Determination of the real market value of an operating enterprise. Classical model: basic postulates and conclusions Real and ideal market structures

Competition.

In a market economy, the economic realization of property is a process that goes far beyond the boundaries of individual activity. It involves complex interaction between many individuals and legal entities and the presence of numerous contradictions. One of the most significant means of resolving these contradictions is competition.

Competition is the rivalry between market participants for the best conditions for the production and sale of products. We can say: no competition - no market, no controllability.

Being an indispensable condition for the existence of the market and the implementation of its functions, competition takes on various forms, each of which is an effective lever for regulating the economy.

Monopoly: concept, conditions of existence, factors of monopoly power. Types of monopolies

Monopoly in the narrow sense is the market dominance of one seller. However, in a broad sense, it refers to any dominant position of one or a group of persons in any field of activity.

In particular, in economics there are four variants of the monopoly position of enterprises, the monopoly itself, oligopoly, monopsony and oligopsony.

The main signs of monopolism in production and in the market are the following three:

• - high concentration of economic activity in the hands of one or several merged firms.
• - dominant, that is, dominant, position of these firms in the market for certain goods
• - establishing monopoly prices that are inflated when selling or undervalued when buying goods and, thanks to this, obtaining excess profits for oneself.

The essence of the self-interested actions of the monopolist comes down to the fact that, by deliberately reducing the number of its sales and thereby creating an artificial shortage in the market, it achieves a price increase. In contrast, the monopolist, on the contrary, reduces purchases from its suppliers (say, grain from farmers), creates artificial difficulties for them in selling products, thereby forcing them to reduce prices.

Based on their origin, there are two main types of monopoly: natural and artificial. Natural monopoly arises and exists naturally, according to objective conditions. For example, in industries (automotive, gas, aluminum), where large-scale production is economically justified, providing greater efficiency, low costs, and therefore the ability to buy products at lower prices. Or where it is more expedient to have a single economic complex (city metro, water supply, communications), since the division of these complexes into separate competing enterprises would lead to unjustified duplication of capital structures and increased costs. Finally, monopoly is natural in the extraction of rare minerals, the production of rare varieties of tea, grapes, in the field of original artistic crafts, etc.

An artificial monopoly is another matter. This is a “man-made” monopoly, specially created by concentrating certain economic activities in someone’s hands. At the same time, in order to gain market power and super-profits, strong companies either suppress their competitors (using, say, dumping); or carry out a so-called hostile takeover of rivals (buying up their shares, sometimes anonymously); or voluntarily unite with each other (usually through mutual exchange of shares) into various unions, so as not to compete, but to own the market together in an orderly and profitable manner. Historically, there have been three main forms of monopolistic alliances: cartels, syndicates and trusts. The main differences between them are the breadth of agreements between the participants and the “density” of their association. So, the simplest and still widespread form is a cartel. Its participants (producing homogeneous products - oil, sugar, coffee, bananas, etc.) agree on the division of markets, trade quotas and price levels (who sells, where, how much and how much). At the same time, they fully retain their economic independence - both production and commercial (trading).

However, the civilized world seeks to limit cartel agreements. Under these conditions, monopolists can resort, for example, to collusion (tacit agreement with each other) or use so-called price leadership (the leading firm in a given industry sets the desired price level, and the rest “tacitly” follow it).

In order to increase income, other pricing “tricks” are also used. Thus, for related products that complement each other (say, a printer and paint for it), a “system of linked prices” is established: the price for the main product (printer) is relatively low (to stimulate its sales), and for the accompanying product (paint) it is inflated ( to receive compensating excess profits). Another example: monopolists first sell new products at higher “skimming yen” (for “select”, rich buyers), and then they use lower “penetration prices” to win the wallets of the general public.

The second, closer form of union is * a syndicate. It, like a cartel, also usually unites producers of homogeneous products. But in addition to their cartel agreement (on quotas and prices), they organize joint sales of products and the purchase of raw materials through a common trading network (the commercial independence of the participants, therefore, is lost here).

