-effective bent on top of those whose own activities is valued particularly highly by the market and better paid, that allows to offer the goods to the highest bidder.system because of its operation also has a number of shortcomings, known in economic theory failures (weaknesses) market.main disadvantages of the market system are: a large gap between the incomes of the various sectors of the population, the inability of the system to produce a sufficient quantity of the so called public goods, the potential monopolization of the market , etc.such a system, the behavior of each participant is motivated by his personal interests: economic entity seeks to maximize their income on the basis of individual decisions.market system functions as a mechanism through which individual decisions and choices are made public and are coordinated. The fact that goods and services are produced and the resources available in a competitive environment means that there is a lot of independently existing buyers and sellers each product and resource. As a result of economic power widely scattered. Decisive economic progress was the freedom of entrepreneurial activity who have capital. There has been a new level of development human factor raquo ;, the main productive forces of society.and capitalist entrepreneur acted as legally equal market agents. The notion of free employee implies the buyer's right to freely choose their labor force, ie freedom of movement in and of the labor market. Like all, had exercised their goods and receiving the money, the employee should have freedom of choice of subjects and ways of meeting needs.downside of freedom of choice has a personal responsibility for maintaining the workforce in good condition, for the correctness of the decision , in compliance with the terms of the employment contract.is the mechanism to address the fundamental problems of economic development in the economic system? They are indirectly via price and market. Fluctuation in prices, a higher or lower level serves as an indicator of social needs. Based on the market situation, level and trends in prices, commodity producer to solves the problem of distribution of all types of resources by producing products that are in demand on the market.of pure capitalism, argue that this economic system is conducive to the efficient utilization of resources, stability of production and employment, rapid economic growth. That is why there is very little or no need for Government planning in government control and intervention in the economic process.the market system is the best way to find answers to a set of fundamental questions above? This is also a difficult question: either a full answer would inevitably goes beyond the facts and shall enter into the Kingdom of value judgements. But it follows that scientific answer to this question does not exist. The mere fact that there are many alternative methods of distribution of scarce resources, then there are a lot of different economic systems, provides clear evidence of discrepancies in estimates of the effectiveness of the market system.to all previous market system has proved to be the most flexible: it can adapt, adapt to changing internal and external conditions. In the course of a long evolution, mostly in the 20th century, the market economy with free competition has evolved into a modern market economy. Its main features are:
) the diversity in forms of ownership, which is still the leading place belongs to private ownership in its various forms (from labour to a large corporate, individual);
) deployment of scientific and technological revolution, a strong industrial and social infrastructure;
) greater impact on the national economy and the social sphere.developed market economies undergoing significant change management mechanism. Routine practices are further developed in the framework of individual firms in the form of a marketing management system. At the same time, at the macro-level development planning methods related to State regulation of the economy, up to the implementation of national programmers and plans.emerges as a means of active adaptation to market requirements. As a result, and economic development are key objectives of the new solution. Thus, the size and structure of the product is decided on the basis of marketing research firms, as well as the forecast development needs. Market forecast in advance allows you to reduce the release of long-lived products and move to a qualitatively new models and products. Marketing production management system gives you the capability to advance production lead individual costs of companies producing the bulk of goods of this type, in line with market pricesallenge of using resources within major companies through strategic planning. At the same time, the reallocation of resources to the development of innovative ...
