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Foreign economic activity. Types of world commodity markets (most important)

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72. Types of world commodity markets

The main criterion for classifying the main types of world commodity markets is the nature and degree of freedom of competition. Based on this criterion, the following types of markets are distinguished:

▪ a market of completely (free) competition;

▪ “pure” monopoly market;

▪ market of monopolistic competition;

▪ oligopoly market (competitive market of few suppliers).

characteristic features market of perfect (free) competition are: a significant number of competing sellers and buyers; the relative homogeneity of products supplied to a given market. In the process of competition between the subjects of this market, a kind of "shocking" of prices takes place, as a result of which they are set at a certain level. Exporters in such a situation go for a discount in price, while benefiting from an increase in total sales.

Specificity pure monopoly market consists in the fact that one supplier of this product dominates here, which is a monopolist. He dictates prices in the market and changes them, combining these operations with corresponding changes in the volume of sales of goods. At the same time, in practice, the seller-monopolist is forced to proceed not from the maximum, but from a certain optimal price, which is formed taking into account a wide range of pricing factors.

Monopolistic competition market involves the coexistence of several monopoly firms. At the same time, each of these firms produces products somewhat different from the products of competing firms. Thus, a situation arises when buyers will not necessarily start buying goods from other firms in the event of a slight increase in prices for them from this monopoly firm. Differentiation of goods in this situation makes the firm a monopoly on a special variety of the same type of product.

The monopolistic competition model assumes that a firm accepts competitors' prices as given, thereby ignoring the impact of its own pricing decisions on the pricing policies of other producers.

The model of monopolistic competition implies that although each firm actually competes with others, it can, to a certain extent, behave like a monopolist.

In real economic practice, such markets are influenced by the processes of diversification of the activities of firms that seek to expand the range of goods they produce and sell and penetrate new markets. Competition is also growing from firms producing so-called substitute goods (goods that can replace others, such as plastics and metals, wool and chemical fibers).

On the oligopolistic In the market, there is competition from a few supplier firms that essentially divide large segments of the market. As a rule, at the same time, firms enter into appropriate agreements with each other. In some cases, such agreements are concluded with the government authorities of those countries in whose markets the firms operate. The form associated with oligopolistic markets is a cartel - an agreement that establishes obligations for all participating firms in terms of production and sales volumes, the share (quota) of each of the participants in the total volume of production and sales of products, prices, conditions for hiring labor, exchange patents. Cartels form cartel prices, which allow the parties to the agreement, while maintaining high profitability, to maintain and strengthen their presence in these markets. The international cartel is OPEC - the Organization of Petroleum Exporting Countries, which periodically makes decisions to reduce or increase volumes (quotas) of oil production.

Author: Bobkova O.V.

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