Finally, the third and closest monopoly union is *trust. The enterprises included in it are united completely under a single management. It was these giant super-monopolies that were typical of the economy of the former USSR. Suffice it to name the famous Aeroflot, numerous city associations (household services, trade in bakery products, canteen trusts, etc.), sectoral ministries and central administrations with their strict centralized management. All of them were absolute monopolists in their fields and dominated consumers. Trusts are the most powerful and antisocial manifestation of monopolism, which is why today they are prohibited in most countries of the world.

Sometimes so-called concerns may also be among the monopolists. * Concern (from English - firm, enterprise) is the main and very effective form of modern business associations. Usually it is a large diversified (diversified) economic complex, which may include industrial, commercial, banking and other enterprises, sometimes scattered across many countries of the world.

Their unification around itself is ensured by a special institution, the so-called holding - the parent company that owns the shares of the group's participants and thereby influences their activities.

Many concerns rely on a dense network of small and medium-sized enterprises and achieve high efficiency, primarily through flexible maneuvering of capital and directing it to the most profitable sectors of the economy. At the same time, a monopoly may develop in certain areas of the concern's activities.

In conclusion, it is important to mention such a special form of economic unions as a consortium. This is a temporary association of industrial, banking and other companies to implement joint large business projects (construction of a tunnel, railway, creation of a new airliner, space station, etc.).

The foundations of the classical model were laid back in the 18th century, and its provisions were developed by such outstanding economists as A. Smith, D. Ricardo, J.-B. Say, J.-S. Mill, A. Marshall, A. Pigou and others.

The main provisions of the classical model are as follows:

• The economy is divided into two independent sectors: real and monetary, which in macroeconomics is called the principle of “classical dichotomy”. The monetary sector does not influence real indicators, but only records the deviation of nominal indicators from real ones, which is called the principle of “neutrality of money”. This principle means that money does not affect the situation in the real sector and that all prices are relative. Therefore, in the classical model there is no money market, and the real sector consists of three markets: the labor market, the debt market and the goods market.
  • All real markets have perfect competition, which corresponded to the economic situation at the end of the 18th century and throughout the 19th century. Therefore, all economic agents are “price takers”.
  • Since all these markets are perfectly competitive, all prices (i.e. nominal values) are flexible. This also applies to the price of labor - the nominal wage rate; and to the price of borrowed funds - the nominal interest rate; and to the price of goods. Price flexibility means that prices change, adapting to changes in market conditions (i.e. changes in the ratio of supply and demand) and ensure the restoration of disturbed equilibrium in any of the markets, and at the level of full employment of resources.
  • Since prices are flexible, equilibrium in markets is established and restored automatically; the principle of “invisible hand”, derived by A. Smith, the principle of self-balancing, self-regulation of markets (“market-clearing”), applies.
  • Since equilibrium is ensured automatically by the market mechanism, no external force or external agent should interfere in the process of regulating the economy, much less in the functioning of the economy itself. This is how the principle of state non-interference in economic management was justified, which was called “laissez faire, laissez passer”, which translated from French means “let everything be done as it is done, let everything go as it goes.”
  • The main problem in the economy is the limited resources, therefore all resources are fully used, and the economy is always in a state of full employment of resources, i.e. their most effective and rational use. (As is known from microeconomics, the most efficient use of resources among all market structures corresponds precisely to the system of perfect competition). Therefore, the output volume is always at its potential level (the level of potential or natural output, i.e. output at full employment of all economic resources).
  • Limited resources make production the main problem in the economy, i.e. aggregate supply problem. Therefore, the classical model is a model that studies the economy from the aggregate supply side (“supply-side” model). The main market is the resource market, and, first of all, the labor market. Aggregate demand always corresponds to aggregate supply. The so-called “Say’s law” operates in economics, proposed by the famous French economist of the early 19th century, Jean-Baptiste Say, who argued that “supply generates adequate demand,” since each person is both a seller and a buyer; and his expenses are always equal to his income. Thus, the worker, on the one hand, acts as a seller of an economic resource of which he is the owner, i.e. labor, and on the other hand, the buyer of goods and services that he purchases with the income received from the sale of labor. The amount a worker receives in wages is equal to the value of the product he produced. (The condition for maximizing profit for a perfectly competitive firm, as is known from microeconomics: MC = МR (marginal costs are equal to marginal revenue), i.e. W = P * MPL, where W is the nominal wage, P is the price of products produced by the firm and MPL – marginal product of labor). And his income is equal to the amount of expenses. The firm is also both a seller (of goods and services) and a buyer (of economic resources). The income received from the sale of its products is spent on the purchase of factors of production. Therefore, there can be no problems with aggregate demand, since all agents completely convert their income into expenses.
  • The problem of limited resources (increasing quantity and improving quality) is being resolved slowly. Technological progress and expansion of production capabilities is a long, long-term process. All prices in the economy do not immediately adapt to changes in the relationship between supply and demand. Therefore, the classical model is a model that describes a long-term period (“long-run” model).

