Lecture №6 Theme: Essence and the basic lines of market economy. The market and its structure.

THE PLAN: THE PLAN: Essence and value of market economy. Essence and value of market economy. Radical lines of market economy. Radical lines of market economy. Essence and functions, market signs. Essence and functions, market signs. Classification of the markets, as structural elements of market system. A market infrastructure. Classification of the markets, as structural elements of market system. A market infrastructure. Set of institutes of the modern market. Set of institutes of the modern market. Transition of Uzbekistan to market relations. Transition of Uzbekistan to market relations.

The market is a high standard of well-being of the population even at former level of efficiency because market relations start the mechanism of distribution of a public product in which is accurately defined what part is due to the state, what to region, and what to the worker. The market is a high standard of well-being of the population even at former level of efficiency because market relations start the mechanism of distribution of a public product in which is accurately defined what part is due to the state, what to region, and what to the worker.

Market relations are more democratic, they exclude dictatorship of the manufacturer, to subordinate manufacture by interest of the consumer, really to consider demand for production, quickly to react to changes коньюктуры, and also to limit intervention in economy and to offer not only withdrawal of a part of an industrial product through the taxation mechanism, but also the return information and the reporting about that, on what this part of a product is used. Market relations are more democratic, they exclude dictatorship of the manufacturer, to subordinate manufacture by interest of the consumer, really to consider demand for production, quickly to react to changes коньюктуры, and also to limit intervention in economy and to offer not only withdrawal of a part of an industrial product through the taxation mechanism, but also the return information and the reporting about that, on what this part of a product is used.

There are following radical lines of market economy; There are following radical lines of market economy; Economic pluralism which consists in balance of various patterns of ownership and managing. In market economy co- operates private, collective (corporate) and state ownership, including every possible variants of their updating. Economic pluralism which consists in balance of various patterns of ownership and managing. In market economy co- operates private, collective (corporate) and state ownership, including every possible variants of their updating.

Economic activities freedom when subjects of economy, proceeding from own interests defines a sort and activity scales, an exchange occurs on the basis of freely developing market prices, distribution and assignment of incomes too occurs at the discretion of subjects. Economic activities freedom when subjects of economy, proceeding from own interests defines a sort and activity scales, an exchange occurs on the basis of freely developing market prices, distribution and assignment of incomes too occurs at the discretion of subjects.

Antimonopoly character of economy. Balance of patterns of ownership and managing excludes a monopoly position of separate subjects of economy. Antimonopoly character of economy. Balance of patterns of ownership and managing excludes a monopoly position of separate subjects of economy.

The market economy is based in monetary relations. Money the integral element of economy, the basic means of an establishment of economic relations. Steady monetary system – an indispensable condition of development of market economy. The market economy is based in monetary relations. Money the integral element of economy, the basic means of an establishment of economic relations. Steady monetary system – an indispensable condition of development of market economy.

The market economy is based on a competition which is the powerful lever of economic growth. For modern market economy are characteristic the civilised, perfect competition. The competition that force which regulates and supervises the market. The market economy is based on a competition which is the powerful lever of economic growth. For modern market economy are characteristic the civilised, perfect competition. The competition that force which regulates and supervises the market.

The market economy is an economy of equal possibilities for all subjects, however their realisation depends on enterprise ability of everyone. The market economy is an economy of equal possibilities for all subjects, however their realisation depends on enterprise ability of everyone. Market economy – adjustable economy. Its basic regulator is market price which leads up demand of the market to the manufacturer, through adaptations of economic activities the market requirement occurs self-control at macroeconomic level. Market economy – adjustable economy. Its basic regulator is market price which leads up demand of the market to the manufacturer, through adaptations of economic activities the market requirement occurs self-control at macroeconomic level.

Market relations have a social orientation, are directed on satisfaction of requirements of people through saturation of the market by the goods and services, provide a material prosperity, growth of a consumption level of all population for maintenance of the general well-being. Market relations have a social orientation, are directed on satisfaction of requirements of people through saturation of the market by the goods and services, provide a material prosperity, growth of a consumption level of all population for maintenance of the general well-being.

Intrinsic features of the market are shown in its functions: Intrinsic features of the market are shown in its functions: Information – the market informs through the prices on a parity of supply and demand of the goods and services on it; Information – the market informs through the prices on a parity of supply and demand of the goods and services on it; Intermediary – it connects subjects of relations for interchange by results of the activity; Intermediary – it connects subjects of relations for interchange by results of the activity; Ценообразующая – the market specifies true cost of the goods which the buyer as recognises only socially necessary expenses agrees to pay; Ценообразующая – the market specifies true cost of the goods which the buyer as recognises only socially necessary expenses agrees to pay;

Regulating – the market influences all spheres of economy and first of all on manufacture, giving answers to questions; that, as well as for whom to make; Regulating – the market influences all spheres of economy and first of all on manufacture, giving answers to questions; that, as well as for whom to make; Sanifying function is shown that the market – rigid and even cruel system which by means of a competition clears manufacture from economically not viable manufacturers, giving green light more enterprising and effective. This «natural selection» is so rigid that under N.Samulsona's certificate, in the USA to half of all various shops stop the activity in a current of 3 years from the moment of opening. Sanifying function is shown that the market – rigid and even cruel system which by means of a competition clears manufacture from economically not viable manufacturers, giving green light more enterprising and effective. This «natural selection» is so rigid that under N.Samulsona's certificate, in the USA to half of all various shops stop the activity in a current of 3 years from the moment of opening.

