Such a tricky at first glance concept of "market relations" in its essence means just the interaction of the buyer and the seller. That is, each person not only observes them every day, but is also a direct participant.
Market relations originated many millennia ago and we can safely say that they were and are an associate of human development and the modernization of society and science. First of all, they are a way of cooperation and a kind of communication between people, organizations, countries and even political communities. In essence, a person's life is market relations, because almost all of his actions are aimed at improving the quality of existence, increasing social status and enrichment.
When exactly did market relations originate?
If we rely on historical facts, then the emergence of market relations took place under the primitive communal system. It was during that period of the development of human society that families and kindred clans appeared, rivalry between them arose, and a desire for enrichment appeared. Lacking any items for a normal and comfortable existence, people turned to their neighbors, offering in return what they themselves had in abundance, that is, they offered an exchange, which is the basis of market relations.
Monetary and commodity market relations familiar to contemporaries appeared during the development of the feudal system. But in most cases, things still served as the monetary unit - precious metals or stones, slaves or land holdings, that is, what served as a kind of evaluative measure in a particular society. Money, as such, began its path in market relations only in Ancient China, two thousand years before the onset of our era.
The main functions of market relations
Without market relations, not only is the development of human society impossible, but also its existence in principle. The most important function of the market is to regulate the supply and demand of various goods. It is on this that the pricing depends on everything that is bought and sold, both for luxury goods and for the most necessary things, what a person needs every day and every minute.
The stimulating function of market relations is that by increasing demand, the market also increases the supply of various goods. The manufacturer is trying to reduce the cost of production, to speed up its production, that is, he is looking for ways to optimize production. And this, in turn, serves as an impetus for the creation and development of new technologies and their implementation in the processes of manufacturing goods.
The function of natural selection is to create healthy competition in the sales and production market. Economically weaker economic units give way to stronger ones. And the very presence of many producers and sellers stimulates strong farms to grow and develop.