  Absolute price flexibility and mutual balancing of markets is observed only in the long term. Let's look at how markets interact in the classical model.

  There are three real markets in the classical model: the labor market, the market for borrowed funds and the goods market (Fig. 1.)

  Let's consider the labor market (Fig. 1.(a)). Since in conditions of perfect competition resources are fully used (at full employment level), the labor supply curve (LS – labor supply curve) is vertical, and the volume of labor supplied is equal to LF (full employment). The demand for labor depends on the wage rate, and the relationship is inverse (the higher the nominal wage rate (W - wage rate), the higher the costs of firms, and the fewer workers they hire). Therefore, the labor demand curve (LD – labor demand curve) has a negative slope.

  Initially, equilibrium is established at the intersection point of the labor supply curve (LS) and the labor demand curve (LD1) and corresponds to the equilibrium nominal wage rate W1 and the number of employees LF. Suppose that the demand for labor decreases and the labor demand curve LD1 shifts to the left to LD2. At the nominal wage rate W1, entrepreneurs will hire (demand for) a number of workers equal to L2. The difference between LF and L2 is nothing more than unemployment. Since there were no unemployment benefits in the 19th century, according to representatives of the classical school, workers, as rational economic agents, would prefer to receive a lower income than not receive any. The nominal wage rate will fall to W2 and the labor market will return to full LF employment. Unemployment in the classical model is therefore voluntary, since it is caused by the worker’s refusal to work for a given nominal wage rate (W2). Thus, workers voluntarily condemn themselves to an unemployed state.

  The market for borrowed funds (Fig. 1.(b)) is a market where investments (I - investment) and savings (S - savings) “meet” and the equilibrium interest rate (R - interest rate) is established. The demand for borrowed funds is made by firms, using them to purchase investment goods, and the supply of credit resources is carried out by households, lending their savings. Investments negatively depend on the interest rate, since the higher the price of borrowed funds, the lower the investment costs of firms, the investment curve therefore has a negative slope. The dependence of savings on the interest rate is positive, since the higher the interest rate, the greater the income received by households from lending their savings. Initially, equilibrium (investment = savings, i.e. I1 = S1) is established at the interest rate R1. But if savings increase (savings curve S1 shifts to the right to S2), then at the same interest rate R1, part of the savings will not generate income, which is impossible provided that all economic agents behave rationally. Savers (households) will prefer to receive income on all their savings, even at a lower interest rate. The new equilibrium interest rate will be established at the level of R2, at which all credit funds will be used in full, since at this lower interest rate investors will take out more loans and the amount of investment will increase to I2, i.e. I2 = S2. Equilibrium has been established, and at the level of full employment of resources.

