Market infrastructure.

1) Meaning of market infrastructure for economic relations.

a) The formation of market infrastructure is necessary for any model of economy. For countries with transitive economy it is of great importance. I command economy separate branches of infrastructure were of secondary importance while others were not considered to be important at all.

Major elements of modern market infrastructure are:

- credit system, including banks;

- exchanges (commodity, stock exchange, currency and real estate market);

- auctions, fairs and other forms of organized outer-exchange mediation (brokers, dealers);

- the system of regulation of population employment (state and private structures), labour markets;

- issuing system;

- depository system (national depository, independent owners and securities registrators);

- consulting agencies;

- clearing banks or firms;

- trust companies;

- innovative-informational centers, technoparks;

- advertising business;

- means of business communication;

- rating agencies;

- real estate business;

- auditing companies;

- civil firms and sponsor funds meant for the support of entrepreneurial activity.

“Ideal “ marketing model includes such elements:

1. freedom of enterprise and full responsibility of the economic activity results. But “ strict budget limit “ functions, that is, each of the market subject operates only with own or borrowed funds (credit);

2. competition, absence of any kind of monopoly, which limits the ability of producers to influence on market price, and in that way distort the conditions of market competition;

3. absolute mobility of all kinds of the economic resources (material, financial, labour), that is, their transference from less effective to more effective branches, but for this reason developed market infrastructure is necessary (banks, exchange, distribution centers etc.);

4. autonomous activity of all market subjects;

5. freedom of price formation. Price – is the core of market mechanism (demand – price – supply). L. fon Chajek (German economist) wrote, that any deviation of free price formation (even with good intentions) led to the establishment of dictatorship;

6. full awareness of all market subjects about market condition (market conjecture, profit rate, the situation on labour market, financial market etc.);

7. stability of state financial system, openness to the foreign market, political stability of the country.