Chapter 23
Markets Around Us
In
our day to day life, we require the services of a market. Commonly, market is a place having shops
selling vegetables, clothes, stationery, etc.
In exact term, the market can be defined as a place where buyers and
sellers engage in the activity of sale and purchase of goods. The buyer and seller can meet in a shop or a
mall and the buyer can pay for the goods or services through cash or credit
card or any other mode. Types of Markets
There are two main types of markets - wholesale markets and retail
markets. A buyer can save a lot of money
by buying directly from a wholesale market as the wholesaler buys directly from
the producers or the manufacturers. But
they do not sell in small quantities.
They only sell in bulk. The
retailer sells the goods in smaller quantities / numbers but at a higher price,
as he / she buys from the wholesaler and adds the cost of transportation,
investment of money, time, storage charges and profit on the price of
goods. If the payment is not made right
away and goods are bought on credit, then the retailer further increases his
margin. Every city has a wholesale
market from where the goods are supplied to the retailers. Hence, there is a difference in the price of
goods between the wholesale market and the retail market. The more people involved in the chain means
additions in the cost of a commodity at every level. They all have to make profit at every level
to pay for their investment, manpower, premises, storing facility, etc. The price of goods in a market is determined
by the factors like demand by the buyers / consumers, supply by the farmers /
manufacturers, etc. The demand for a
good is defined as an amount of commodity for which people are willing to pay and
buy. Supply of a good is the quantity
that the suppliers are willing to put in the market. When the Do You Know? The price of a good rises, the supply also
rises. When the price goes down, the
supply also goes down! Buying and
selling also take place without during the British period the farmers were
forced to go to the marketplace through tele grow cotton, as the British
industries required huge marketing and internet. amount of cotton as raw material. The cotton cloth 191
Do you know? The
changeover from improved raw material to finished products has generated more
jobs for the unskilled, semi-skilled and professionally trained experts. was then imported from Britain and sold all
over India. This was a fatal blow to
Indian weavers that destroyed the Indian cotton industry. After independence, Indian market has come a
long way. Our policies were aimed at
reviving our traditional crafts, setting - up of and safeguarding Indian
industries. Hence, in place of cotton as
a raw material, the export of cotton cloth was encouraged. Currently, India is exporting garments all
over the world. Our fashion industry is
also attracting buyers by organizing fashion shows in India and abroad. Buyers are coming to India even from Paris
and Milan, the fashion capitals of the world!
Besides the retail and wholesale markets, many markets are also set - up
on specific days of the week in different parts of many cities / towns. They are known as weekly markets (Phadi or
Patan bazars). The shopkeepers set - up
shops on the roadside or in an open space for the day and then close them at
night. The goods are cheaper here as no
carefully is incurred on involving permanent shops like rent, electricity,
etc. People go to such markets as most
things of daily use are available at one place and they do not have to go to
different places to buy what they need.
Moreover, the customers are free to bargain! Weekly market (Patari bazaar) 192
Do you know?
Marketing is different from advertising Advertising persuades the
customer to buy but marketing is systematic planning to bring the buyer and
seller close for buying and selling markets keep changing all the time. The wholesale market is giving way to retail
Giants like the Reliance Fresh, Big Bazaar, Shopper's Stop, Vishal Mega Mart,
etc. They run chain stores in different
cities. They have gained popularity as
they buy directly from the producers / manufactures and sell to the consumer at
reasonable price in a comfortable atmosphere.
Most people prefer shops in the neighborhood for their day - to - day
requirements, as they can visit them at any time. Moreover, the customer and the shopkeeper
know each other well and the goods are also available on credit. So, the payment can be made at a later date
as per the A retail shop a convenience of the customer. ta MARKETS AND DEMOCRACY As you know there are
different types of markets like retail stores, malls, wholesale shops or weekly
markets. They are owned by different
people. On one hand, we have the
shopkeeper who sets up his shop in different areas on specific days of the
week. He stores his good home and
transports and sells them himself or with the assistance of the members of his
family. On the other hand, we have a
chain store, whose owner spends a lot of money on decorating, carrying and
stocking it. Both shopkeepers spend and
earn unequal amounts of money. Like,
there are differences in the buying power of customers. One buyer may be able to afford only cheap
goods from a weekly market whereas another may buy branded items from top
stores. The selling as well as buying
depends on money. Moreover, the goods
are brought to the customer after passing a chain of markets. This chain helps in improving goods produced
in different areas, to reach the customers everywhere. The sale of goods increases production, that
in turn, also provides new earning opportunities for more people. But everyone does not get equal benefit of
these opportunities in the markets. 193
Do you know? There
are two types of markets in an economy 1. Commodity Market: Weekly Market and
Branded Market 2. Factor Market: Land, Labor Capital and Entrepreneur /
Enterprise / Organiser. The effort of
the Indian Government is to reduce inequalities in them. LGH Markets also determine the wages. A job where there are many willing workers
(high supply but only a small number of positions (low demand) will result in a
low wage for that job. Competition among workers tends to lower the wage. If
any one worker demands a higher wage,
The employer car remove him and simply hire another at a low wage.
Hence, we see that markets create economic inequality, which means inequality
of economic asset and incomes among individuals and groups within a society.
The term is also related inequality o opportunity. A democratic government is committed to protect
the interests of all sections of the societ else equality will be meaningless
for them. Our government has taken many steps t protect the interests of the
people. The government has fixed minimum wages so that the workers are able to
fulfill their basic needs, besides
opening employment exchanges to registe names of unemployed candidates who
desire employment. The government ensures the distribution of rice, wheat,
s ugar and kerosene at a reasonable 194
rate for the poor under the Public Distribution System
(PDS). The government also announces the
support price for the crops (Minimum Support Price) to safeguard the interest
of the farmers and save them from the exploitation by the moneylenders, village
touts, wholesalers and retail giants. The
government also provides electricity, irrigational facilities, technical
assistance, loan and insurance facilities at subsidized rates. Do you know?
PDS has been made more transparent by digitization on of ration card,
supply chain management, toll free helpline, etc. A democratic government must provide
opportunities to ensure equitable distribution of goods, services as well as
sufficient income for all to eradicate inequalities in the society. Do you know?
ebay in Online shopping is catching up in India at a very fast
rate. JABONG flipkart deplor golia
amazon yabhama infibeam AL Tc.com SHOP redito Snapdeal 10 SAITES STOP TIRES
VAZOVI FASHION Online shopping lapang Keywords .. customer: one who buys
something. employment: work which enable
a person to earn a living. exploitation
to treat others in a manner to get maximum benefit for oneself. exporter: a person who sells goods to other
countries. wages: payment in lieu of
work done on daily, weekly or monthly basis.
. 195
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