  In the goods market (Fig. 1.(c)), the initial equilibrium is established at the point of intersection of the aggregate supply curve AS and aggregate demand AD1, which corresponds to the equilibrium price level P1 and the equilibrium production volume at the level of potential output - Y*. Since all markets are connected to each other, a decrease in the nominal wage rate in the labor market (which leads to a decrease in income) and an increase in savings in the capital market cause a decrease in consumer spending, and therefore aggregate demand. The AD1 curve shifts to the left to AD2. At the previous price level P1, firms cannot sell all of their products, but only part of it, equal to Y2. However, since firms are rational economic agents, under conditions of perfect competition they will prefer to sell the entire volume of production produced, even at lower prices. As a result, the price level will decrease to P2, and the entire volume of production produced will be sold, i.e. equilibrium will again be established at the level of potential output (Y*)

  The markets balanced themselves due to price flexibility, and equilibrium in each market was established at the level of full employment of resources. Only the nominal indicators changed, while the real ones remained unchanged. Thus, in the classical model, nominal indicators are flexible, and real indicators are rigid. This applies to both the real output volume (still equal to the potential output volume) and the real income of each economic agent. The fact is that prices in all markets change in proportion to each other, so the ratio W1/P1 = W2/P2, and the ratio of nominal wages to the general price level is nothing more than real wages. Consequently, despite the fall in nominal income, real income in the labor market remains unchanged.

  Real income to savers (the real interest rate) also remained unchanged because the nominal interest rate fell in the same proportion as prices. The real income of entrepreneurs (sales revenue and profits) did not decrease, despite the fall in the price level, since costs (labor costs, i.e. the nominal wage rate) decreased to the same extent. At the same time, the fall in aggregate demand will not lead to a fall in production, since the decline in consumer demand (as a result of a fall in nominal incomes in the labor market and an increase in the amount of savings in the capital market) will be compensated by an increase in investment demand (as a result of a fall in the interest rate in the capital market). Thus, equilibrium was established not only in each of the markets, but there was also a mutual balancing of all markets with each other, and, consequently, in the economy as a whole.

  From the provisions of the classical model it followed that protracted crises in the economy are impossible, and only temporary imbalances can occur, which are gradually eliminated by themselves as a result of the action of the market mechanism - through the mechanism of price changes.

  But at the end of 1929, a crisis erupted in the United States that engulfed the leading countries of the world, lasting until 1933 and called the Great Crash or Great Depression. This crisis was not just another economic crisis. This crisis showed the inconsistency of the provisions and conclusions of the classical macroeconomic model, and above all the idea of ​​a self-regulating economic system. Firstly, the Great Depression, which lasted four long years, could not be interpreted as a temporary imbalance, as a temporary failure in the mechanism of automatic market self-regulation. Secondly, what kind of limited resources, as a central economic problem, could be discussed in conditions when, for example, in the USA the unemployment rate was 25%, i.e. one in four was unemployed (a person who wanted to work and was looking for work, but could not find it).

  The causes of the Great Crash, possible ways out of it and recommendations for preventing similar economic disasters in the future were analyzed and substantiated in the book by the outstanding English economist J.M. Keynes, “The General Theory of Employment, Interest and Money,” published in 1936. The result of the publication of this book was that macroeconomics became an independent section of economic theory with its own subject and methods of analysis. Keynes's contribution to economic theory was so great that the emergence of the Keynesian macroeconomic model, the Keynesian approach to the analysis of economic processes, was called the “Keynesian revolution.”

  But it should be borne in mind that the inconsistency of the provisions of the classical school is not that its representatives, in principle, came to the wrong conclusions, but that the main provisions of the classical model were developed in the 19th century and reflected the economic situation of that time, i.e. era of perfect competition. But these provisions and conclusions did not correspond to the economy of the first third of the twentieth century, which was characterized by imperfect competition. Keynes refuted the basic premises and conclusions of the classical school by building his own macroeconomic model.

Market structure is a complex concept that has many aspects. It is determined by the nature of the objects of transactions on the market. There are markets for services and products, factors of production (capital, labor, land), durable goods (more than a year) and non-durable goods (up to one year). When classifying market structures, one should rely on the definition of the nature of the product and the number of sellers.

Market structure

Market structure indicates the number of sellers and buyers, their share in the quantity of goods sold and purchased, the degree of standardization of products and ease of entry into and exit from the market.

