Question

Analyse how the processes chain of market playan important rolein the market system?

Answer 1

The processes of the market chain play an important role in the market system by connecting various actors and activities that are necessary for the functioning of the market. The market chain refers to the various stages of production and distribution of goods and services, from the sourcing of raw materials to the final consumption of the product.

The market chain begins with the suppliers, who provide the raw materials and resources necessary for production. These suppliers may include farmers, miners, and manufacturers of intermediate goods. The next stage of the market chain is production, where the raw materials and resources are transformed into finished goods and services. This stage involves manufacturers, processors, and assemblers.

The next stage is distribution, which involves the transportation and storage of goods and services from manufacturers to retailers. This stage includes wholesalers, distributors, and logistics companies. The final stage of the market chain is retail, where goods and services are sold to the consumer. This stage includes retailers, such as supermarkets, department stores, and online merchants.

Each stage in the market chain is interdependent on the others. For example, manufacturers rely on suppliers for raw materials, and retailers rely on manufacturers for goods to sell. The smooth functioning of each stage is crucial for the efficient functioning of the market system as a whole. Additionally, the market chain is constantly evolving as new technologies and market trends emerge, which can lead to new opportunities and challenges for market participants.

In summary, the market chain is a crucial aspect of the market system as it connects the various actors and activities necessary for the production and distribution of goods and services. This interdependence ensures that goods and services are efficiently produced and distributed to consumers. The market chain is constantly evolving, adapting to new technologies and trends, which can lead to new opportunities and challenges for market participants.

Step-by-step explanation:

Answer 2

Goods are produced in factories, Goods are also produced in farms and in homes. But we are required to go to factories or farms to buy goods of our need Because the producers are not interested in selling us small quantities. The wholesale traders do this job. They are the people who come in between the producer and the consumer. They first buy good in bulk. They sell these goods to the retailers, who finally sell this to the consumers.

From the above instance, we come to the conclusion that from factories to final consumers a chain is formed, which we may call a chain of markets. We can better understand it through the flow chart given below.

It serves great purpose. It maintains flow of money. It makes easy availability of various items of our daily use. It also promotes co-ordination in society.

A chain of markets links the producer of cotton to the buyer of the shirt in the supermarket. Buying and selling takes place at every step in the chain.