Floor trading takes place on the classic market, where the market participants are personally present and exchange the available goods for money or for other goods ( real exchange). This has the advantage that the exchange objects can be handed over immediately. In the case of commodity exchanges , on the other hand, the market participants and the trading object goods are not present, which can lead to performance risks for the counterparties . In modern markets, there is even no geographical location; they take place as a virtual marketplace like in e-business or in organized trading systems .
Goods markets already existed in antiquity ; they emerged as so-called presence markets , on which the vendors present in person offered their physically available goods for sale to the buyers who were also present . Free market entry was common, and a market ban was usually given to enemies. For example, the exclusion of the Megarians from the Athens markets in 432 BC is seen as the cause of the outbreak of the Peloponnesian War . In addition to the agora ( ancient Greek ἀγορά , “market place”), the Roman agora was one of the first urban markets . Rome itself had the Forum Boarium ( Latin forum , “market” and Latin bos , “beef”) for meat, the Forum Holitorum for vegetables and the Forum Suarium for pigs. Another form was the Emporion ( ancient Greek ἐμπόριον , "trade and market place") as an independent market and trading center of a city, which acted as a transshipment point for foreign goods or was created as a trading post outside the mother country. The ancient form of real exchange on markets spread via Pompeii and Ostia to the Roman Timgad ( Algeria ). The German word “Markt” goes back to the Old High German “markāt”, which first appeared in 765 .
In the Middle Ages, the market participants negotiated the market prices . Market rights had been with the king since 629 at the latest , when the Merovingian Dagobert I allowed the church of St. Denis to hold a four-week market once a year near Paris . In the year 862, markets had to be approved by the foundation of market rights, even during the Carolingian times under King Charles the Bald . From the 12th century onwards, a public market was established in Paris, which was named " Place de Grève " ( German for "beach place" ) because of its proximity to the Seine .
The Loko contract consisted of in-stock, immediately deliverable, "tangible" goods. The markets had to be public in order to allow fair trade. Specially appointed market supervisors should keep an eye on the activities, warn deviating behavior and be the contact person for those affected. These were municipal employees who monitored compliance with the market regulations and took account of the market gap. Market differences were the taxes paid by traders and citizens to the market rulers. The market was the trading center of a city. Market communities had market rights in some regions.
With the Hanseatic League , trading centers such as Hanseatic cities with lively market operations formed from 1143 onwards . One of the first German-speaking market regulations is documented in 1190 for the Austrian city of Enns . In the 13th century there was in Nuremberg least 4 monitored Fairs ( Walpurgis market on May 1, Johannis Fair on June 24, Egidimesse on September 1 and the Michael Fair on September 29). Around 1253 there was a Berlin market and trade supervisory authority which, for example, punished incorrect measurements and weights with a fine and criminalized other market offenses (Schupfstuhl, Schimpfsteine). In the German Reich alone there were at least 5,000 periodic markets in around 500 locations up to the year 1500.
In view of the increasing trade in reasonable goods ( English commodities ), the commodity exchanges developed as a special form of the market. Some of the first commodity exchanges no longer functioned as floor exchanges. The first of its kind in the world was built in Bruges in 1409, it took place in front of the house of the rich merchant family van der Beurse ( Dutch beurs , "wallet"), the goods were not present. The oldest German commodity exchanges were established in Augsburg and Nuremberg in 1540 ; In 1560 the council issued trading rules for the Nuremberg Stock Exchange and affixed them to a board at the Herrenmarkt as market regulations for all to see.
Bazaars ( Persian بازار, DMG Bāzār , "market") originated in its current form for the first time in the 16th century in the Persian Tabriz , from where it spreads over the whole of Arabia ( Arabic سوق sūq ) spread. The governor Yazid ibn Hatim al-Muhallabihad already set up similar marketplacesduring his reign (771–787) inTripoli. In contrast to the European markets, for climatic reasons, the bazaars were mostly housed in vaulted buildings or in covered shopping streets. InIslam,the guardians of morals ( muhtasib ) were responsible for monitoring prices , goods and actors. Adam Oleariusreported in 1656 in his travelogues about the Persian bazaars.
While markets were typically local markets, where people supplied themselves with the goods they needed immediately, international markets also emerged very early. This long-distance trade was more difficult than local trade, but it could also be very profitable. An original form of the exchange of goods between traders were the fairs ( English fair , Italian feria ). These took place periodically. Most of the European dealer markets were in the area between Italy and Flanders. At these fairs, goods from the south, including spices from Asia, were exchanged with goods from the north, especially wool from England and Flanders. These fairs had their heyday between the 11th and 14th centuries. The trade fairs were not just places of trade. A number of festive and other activities took place on them, which framed the actual exchange of goods.