Perfect competition and pure monopoly are the two extremes that market structures have. Only one company in a purely monopoly structure sells the entire supply of a particular product; the emergence of competitors is impossible.

Perfect competition is exactly the opposite. In reality, markets fall between these two extremes. Nevertheless, limiting cases are useful for understanding a variety of problems and understanding the intermediate options that market structures have.

Signs by which markets can be divided and their classification

The concept of “market” often implies a combination of many types and market types, which differ from each other in various ways. There is no generally accepted classification, but despite this, markets can be divided into groups according to certain criteria: spatial, functional, organizational. The following groups are distinguished according to organizational characteristics, that is, according to the degree to which competition is limited:

• perfect competition;
• the market is purely monopolistic;
• the market is oligopolistic;
• monopolistic competition.

Market structures and competition

There are several market models based on the degree of monopolization (restrictions on competition). Competition is a very important factor that influences the behavior of consumers and producers. It is determined by the extent to which market participants can influence the prices of goods sold on it. The less this influence, the more competitive the market is considered.

A brief description of the models can be depicted as follows. A very large number of small firms exist in conditions of perfect (pure) competition. They produce the same (standardized) product; there are no barriers to entry into one industry or another. In other words, the product can be released by any willing company.

The conditions of the market structure of a pure monopoly, on the contrary, presuppose the presence of a single firm as a seller, an undifferentiated product, as well as various barriers that exist to the entry of manufacturers into the industry.

What is characteristic of monopolistic competition? A fairly large number of large firms that produce a differentiated product (for example, shoes, clothing), as well as a fairly free entry into one or another industry.

Oligopoly is a market structure where a small number of large sellers operate, who can influence the cost of goods and the volume of supply. In addition, it is characterized by the difficulty of entering the relevant industry.

Classification of markets from the point of view of buyers

Let us note, before taking a closer look at the various market structures, that this classification is based on the number of sellers and their behavior. However, as we know, there are two subjects in the market - buyers and sellers. From the point of view of buyers and their number, the following types are distinguished:

• monopsony, in which only one buyer dominates the market and there are many sellers (a rather unusual situation, extremely rare);
• oligopsony, when there are several large buyers who can dictate their terms to the market, as well as a competitive market with many buyers represented on it.

The classification of market structures is most often carried out on the basis of competitiveness. From this point of view, there are 2 varieties - the market of perfect (free) competition, and imperfect, which is divided, in turn, into oligopolistic, monopolistic and monopolistic competition market.

Perfect competition

The main features that define this market are the following:

• many small firms that produce homogeneous (homogeneous) goods;
• the absence of any restrictions on the flow of capital between industries;
• complete information, perfect knowledge of the market by producers and consumers;
• lack of price control on the part of consumers and producers.

Perfect competition occurs in areas of activity in which there are quite a lot of small buyers and sellers of the same (identical) product, so none of them can influence its price. The price is determined here by the free play of supply and demand in accordance with the laws of market functioning. The existence of a large number of sellers and buyers means that each of them has the same information about the market and finds the existing price level, which he cannot change, since the market itself dictates the price of the product. This situation allows new manufacturers to begin their activities on equal terms with existing sellers. Manufacturers, on the other hand, can leave the market without any hindrance. Freedom of movement means a constant change in the number of producers. The remaining sellers, at the same time, cannot control the market, since there are very many of them and they are small participants.

Imperfect competition

Markets where either sellers or buyers can influence the price are called imperfectly competitive. For example, these are markets for cars, specialty restaurant dishes, etc.

Individual sellers in imperfectly competitive markets can influence the price of the products they produce. Of course, in an effort to maximize profits, manufacturers take this possibility into account. In practice, the most important features are the three types of markets with imperfect competition: monopoly, oligopoly and monopolistic competition. In each of them, as in perfectly competitive markets, there are many sellers, and none of them can influence the market economy through their own actions.

