Comprehensive Overview of Market Structures and Global Market Actors

What do firms aim to achieve in a market?

Firms aim to earn profit and reduce the cost of production.

What do households expect from the market?

Households expect to get their money's worth and good quality goods and resources.

What role does the price system play in a market?

The price system acts as a better arbiter or peacemaker.

What is the idealized market structure called where all conditions for perfect competition exist?

Perfect or Pure Type market.

Why is perfect competition considered impossible to attain in real life?

Because it requires all conditions of perfect competition to be met, which is unrealistic.

What characterizes an Imperfect or Non-Pure Type market?

It is a more realistic structure where one or more conditions of perfect competition are violated.

What defines Perfect Competition?

It has a large number of independent sellers with identical and standardized products, where sellers cannot raise their prices.

What is a Monopoly?

A market structure with only one seller or producer offering unique products with no close substitutes, allowing the monopolist to dictate prices.

What is a Government-Created Monopoly?

A monopoly established through government limitations.

What is a Natural Monopoly?

A market situation where a single firm can supply a good or service to an entire market.

What is Monopolistic Competition?

A market structure with a large number of sellers acting independently, where products appear different but are essentially the same.

What is an Oligopoly?

A market dominated by a few firms, where products can be identical or differentiated, and firms must consider competitors' reactions when setting prices.

What is Market Integration?

The occurrence of prices and market trends aligning among different locations.

What distinguishes an International Company from a Global Company?

An International Company has no investment from foreign countries, while a Global Company is invested and present in many countries.

What is a Multinational Company (MNC)?

A company with one main headquarters in its home country, where other branches follow the HQ's decisions.

What is a Transnational Company (TNC)?

A company without a single main HQ, where each branch makes its own decisions and adapts products for local markets.

Who are the global market actors?

Countries, companies, people, and organizations.

What is the International Monetary System?

The rules and institutions that manage money between countries.