Vitten (singular: Vitte ; "Heringsanlandeplatz") developed in the 13th century in the Baltic Sea region. The herring was trade in the Middle Ages an important commercial branch, but the herring for all segments of the population was an important for the nutrition and affordable source of protein . Large herring deposits in the area of the Danish-Swedish Baltic coast led to seasonal trading locations, the Vitten , which were owned by individual Hanseatic cities . In the respective fishing season, up to twenty thousand people (merchants, craftsmen, fishermen, cooperatives , etc.) settled there temporarily . The objects of activity in these places were the herring fishing, the gutting and curing of the fish in oak barrels and the trade and craft related to these activities. The size of the barrels was largely prescribed, so that each barrel contained 900 to 1000 herrings (with the salt making up one fifth of the contents of the barrel). The price was based on the number of herrings, not the weight of the barrel. The pickled and therefore very durable herrings were sold all over the mainland.
With the advent of the stock exchanges, the presence disappeared completely. Suppliers and buyers were represented by stock exchange traders , the standardized trading objects ( stocks , bonds ) were stored elsewhere, the stock exchange prices were not negotiated between the suppliers and buyers, but left this to the stockbrokers . This absence of market participants and trading objects required stricter rules. The first stock exchange rules in Prussia were dated February 25, 1739, but were not yet considered stock exchange rules in today's sense. It was not until the new version of July 1805 with a more complete and detailed "Exchange Regulations" that these requirements were met. For Karl Marx in 1848 the market with its “merciless competition that crosses borders” was a central component of capitalism .
With the worldwide advance of the Internet from April 1993 onwards, networks ( English marketplaces ) were founded that enabled the exchange of goods or services by means of online trading or Internet exchange exchanges (goods for goods). The online retailers Amazon (founded in July 1995) and eBay (September 1995) were among the first and now largest . Both call their platform for classified ads “Marketplace”.
Market law and market place
A marketplace is an urban square (e.g. Gendarmenmarkt in Berlin) on which sales events (markets) are or were regularly held. This so-called market square is usually the central square in a city where the town hall was built. In larger cities, there were often several marketplaces that used to offer specific goods. In order not to have to hold markets in the open air, market halls were built in many cities . The right to hold a market (market right) was decisive for urban development in the Middle Ages and was considered the first stage of city law . The Roland as a traditional symbol of market sovereignty can still be found today as a statue in many German cities, e.g. B. in Brandenburg an der Havel , Halberstadt , Stendal , Wedel and Zerbst .
“Market” is also the official name for a municipality in some federal states such as Bavaria and Saxony, which has a status between village and city. This status was previously associated with the granting of market rights. In other federal states there are other names for this. In Bavaria and Austria, the term market is still an official part of the place name . To assign names like Sobotka , Szombathely or Saturday Berg on Saturday's towards market law.
- National markets
A national market is understood to be a uniform and unrestricted trading area within the boundaries of a nation state. While in the Middle Ages markets were strongly regionally restricted and protected by tariffs, trade barriers were relaxed during mercantilism and completely dissolved within nation states at the beginning of the 20th century. The driver of this development was not economic power, but political decisions such as B. the freedom of establishment and the technological development of communication options.
- International Markets
From 200 BC BC there were the first trade routes between the Mediterranean and China, on which mainly luxury goods were transported both by land and by sea. As a result of developments in seafaring from the 13th century onwards, everyday goods could also be transported profitably. The industrial revolution in Europe led to an explosion in international trade. Because of its supremacy, Europe took a leading position here.
Both the two world wars and the depression of the 1920s slowed the development process of world trade . After that, the USA rebuilt international trade and, supported by a European upswing, a global economy developed.
- Money and capital markets
Originally, money and capital were largely viewed as neutral goods. The development of the actual banking system in Europe began with the relaxation of the church's ban on interest in the Renaissance . At that time, the market participants for these goods were more of a wealthy, political and entrepreneurially influential elite. With industrialization , the number of wage workers who had the opportunity and the need to save money increased by leaps and bounds . At this time, the importance of central banks and organized stock exchanges increased, also because of internationalization. The first climax occurred before the outbreak of the First World War . This time - also the time of the billionaire businessmen ( English robber barrons , for example Rockefeller , Morgan , Vanderbilt , Andrew Carnegie , Edward Henry Harriman in the United States) - was characterized by hardly any market regulation of the capital market. After a wave of regulation in the 1930s and after the Second World War , these markets are now very dynamic and liberally organized. The right degree of regulation is part of the discussion today, especially since these markets were not infrequently the starting point for financial crises such as the financial crisis from 2007 onwards. Today the money and capital markets are grouped together as financial markets alongside the foreign exchange market .
- Non-economic markets
Following Niklas Luhmann's theory of social systems , the market can also be thought of as the “internal environment ” of the economy . As the horizon of all “possible” investment decisions, the market appears as the environment of the actually “realized” economic investments. According to Dirk Baecker , such “inner environments” can , however, also be observed with a view to other functional systems of society . Authors like Pierre Bourdieu , James Samuel Coleman and Gary Becker also assume the existence of non-economic markets. Correspondingly, in the work of Steffen Roth, the question arises as to how a general market concept must be ordered, on the basis of which markets in ages and regions of the world can be observed in which functional differentiation does not play the main role (e).