Imperfect competition takes different forms. The classification of market structures related to it includes four main forms:

1. Pure monopoly. In this case, production is concentrated on only one company or corporation producing one or another type of product. Of course, the manufacturer can control very significantly the prices of the goods.
2. Duopoly. It occurs when the production of a homogeneous product is carried out by two firms. Each of them can only partially control prices.
3. Oligopoly. This is a market structure in which a fairly small number of firms operate. At the same time, the ability to control prices is more limited than in a duopoly. Corporations (firms) produce homogeneous products with little possible differentiation.
4. Monopolistic competition. If it exists, there are many manufacturers who produce products that are differentiated, but functionally homogeneous. Differentiation in this case can be both real and imaginary. There are very weak price controls.

Situations in real markets

From the above it is clear that market structures have two poles. The first is a perfectly competitive market. The other pole is pure monopoly. Both should be considered as very conditional. The fact is that real markets may be located closer to the first or second pole. It is very difficult to recognize the existence of a pure monopoly. After all, for products produced by a monopoly, it is almost always possible to find a substitute product (substitute).

In addition, in the conditions of international open trade, instead of a national product, it is possible to purchase a similar foreign product, which will be close to it. On the other hand, it is difficult to imagine a market structure that corresponds to pure competition. The agricultural market is considered to meet its requirements. This is largely true. However, with limited plots of land, it is not easy to meet the requirements for free entry into it. In addition, manufacturers in this market usually do not enter it directly. They work on exchange orders or under contracts.

Natural monopoly

In connection with the above, it can be noted natural monopoly. This is a pure monopoly, but at the same time it is not caused by artificial barriers to entry into a particular industry, but by reasons related to efficiency, when the activity of one company is obviously more effective than the presence of competing organizations. There are many examples of natural monopoly: local provision of gas, electricity, telephone services, etc.

Pure monopoly

Describing the main market structures, let's say a few words about pure monopoly. This is a situation in which there is only one seller of a product that has no close substitutes. This term also means the only seller of this product. In sharp contrast to a competitive market is a market dominated by a monopoly. There is only one source of supply from buyers who want to purchase the monopolist's product. This company has no rival sellers who compete with it in the market.

Pure monopoly as a concept is abstract. There are very few foods (if any) for which no substitute can be found. For example, the postal service is only at first glance the only supplier providing letter delivery services. However, they can be replaced by telecommunications, including electronic messaging, as well as express delivery services.

Oligopoly

Let us continue to describe the types of market structures. Oligopoly presupposes the presence of a small number of producers of a product in the market, acting together. A characteristic feature is that they are few in number and can individually influence the market. Duopoly is the simplest case of oligopoly.

There are 1st and 2nd types of oligopoly. The first type of oligopoly is otherwise called pure. It is found in industries in market structures characterized by large enterprise sizes and completely homogeneous products. An example is oil production enterprises. Differentiated, or the second type of oligopoly, is a market structure where there are differentiated products that are sold by several producers. Let's move on to a description of monopolistic competition.

Monopolistic competition

When highlighting the types of market structures, it should also be noted monopolistic competition. It occurs when many sellers compete with each other in order to sell a differentiated product on the market, and new manufacturers may emerge.

The following characteristic features of monopolistic competition can be identified.

1. The product of a company selling on the market is an imperfect substitute for the product sold by other manufacturers.
2. There is a fairly large number of sellers, and each of them satisfies a small, but at the same time not microscopic, share of the demand for a particular type of product. The size of the shares of firms under monopolistic competition exceeds 1%. Each of them typically accounts for from 1 to 10% of all sales on the market.
3. Sellers operating in the market do not take the reactions of rivals into account when choosing what price to set for their goods or when determining annual sales volumes.
4. There are conditions for free entry and exit of various manufacturers into the market. New sellers are attracted by favorable conditions. Meanwhile, entering the market is not very easy, as with perfect competition. New sellers often struggle with services and brands that are new to buyers. Consequently, firms with an established reputation have the opportunity to maintain an advantage over new competitors.

