Buy essay on Exchange Relationships

A market economy, based on principles of free enterprise, variety of ownership’s forms on capital, market pricing, competition and limited intervention from the state in activity of enterprises goods, generates high-quality new relations between managing subjects. A market forms the people of new structure, able to accept the grounded decisions, risk, change the methods of business conduct; it is also forms the group of businessmen that we can consider basis of the so-called middle class of society. The main purpose of this paper is to discuss main questions connected with exchange relationships and briefly analyze them as meaningful social activity.
As it applies to this question we are interested above all things in exchange relationships, which take place between separate people, organizations, enterprises and even between countries concerning a production, distributing, exchange and consumption of the economic goods. The form of contents and character of exchange relationships, their co-ordination and orientation, is determined by the order of receipt and appropriation of material, financial welfares, satisfying the varied necessities of man. Exchange relationships are based on co-operation of subject and object of property, economic interests of concrete people show up in which, task forces, societies on the whole. Separate economists examine economic relations as a component of economic processes, incident to the concrete economic, social and political system. We will consider exchange relationships, inherent to a market economy. Analyzing nowadays situation we can conclude that in market conditions on the first plan go out not distributive function of the states and centralized planning, incident to the command economy, but contractual relations between managing parties, oriented at the correspondence between supply and demand.
As follows from principles of market economy, a producer and user to a great extent is independent of influence of authorities, they are linked between itself by the relations of open market of commodities and services. Although a market economy in a certain measure that is regulated by the state, and businessmen are under an obligation to observe laws of the states, touching the different sides of entrepreneurial activity, in such economy far higher level of the personal interest and initiative, what in the centralized economy, existing in our country for some time.
Such regulator of the centralized economy as set prices “from above” does not operate in the conditions of market. Famous researcher Lechte defined the price mechanism of market as his “invisible hand”, sending the actions of producers and users. (Lechte, 2008) In market conditions set prices under act of unregulated by the state sizes of demand and supply. A market reacts on an increase in a supply a price-cutting, and excess demand conducts, in same queue, to growth of price on a commodity. A market actively induces a businessman to the decline of production inputs commodities and services, because inefficient conduct of business, high costs will result in losses and, possibly, to the crash of all enterprise. Receiving low expenses producer can increase own profit in such way. However, for instance, where under influence of steady demand on concrete commodities many enterprises will begin to make them and surplus appears, then all will decide quality: the user will choose most high-quality and in relation to inexpensive commodities. Between producers (as well as between salespeople) in market conditions is created competitive activity, during which those, whose commodities or services will appear most attractive for users go out winners, it goes constantly. Thus, those producers (salespeople), whoever was able to attain high quality of commodities, being in demand, or high level maintenances of buyers, leave from a market, come to ruin.
Exchange relationships as a form of social activity were described by Easton & Araujo who said that “Exchanges, particularly those between organizations, may be thought of as embedded in a social framework which rewards continuity. Similarly exchanges between the same entities which recur over time take on a different character from those which are instantaneous and atomistic. Such patterns of exchange create a framework, of among other things, expectations, trust, adaptations and investments which can be said to comprise the elements of a relationship.” (Easton & Araujo, 1994) In continuation of this topic we can mention that a danger for modern market relations presents a monopolism, which a capture of market of certain commodity is by the group of companies with the purpose of other producers or salespeople expulsing of this commodity. A monopoly is an enemy of competition, engine of exchange relationships, it violates accordance of demand and supply, therefore in most countries a monopoly is limited, and the proper antitrust legislation is accepted.
In modern terms state market regulators operate in the economy of most countries. Exchange relationships are regulated by the state, in particular through the system of government businesses and public welfare, support of fundamental researches and credit, and monetary system. The financial adjusting is carried out within the framework of the tax system, sending of development of society to the prospect that is determined in the process of forming and realization of the long-term government federal and regional programs, executable including due to facilities of country’s budget, state. Export-import relations are regulated by the state through the system of duties and tariffs on an import and outbound of commodities. Thus, the state is instrumental in development of external economic relations and simultaneously protects interests of domestic producers. And all these measures on maintenance of market relations are regulated legislatively, within the framework of the legal system of the state.
Thus, based on all above stated information it is possible to conclude that exchange relationships can be presented in several types in relate to sphere where they practiced. After companies, enterprises, the producers of commodities and services live fundamental economic questions: what, and, as well, for whom to produce something. At the decision of these questions a key role is played by property relations that can be presented at first, as attitudes of the owner toward the objects of property and, secondly, relations between people, arising up in connection with a property for the purpose. All persons, applying on part of the accrued product, enter into economic relations concerning a property. And as an object of property can change the owner, there are also relations, related to the redistribution of property that takes place in transition of property from a state form in non-state one, private.

Works cited:
Easton, Geoff & Araujo, Luis. Market Exchange, Social Structures and Time. European Journal of Marketing, Vol. 28, issue 3, pp. 72-84, 1994.
Lechte, John. Complexity and Exchange Relations. Macquarie University in Sydney, 2008