Business forms of retail trade
- Markets as an open sales event
Market is also the name of the sales event itself, at which at regular or irregular intervals at a certain place - usually the market square in the city center - dealers come together to sell goods for daily needs at stalls, shopkeepers' markets , often in form a weekly or fair . If used goods such as used household items or second-hand clothing are offered in a market, one speaks of a flea market or flea market.
In addition to such general market events, a whole series of special events in market form has developed over the course of history; These include, for example, special fruit markets, fish markets and similar product group markets, as well as cattle markets (which historically had special places in cities ), more recently farmers' markets (direct marketing markets), but also craft markets , art markets , Christmas markets and specialist and specialty fairs.
- Traditional local markets
Emerging from the barter- based markets of early history or indigenous cultures, there are local markets for the products of traditional farming today, especially in developing countries , in which the producers sell their goods "directly" or exchange them for other goods. The decisive characteristic of such markets is the pure supply orientation; Profit generation and profit play no role here.
- Wholesale markets, supermarkets
A wholesale market is a place (often a wholesale market hall ) on which, for example, food and flowers to retailers (. Eg retail shops, restaurants ) are sold ( wholesale ). Retail stores often have the suffix “Market” above a certain sales area . These include the self-service market with 2,000 sqm of retail space, abroad as hypermarket ( English hypermarket ) referred to the consumer market with 1,500 to 4,999 sqm of retail space and the supermarket m² with a sales area of at least 400 and less than 1500 m².
Concept of market in business
In the economy, the term market generally refers to the (real or virtual) place where supply and demand for a good come together . If the supply is greater than the demand, it is called a buyer's market . If the supply is less than the demand, it is a seller's market . If supply and demand for a good match, one speaks of market equilibrium . It is characterized by the equilibrium price (also market price ) and the equilibrium quantity determined by it. Under certain conditions, an economy in which all goods are freely exchanged in markets achieves a Pareto-efficient resource allocation (First Law of Welfare Economics ). This statement forms the theoretical foundation for the prevalent in many countries economic system of the market economy . If the assumptions of the First Law of Welfare Economics are violated, the allocation of goods across markets is generally inefficient (so-called market failure ).
Paul Samuelson and William Nordhaus define the market as follows: “A market is a mechanism by which buyers and sellers enter into a relationship to determine the price and quantity of a good or service.” Andreas Scharf and Bernd Schubert define the market as follows : "A market consists of all actual and potential customers with a specific need that the company tries to satisfy with its product."
|labour market||Trade in work for wages .|
|Real estate market||Trade in land and buildings .|
|Capital and money market||Trading or brokering of long and short term loans .|
|Consumer goods markets||Trade in consumer goods .
Examples: cellular market, automobile market, home PC market
|Capital goods markets||Trade in capital goods.
Examples: machine market, tool market
A store fulfills the following functions:
- Supply function,
- Coordination function,
- Pricing function and
- Distribution function.
From a business perspective, a market is a sales area. The term opening up new markets describes a basic requirement for every growth-oriented company today . The relevant overall market can be divided into market segments. From the great importance of the sales area for a company, the field of marketing has developed in business administration .
“Market” in the sense of marketing denotes target groups that can be assigned to a specific need or need cluster and combines this with the products and services of the provider. So needs and solutions come together in the market. Needs / customer groups or solutions alone do not constitute a market. Only when needs and solutions are combined does a market emerge (see also the term relevant market ).
In the context of marketing, markets generally have a double function, because they are reference objects and target objects of marketing at the same time. Indeed, as reference objects for marketing, markets provide the framework for the marketing of a company, since marketing takes place in the markets and is accordingly strongly influenced by the market players. At the same time, however, with their marketing activities, companies also strive to shape or influence the markets and market players, whereby the markets become target objects for marketing. The market design and influence should be presented in such a way that (potential) customer behavior is as beneficial to the company as possible.
The business administration of the trade has developed an independent "market generation concept". After that, trading companies, and indeed every single company, generate and organize complete markets as specific (tertiary) goods: "sales markets" for suppliers and at the same time "procurement markets" for customers. The fundamental importance of trade for the market economy lies not only in this permanent and simultaneous organization of goods markets for various market participants . In addition, there is the fact that trading companies create original "competition" (product competition) through their free range and pricing. “The mere fact that goods from different manufacturers are placed directly next to one another as alternatives on the shelf, shop window, mail order catalog, etc. and are presented for free market extraction and free choice of consumption, creates competitive situations. Every trading company subverts (probably largely unconsciously) the tendency of every manufacturer to monopolize ( English propensity to monopolize ) according to Joan Robinson . "
Markets are divided into market types according to the number of suppliers and buyers. This classification is mainly used to explain the formation of market prices. Since Heinrich von Stackelberg, a distinction has been made between the following types of market:
|few||Oligopoly||bilateral oligopoly||limited monopsony|
|a||monopoly||limited monopoly||bilateral monopoly|
Market term in sociology
In sociology, the market has been used since Ferdinand Tönnies (for “ society ” versus “ community ”) and Max Weber as a “general model of social action”; In its broadest form, it includes “any exchange ” of social sanctions (including negative sanctions up to and including war ). The ethnosociologist Georg Elwert used this approach to analyze the "markets of violence" of warlords .
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