Market signs: Market signs: Noncontrollable demand (buyers define, as how many to get, proceeding from the requirements and solvency); Noncontrollable demand (buyers define, as how many to get, proceeding from the requirements and solvency); The noncontrollable offer (manufacturers independently define, what goods and in what quantity to make, proceeding from available resources and being guided by motive of profitableness); The noncontrollable offer (manufacturers independently define, what goods and in what quantity to make, proceeding from available resources and being guided by motive of profitableness);

The free price counterbalancing supply and demand (stimulus of fulfilment of the transaction for the buyer and sellers is взаимовыгода, differently the exchange simply does not occur); The free price counterbalancing supply and demand (stimulus of fulfilment of the transaction for the buyer and sellers is взаимовыгода, differently the exchange simply does not occur);

Classification of the markets: Classification of the markets: To a territorial sign; To a territorial sign; Local (within village, a city, area) Local (within village, a city, area) National (internal) National (internal) World (external) World (external) On intensity of functioning On intensity of functioning The basic market The basic market The additional The additional The fruitless The fruitless The potential The potential прослоечный прослоечный

On character of sales; On character of sales; The wholesale The wholesale The retail The retail On saturation level; On saturation level; The equilibrium The equilibrium The scarce The scarce The superfluous The superfluous On conformity to the current legislation; On conformity to the current legislation; The legal The legal Illegal (the black market) Illegal (the black market)

On degree of restriction of a competition; On degree of restriction of a competition; Pure competitiont Pure competitiont Pure monopoly Pure monopoly The free market The free market To a branch sign; To a branch sign; Light industry Light industry The textile industry The textile industry The computer industry The computer industry

Under the maintenance and appointment; Under the maintenance and appointment; The consumer market The consumer market The market of services The market of services The financial market The financial market The market of innovations The market of innovations The labour market The labour market The market of investments The market of investments

The market infrastructure is an environment, an environment promoting normal functioning of market relations. The market infrastructure is an environment, an environment promoting normal functioning of market relations. Functions of an infrastructure of the market are: simplification its subjects realisation of their interests, increase of efficiency and efficiency of their work, organizational registration of market relations, legal and economic control over them. Functions of an infrastructure of the market are: simplification its subjects realisation of their interests, increase of efficiency and efficiency of their work, organizational registration of market relations, legal and economic control over them.

System of commercial banks and the insurance companies System of commercial banks and the insurance companies The developed network of specialised stock exchanges The developed network of specialised stock exchanges Means of business communications Means of business communications Advertising agencies and mass media Advertising agencies and mass media Tax and customs system Tax and customs system The advisory companies The advisory companies The auditor companies The auditor companies

As practical experience testifies, the modern market includes the following set of institutes. As practical experience testifies, the modern market includes the following set of institutes. In – the first, the legal system which will organise legal regulation of the market here enters and keeps interests of subjects of market relations. The basis of this system is made by the civil code which is carrying out a role of the economic constitution. In – the first, the legal system which will organise legal regulation of the market here enters and keeps interests of subjects of market relations. The basis of this system is made by the civil code which is carrying out a role of the economic constitution.

In – the second, set of institutes includes bodies of the state control and regulation. Establishments on sanitary, epidemiological control, the tax system Here means. In – the second, set of institutes includes bodies of the state control and regulation. Establishments on sanitary, epidemiological control, the tax system Here means. In – the third, associations concern market institutes, consumers unions, businessmen and workers. They raise degree, organisation, civilisation and efficiency of actions of market agents. In – the third, associations concern market institutes, consumers unions, businessmen and workers. They raise degree, organisation, civilisation and efficiency of actions of market agents.

In – the fourth, for normal work of market system the general device of economic life is necessary. This trade enterprise, stock exchanges, banks etc. they connect manufacturers, trading intermediaries and buyers in a single whole. Such integrity gives to the market new quality - ability to self- regulation. Self-regulation is carried out with the help. The prices changing under certain laws. In – the fourth, for normal work of market system the general device of economic life is necessary. This trade enterprise, stock exchanges, banks etc. they connect manufacturers, trading intermediaries and buyers in a single whole. Such integrity gives to the market new quality - ability to self- regulation. Self-regulation is carried out with the help. The prices changing under certain laws.

In Uzbekistan the program different from other economic reforms is accepted. The basic directions of this program: In Uzbekistan the program different from other economic reforms is accepted. The basic directions of this program: Agriculture reform – a source of national wealth by liberation and increase of procurement prices, creation of farms; Agriculture reform – a source of national wealth by liberation and increase of procurement prices, creation of farms; Protection of socially vulnerable social classes, strengthening of the mechanism of social protection; Protection of socially vulnerable social classes, strengthening of the mechanism of social protection;

Increase in manufacture of a share of end- products, i.e. ready to realisation; Increase in manufacture of a share of end- products, i.e. ready to realisation; Development of joint and private business; Development of joint and private business; Consecutive development of a market infrastructure – a network of commercial banks, modern financial and tax system, auditor and the insurance mechanism, stock exchanges. Consecutive development of a market infrastructure – a network of commercial banks, modern financial and tax system, auditor and the insurance mechanism, stock exchanges.