Types of markets

A market is a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. Along with a right to own property, it is one of the two key institutions that organize trade.

The function of a market requires, at a minimum, that both parties expect to become better off as a result of the transaction. Markets generally rely on price adjustments to provide information to parties engaging in a transaction, so that each may accurately gauge the subsequent change of their welfare. Markets are efficient when the price of a good or service attracts exactly as much demand as the market can currently supply. The chief function of a market, then, is to adjust prices to accommodate fluctuations in supply and demand.

Although many markets exist in the traditional sense (such as flea markets) there are various other types of them. Markets may be classified in two broad categories: consumer markets and industrial/organizational or business-to-business markets. These categories are based on the characteristics of the individuals and groups that make up a specific market and the purposes for which they buy products.

The consumer market consists of individuals or households that purchase goods and services for personal use and who do not buy products primarily to make a profit.

The industrial/organizational market is made up of enterprises that buy goods and services for resale to the consumer market or for their own operations.

A market can also be organized as an auction, as a shopping center, as a complex institution such as a stock market, and as an informal discussion between two individuals.

In economics, a market that runs under laissez-faire policies is a free market. It is ‘free’ in the sense that the government makes no attempt to intervene through taxes, subsidies, minimum wages, etc.

Markets of various types can spontaneously arise whenever a party has interest in a good or service that some other party can provide. Hence there can be a market for cigarettes, for chewing gum, for contracts, for the future delivery of a commodity, etc. A market arises only in a case when all parties meet the four following requirements:

· They must need or want a particular product or service.

· They must have the ability to purchase the product. Ability to purchase is related to buying power, which consists of resources such as money, goods and services that can be traded in an exchange situation.

· They must be willing to use their buying power.

· They must have the authority to buy the specific products.

Assignment 3. Answer the following questions.

1. What does the term ‘market’ mean?

2. What are the functions of a market?

3. In what two categories may markets be classified?

4. What is consumer market?

5. What is consumer/organizational market?

6. What other types of markets can you mention?

7. What are the requirements for a market?

Assignment 4. Study the following definitions.

Blackmarket	The system by which people illegally buy and sell goods, or foreign currency.
Grey market	Term applied to semi-official dealings in shares conducted outside the normal trading hours of the Stock Exchange.
Flea market	A market, usually in the street, where old or used goods are sold.
Consumer market	A market which consists of individuals or households that purchase goods and services for personal use and who do not buy products primarily to make a profit.
Industrial/organizational market	A market made up of enterprises that buy goods and services for resale to the consumer market or for their own operations.

Assignment 5. Complete the following sentences.

1. The function of a market requires that both parties …. 2. The chief function of a market is to …. 3. Markets may be classified in …. 4. A market can also be organized as …. 5. “Free market” means that the government makes no attempt to ….. 6. A market arises only in a case when ….

Assignment 6. Translate the following phrases into Ukrainian.

A social arrangement; to carry out a voluntary exchange of goods or services; along with a right to own property; key institutions; both parties expect to become better off; to rely on price adjustments; parties engaging in a transaction; to supply currently; to accommodate fluctuations; in the traditional sense; personal use; a market that runs under laissez-faire policies; hence.

Assignment 7. Translate into English.

Дізнатися якусь інформацію; як мінімум; точно оцінювати; подальша зміна; поділити на дві великі (широкі) категорії; характерні риси, що створюють певний ринок; купувати товари, головним чином, для того, щоб отримати прибуток; перепродаж; ринок цінних паперів; неофіційна бесіда; робити спробу; втручатися за допомогою податків та субсидій; раптово виникати; стосуватися купівельної спроможності.

Assignment 8. Match the pairs of synonyms. Use any 5 words in the sentences of your own.

A: to gauge; to adjust; to intervene; accurately; spontaneously; currently; subsequent; welfare; stock market; laissez-faire; subsidy.

B: suddenly; liberal; presently; financial assistance; well-being; to accommodate; securities market; to interfere; to measure; exactly; following.

Assignment 9. Paraphrase the underlined words using the synonymous words from as. 8. Translate the sentences.

1. One of the leadership styles in management is liberal style. 2. They see non-economic advantages as being more important to the national welfare than the economic advantages of specialization. 3. The company got sufficient subsidies from the government. 4. The entrepreneur accurately measured returns from the transaction. 5. Markets of various types can spontaneously arise. 6. The market adjusted fluctuations in supply and demand.

Assignment 10. Match the pairs of words with opposite meaning. Use any 5 words in the sentences of your own.

A: minimum; complex; spontaneously; personal; subsequent; informal.

B: preceding; public; formal; maximum; simple; expectedly.

Assignment 11. Fill in the blanks with an appropriate word or phrase. Translate the text.

Buying decision; buyers; product; sellers; the merits; purchase; deci­sions; services; salesperson; consumers; purchasing power; a market; transaction; the funds.

WHAT IS MARKET?

Market consists of … and …, but for the most part they are de­fined in terms of those who … goods and …. A market consists of people; whether they are …, procurement officers for local, state and federal governments, or the purchasing department of a nearby plant. But people do not make …. Many students may desire a new car, but few have … needed to complete this ….

