Markets (II)

A market need not be formal or held in a particular place. Second-hand cars are often bought and sold through newspaper advertisements. Second-­hand furniture may be disposed of by a card in a local shop window. Foreign currency, gold, base metals, raw cotton and other goods which can be accurately described are dealt in over the telephone. However, in studying the market economy it is essential to understand how price is determined. Since this is done in the market, we can define the market simply as all those buyers and sellers of a good who influence its price. Within the market there is a tendency for the same price, allowing for costs of transport, to be established for the same commodity.

What conditions must a commodity fulfill to obtain a world market? First, there must be a wide demand. The basic necessities of life (e.g. wheat, vegetable oils, wool, cotton) answer this requirement. In contrast, such goods as national costumes, books translated into little-used langu­ages and postcards of local views have only a local demand. Second, commodities must be capable of being transported. Land and buildings are almost impossible to transport. Personal services are limited by the distance the consumer can travel. Labour, too, is particularly immobile, especially when it comes to moving to a different country. Furthermore, governments may, by import taxes and quotas, effectively prevent the entry of certain commodities into the country. Third, the costs of transport must be small in relation to the value of the commodity. Thus the market for diamonds is worldwide, whereas that for bricks is local. Similarly, wheat and oil are cheap to transport compared with coal because they are more easily handled - although, as sea transport is relatively cheap, coal mined near the coast can be sent long distances.

Industry and agriculture of the uk

The United Kingdom is considered one of the world's major manufacturing nations. Now high technology industries are more developed than heavy engineering. Heavy engineering and other traditional industries have experienced a certain decline.

Certain areas are traditionally noted for various types of industries. For instance, Newcastle is famous for coal industry, the country of Lancashire for its textile industry. The Midlands, or the central counties of England are famous for the production of machinery, coal, motor cars and chemicals.

Speaking about the cities of the United Kingdom the first mention should be made of London, the capital of the UK. It is a big port on the River Thames a major commercial, industrial centre.

Leads is a centre of clothing industry producing woolen articles. Glasgow is a major port on the River Clyde where shipbuilding industry is developed. Liverpool on the River Mersey is a flour milling and engineering centre. Birmingham is an iron and steel centre Manchester is famous for textiles manufacturing.

Three-quarters of the United Kingdom's land are dedicated to agriculture. About two per cent of the population of the United Kingdom are engaged in agriculture, but the yields of English farms and pastures are very high. Wheat, barley oats and potatoes are the most important crops grown Sheep, cattle and pigs are the most numerous types of livestock.