These are the basic market structures. As you can see, there are quite a lot of them, and some of them are not found in their pure form. Markets and market structures are core topics in economics and are worth studying as much as possible.

The activities of a modern enterprise or firm in the process of commodity production, when the basis for making economic decisions are market requirements, the real requests and needs of buyers for goods and services, and the production and sales capabilities of a given enterprise or firm. There are more than 200 definitions of marketing, many of which attempt to provide a comprehensive description of it. For example, the American Marketing Association (AMA) adheres to the following position: “Marketing is the process of planning and managing the development of products and services, pricing policies, promotion of goods to customers and sales, so that the resulting variety of benefits leads to the satisfaction of the needs of both individuals and organizations , and society in

Market for real goods 317

R 154 Market for real goods - 317

As soon as real market mechanisms begin to work, real competition arises in a particular market, enterprise managers will definitely need information about the cost of specific types of products and activities, the possibility and need will arise to divide costs into direct and indirect, calculate profitability and other management operations.

Let's look at Fig. 18-15, which shows a graph of total savings (supply of loan capital) together with a graph of total investment (demand for loan capital) in the same coordinate plane. They intersect at the point where the interest rate is equal to r°. At a given interest rate, the supply of loanable capital equals the demand for it. In other words, the expected level of saving equals the expected level of investment. At the real interest rate r, the capital market is in equilibrium. The market for real goods is also in a state of equilibrium at a given interest rate, since the equality of savings and investments means that all leakages from the stream of real income (savings) are re-infused into this stream in the form of investments, i.e. the entire part of income that is saved households, is spent by firms on investment when the interest rate is r - Therefore, at a given real interest rate, households and firms buy all the goods and services produced at full employment.

By consistently expanding the securities market, we could now delegate all the work of organizing purchases and sales to Russian banks. Special holding companies created at the initiative of enterprises, whose main function will be financial management, can also provide assistance in this matter. By the way, and this is important, abroad the firms and enterprises themselves do not participate in the exchange; their interests are always represented by either a bank, or a holding or brokerage company that is members of the exchange. Not everyone can become such a member; their number is regulated, and their reputation must be impeccable. Plus, membership costs money. On the New York Stock Exchange, the price of a seat ranges from 450 to 6,000 thousand dollars, and the number of members is almost constant - 1,469. FUTURES EXCHANGE - a modern form of organization of commodity exchanges. On a futures exchange, trading is carried out exclusively in futures contracts. Appeared in the second half of the 19th century. The emergence and development of B. f. due to the fact that it made it possible to reduce the risk of unfavorable fluctuations in prices for the circulation of capital, reduce the amount of reserve capital required in case of unfavorable conditions, accelerate the return in cash of advanced capital, reduce the cost of trade lending, and reduce distribution costs. Trade on B.f. in comparison with the exchange of real goods, they are distinguished by the predominantly fictitious nature of transactions (only 1-2% of transactions are completed by the delivery of goods, and the rest - by payment of the difference in prices); mainly indirect connection with the market of real goods through hedging; complete unification of all terms of contracts, except for price and term deliveries are impersonal transactions, since they are regulated not between an individual buyer and seller, but between them and the clearing house. Transactions on futures exchanges are concluded with contracts for both goods and currencies, stock indices, interest rates, etc. The volume of transactions on all financial markets. in the world exceeds 10 trillion. Doll.

An effective method for obtaining information was to survey the sales managers of subsidiaries located in the most important European markets of RS, including the sales managers working at the head office in Rouen. The main purpose of the survey was to compare assessments of competitors' participation in the machining sector, obtained on the basis of a marketing database, with their own assessments arising from experience in this market. Often managers had information obtained from various unofficial sources. During each visit of consultants to the heads of sales departments, issues related to the qualitative aspects of the market and its development during the last year of bankruptcies of competitors, new market participants, real or potential price wars, stagnation in the local economy, etc. were discussed.