A market consists of people with … … and the authority to buy. One of the first rules the successful... learns is to determine which person in a firm has authority to make... as for a purchase. Salespeople have wasted hours convincing the director of purchasing department about... of a particular... or group of products, only to discover that the ul­timate...... actually rests with the design engineer.

Assignment 12. Translate the sentences given below. Pay attention to the words in italics.

1. Chesterham is a small market town with a population of nearly 2000 people. 2. Access to new foreign markets was assured. 3. This device was first marketed by a Japanese firm. 4. They have never had to operate in a market economy. 5. It’s a seller’s market at the moment. 6. A talking watch will shortly be on the market. 7. Many labour-saving devices have come onto the market. 8. You’ll never get a picture as good as this one on the open market. 9. Exxon might well be in the market to buy up a competitor too. 10. They took the mineral water off the market while tests were being made.

Assignment 13. Translate into English.

1. Ринок – це сукупність людей, які мають потреби в товарах та можливість, бажання і повноваження купувати ці товари. 2. Після укладання угоди, обидві сторони сподіваються, насамперед, отримати прибуток. 3. Ринок споживчих товарів складається з покупців, які особисто споживають або отримують користь від придбаної продукції, і які не купують товари заради отримання прибутку. 4. На вільному ринку уряд не робить жодної спроби втручатися через податки або субсидії. 5. Ринок може з’явитися тільки в тому випадку, коли одна сторона зацікавлена в купівлі товарів чи послуг, а інша сторона може їх запропонувати. 6. Купівельна спроможність споживачів є важливою складовою будь-якого бізнесу.

Grammar: Infinitive: forms and functions

Форма	Active Voice	Passive Voice	Function
Indefinite	to write to ask	to be written to be asked	1) підмет: To learn this is very important.
Continuous	to be writing to be asking		2) частина присудка: His task is to improve the sample.
Perfect	to have written to have asked	to have been written to have been asked	3) додаток: He asked me to wait.
Perfect Continuous	to have been writing to have been asking		4) означення: He gave me a book to read. 5) обставина: I’ve come here to meet you.

Інфінітив (Infinitive) – це частина мови, яка лише називає дію, не вказуючи на особу, яка виконує цю дію; ось чому інфінітив відносять до безособових форм дієслова. Порівняйте:

He plans the reorganization of the company (plans – 3-я особа однини, Present Indefinite, active voice).

To plan is an important management function (to plan – Indefinite Infinitive, active voice)

Ознакою інфінітива є частка to: to plan, to organize, хоча в деяких випадках інфінітив вживається без частки to ( після певних модальних дієслів ): must plan, could organize.

Інфінітив має властивості як дієслова, так і іменника. Як дієслівна форма інфінітив може бути простим (Indefinite), тривалим (Continuous), перфектним (Perfect) та перфектно-тривалим (Perfect Continuous), а також мати форму активного чи пасивного стану (Active or Passive).

e.g. To write (Indefinite Active) – to be writing (Continuous Active)

To write (Indefinite Active) – to be written (Indefinite Passive)

Подібно до дієслова інфінітив перехідних дієслів може мати прямий додаток і вживатись з прислівником:

e.g. It is important to check (what?) the results ( how often?) regularly.

В реченні інфінітив виконує всі функції, що властиві іменнику.

Assignment 14. Make up 5 sentences from each table and translate them.

I	am		to meet our partner
He/She	is	glad	to have cancelled the order
We	are	pleased	to open a new market
You	was	sorry	to send you the order
They	were		to be offered a new job

I		to hire a new employee
He/She	want(s)	to introduce a new product
We	like(s)	to design new car
You	agree(s)	to deliver the goods
They		to advertise their products

I	can	enclose the catalogues
He/She	must	meet your requirements
We	may	give you a discount
You	have/has (to)	effect shipment within 5 days
They	are (to)	supply such items

Assignment 15. Paraphrase the proverbs and sayings by using the infinitive in the position of the subject. Give their Ukrainian equivalents

1. It is never late to learn. 2. It is easy to be wise after the event. 3 It’s a lady’s privilege to change her mind. 4. It’s better to give than to take. 5. It is easier to pull down than to build.

Assignment 16. Answer the following questions expressing your point of view. Use the infinitive in your answers as in the model.

Model: Is it important for students to do research work? – I think it is important for students to do research work.

1. Which is more important for you: to come to the Institute in time or to get an extra hour of sleep in the morning? 2. Is it necessary for students to budget their time? 3. Which is more interesting: to get ready for a seminar or to watch a film with Van Damme? 4. Which is easier: to make money or to spend it? 5. Was it easy to satisfy the customer’s complaint?

Assignment 17. Tell your group-mates about your plans, problems etc. as in the model.

Model: What is your plan for today? (translate an article) – My plan for today is to translate an article.

1. What is the aim of your life? (become a CPA) 2. What is the object of their research work? (find necessary data to proceed with their experiment) 3. What was the chairman’s suggestion? (set up the MBA programme in Cyprus) 4. What is the next point of our meeting? (discuss the assortment of supplied goods) 5. What were the expectations of the government for the previous year? (get financial help from the World Bank)

Assignment 18. Complete the following letter by choosing the appropriate infinitive from the box below. Translate the letter.

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