The market, the market system have a number of positive and negative sides. Western economists include the positive aspects of the market: 1. Efficient allocation of resources. The market contributes to the optimal distribution of resources between economic spheres and industries. It directs resources to the production of only marketable goods, rather than to the […]
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Market infrastructure
The market forms its infrastructure. Market infrastructure is a set of organizations, institutions, enterprises and services that serve and ensure the movement of goods and services, capital and labor, i.e. ensure the normal functioning of the market. It includes a network of commercial banks and other financial institutions; commodity and stock exchanges, trading houses, labor […]
M. Weber's approach
The German economic historian and sociologist M. Weber (1864–1920) focused on the influence of three institutions—politics, ethics, and religion—on the development of the economy of capitalism. From the standpoint of the cultural approach of M. Weber, these institutions form the basis of social mechanisms that regulate the development of economic life. It is they who […]
Globalization and regionalization: prerequisites, essence, dialectics of interaction
The twentieth century unfolded before economists such a large-scale panorama of grandiose changes in the socio-economic life of the planet that their comprehension will require a lot of time and intellectual energy from scientists. Among the most important trends in modern socio-economic development, it is necessary to name such seemingly opposite in meaning, but at […]
Vertical Integration Strategy
Vertical integration expands the scope of the company’s activities in this industry. Companies can expand their activities towards suppliers (“back”) and / or to the end user of the goods (“forward”). Choosing the path of vertical integration, companies strive for full integration (participation in all links of the industry value chain) or partial integration (taking […]