REAL COMMODITIES MARKET - A MARKET in which actual commodities are traded as opposed to futures contracts. On the REAL GOODS MARKET, transactions are concluded with delivery from a warehouse, with immediate delivery and with delivery on time.

Thus, in theory, it does not matter which of the second differences we use. The resulting estimates are equivalent. However, the real market is a different matter. Real option prices may not satisfy the basic properties of probability distributions. Three factors can be decisive here. Firstly, this is just a game of chance; secondly, more complex relationships between risk and profitability of instruments are reflected; thirdly, the interest rate is not zero.

The Fed is a space squad. The Fed can act as a space force. In any case, she meets three basic criteria: she has power, is surrounded by mystery and has an office in New York. Some observers even believe that the Fed is capable of controlling the stock market - through real or symbolic actions, through preventative measures or through inaction. However, sensible people understand how ridiculous this is - the market obeys only solar activity and follows sunspots.

It is much more difficult to manipulate the cash trading market than futures; it requires much more capital (due to the lack of leverage) and more time. Therefore, the return on invested capital is less if attempts are made to manipulate the cash market. In addition, the cash position is less liquid compared to the futures position. As a result, market manipulation of real financial instruments is rarely attempted and rarely successful.

An important feature of the classical macroeconomic model is the principle of money neutrality. It assumes the absence of any impact of the money supply on real production. In the classic model, market agents need money only to service transactions, that is, to perform a purely technical function in the buying and selling process. On this basis, the classics formulated the concept of classical dichotomy - a system of functioning of two parallel markets, real and money, the balance between which is maintained through automatic stabilizers. Hence the conclusion was drawn about the inappropriateness of state intervention in economic life.

Minor. Through the system of regulation of the real funds market.

The main indicator of the real funds market

It is clear that in order to achieve a balanced state of the leasing procedure, it is necessary to have sufficiently developed related sectors - banking, the market of real funds (including equipment) and insurance. In addition, it would be more correct to say that the stages (stages) of development of these markets should be compared with each other. As can be seen from the characteristics proposed earlier, there is not only incomparability between the phases of development of the banking, real and insurance markets, but also the absence of a unified regulatory policy aimed at balancing their functioning and development (see Fig. 2.13).

Equity (corporate) financing Commercial banks Institutional investors Corporations Organizations Variability in the use of investments by a corporation (organization) Non-targeted nature of investments Work only on the securities market, and not on the market for real programs High level of investor risk

For example, in the cellular communications market there is an equal struggle between two sides. However, if there is a state-owned company that dominates the industry and continues to receive subsidies or receive unfair government benefits, no venture capital-backed innovation will emerge. Government funds can be used to support venture capital if macro problems can be solved. In addition, meaningful financial reports on a regular basis will also be helpful. Due to incorrect accounting entries, some small firms will not be able to enter the stock market. Real accounting rework is a significant burden on the firm (until it reaches a certain size). Firms cannot afford to go back and redo all their reports. A financial report that truly reveals information makes a difference because the investor actually has confidence in the company.

In order to streamline this spontaneous practice, the USSR Council of Ministers in October 1988 adopted a resolution on the issue of securities by enterprises and organizations, which legitimized the status of the so-called labor collective shares intended for employees of collectives, and shares of enterprises and organizations for placement among legal entities. Government decisions were also taken to transfer individual enterprises to a joint-stock form of ownership, for example JSC KamAZ, JSC Permavia, etc. This was the next step towards reviving the market for real equity securities. The process of establishing a joint-stock form of ownership in general terms was completed with the adoption by the USSR Council of Ministers in mid-1990 of the well-known resolution approving the Regulations on joint-stock companies and limited liability companies and the Regulations on securities. A little more than a year later, about 1.5 thousand joint-stock companies and LLCs were registered in the USSR, the total authorized capital of which in the current price scale exceeded 25 million rubles.

Charities (such as Oxfam) have long purchased coffee from small producers, processed it and sold it through their own shops across the country. Since distribution through charity stores only covered a small market, this "ampaign" type of coffee was really intended for very die-hard followers who were willing to sacrifice for a good cause.