financial market that sensitively reflects the supply and demand of market funds.

The labor market is a place where labor is exchanged, that is, a place where laborers who have the ability to work and economic agents who use labor in production and operation exchange places. It is the sum of the economic relations that allocate labor through the market. The labor market exchange relationship is represented by the exchange of labor and money.

Compared with the general commodity market, the labor market has the following characteristics: First, it is mainly a regional market. The labor market, like other commodity markets, should be a unified market across the country. However, due to the uneven development of social productivity in various regions, the coexistence of primitive handicrafts, traditional large machinery and modern technology industries, the disparity in the quality of labor forces, the existence of occupational prejudice, and the regional division, etc., have hindered the labor force across the country. Most of them can only be operated in the region, and only a few high-tech talents can be circulated nationwide. The main result is a regional market. The second is that the scope of labor entering the labor market is wide. All people who have the ability to work and are willing to work can enter the labor market. Due to the abundance of labor resources in our country, with the advancement of science and technology, continuous improvement of labor productivity, and the progress of economic system reforms, surplus labor has emerged in rural areas, plus wealthy personnel from state-owned enterprises and state agencies. Therefore, for a long time, our labor force Supply exceeds demand, forming a buyer's market. Third, the rational allocation of labor is mainly achieved through market movements and exchanges. The relationship between market supply and demand regulates the movement of social labor in various regions, departments and enterprises; labor compensation is affected by labor market supply and demand and competition. Supply and demand are realized on a voluntary basis. The behavior of labor market allocation will inevitably lead to structural unemployment caused by the inability of laborers to adapt to changes in the new economic structure.

Establishing a labor market is an effective means to achieve optimal allocation of human resources under the conditions of a market economy. The role of the labor market is to regulate the relationship between the supply and demand of labor, to adapt the proportion of labor to the means of production, to achieve a reasonable allocation of labor, to enable enterprises to increase labor productivity, improve economic efficiency, and ensure the normal progress of social reproduction.

The real estate market is a market that engages in real estate and real estate transaction activities. It is specifically divided into real estate market and real estate market. The real estate market is mainly engaged in the transaction and transfer of land use rights. The real estate market is mainly engaged in housing transactions and transfers.

The characteristics of the real estate market are: First, the operating objects are regional and non-current commodities. Second, real estate prices are floating. With the development of the economy, the income from differentials in construction sites has continued to rise, which has contributed to the rise in the price of land use rights and the rise in house prices. The third is monopoly. Because land is limited and priority places are more limited, this has caused a monopoly on land use rights.

The development of the real estate market is conducive to promoting the commercialization of housing and paid use of land. It is helpful to alleviate the contradiction between demand and supply, improve land utilization, prevent the loss of state-owned assets, and provide broad development opportunities for the construction technology, building materials industry, and other related industries. prospect.

The commodities exchanged in the technology market appear in the form of knowledge. It is a special commodity with multiple manifestations: in the form of software (programs, processes, recipes, design drawings, etc.); in the form of services such as consulting and training; and certain strategic ideas, predictive analysis, and planning opinions required by buyers And knowledge transfer can constitute technical commodities.

The characteristics of the technology market are: (1) technology commodities are knowledge commodities, which appear in the form of drawings, data, technical information, technological processes, operating skills, formulas, etc .; (2) technology commodity transactions are essentially the transfer of use rights; (3) ) Technology goods are transferred in special forms, often through transfer, consultation, communication, and appraisal. The exchange process is not completed until the buyer has mastered the technology. (4) The price of technology goods is difficult to determine, and prices are often negotiated between the buyer and seller. Technology markets play an important role in China's economic development. It has a virtuous circle relationship with the economic development of science and technology; it can promote the rapid transformation of scientific and technological achievements into realistic productive forces; it is conducive to the close integration of scientific research and production; it can promote the rational flow of scientific and technological personnel and optimize the reasonable allocation of scientific and technological personnel , Help reduce the waste of human resources.

Information is a reflection of the content, form, connection between things and their development and changes, and it generally manifests itself as signals, messages, intelligence, scientific research results, and materials. An information market is a place for information exchange that provides a variety of information to meet user needs. Most information can enter the market for exchange.

The particularity of the information commodity determines the characteristics of the information market, which is manifested as follows: First, the transaction activities are multiple. Since the information transaction is not a transfer of ownership but a right of use, the same information product can be sold multiple times and repeatedly within its effective time. The second is that exchange is indirect. That is, demanders do not necessarily obtain information through direct exchange, but can obtain information through radio, television, newspapers, and so on. Third, the transaction has a strong timeliness. With the passage of time and conditions, its use value will become invalid.

The development of the information market and the commercialization of information play an obvious and important role in social and economic development. First, it provides a large number of effective information resources for social production and circulation, which is conducive to promoting economic development. The second is to provide enterprises with necessary market demand information, which is conducive to improving their competitiveness and adaptability. The third is to provide consumers with information about the supply of goods, which is a favorable means to promote sales. The information market plays an intermediary role and is a bridge between production, supply, and sales. Information is an important resource for business management.