E. Kannan

The statement I have chosen examines the essence of such a concept as economic competition, its importance for a market-type economy. In modern Russia, the foundations of a market economy began to take shape recently, so it is especially important for us to understand the basic features and characteristics of the market.

The British economist Edwin Cannan believed that economic competition is a necessary component of market relations, which is an extremely positive phenomenon. He said:« economic competition This is not a war, but a rivalry in the interests of each other.”In other words, the author emphasizes the importance of the positive value of competition for the development of the economy in general and for the development of competing entities in particular. I share E. Kannan's point of view on the need for competition for a market economy, but still I think that, taking into account all its positive qualities, one should not forget about its negative manifestations. However, the fact remains that competition is a life-giving environment for a market-type economy.

First of all, it is worth giving theoretical arguments. Modern economists define competition as rivalry between participants in the market economy for the best conditions for the production, purchase and sale of goods. IN market economy competition covers all areas economic life and, above all, implies the struggle of entrepreneurs. The essence of competition involves the struggle for the best conditions for the sale of their goods, the use of advantages, etc.

It is important to note that certain conditions are necessary for the development of a competitive environment. The main ones are considered to be free pricing, a variety of forms of ownership, the absence of market monopolization, the operation of laws protecting the rights of private property.

Market modern competition based on free competition. In modern conditions, such a market model becomes impossible. Already in XX century began the formation of the market imperfect competition. These include oligopoly the appearance on the market of a certain number of large manufacturing companies that begin to determine the conditions of the game, control prices, and divide sales markets.

In addition to theoretical arguments, a number of specific arguments can be cited. The positive manifestations of competition include the fact that it encourages the manufacturer to develop new technologies that best meet the needs of the consumer. For example, every year new programs, operating systems appear on the computer technology market, processor power increases, desktop computers, laptops and netbooks become smaller, lighter and more practical. This is a definite plus for the development of science, which is “spurred on” by competition.

Another example is that in a competitive environment, entrepreneurs are forced to think through all aspects of the business in order to outperform competitors. So, in the middle of the 20th century, Henry Ford began to use a new system of labor organization at his enterprise, which in our time is considered to be a classic solution.

But still, I believe that, in no case, one should not write off the negative manifestations of competition, which often turn it into a war, and not into a fruitful and mutually beneficial rivalry. So, for example, in 2011, unable to withstand the competition, once the leading manufacturer of Kodak cameras went bankrupt. Of course, this can be considered an example of market self-regulation, but it also indicates a “war” between entrepreneurs.

You can also take an example from personal experience. From the point of view of the consumer, competition mainly demonstrates its positive aspects. For example, a manufacturer has to create more favorable conditions for the consumer than its competitors. Therefore, sales, discounts and bonuses are held, which allow you to purchase the necessary product or service at a reduced price or on more favorable terms.

Thus, economic competition is undoubtedly the basis of market relations. But, nevertheless, talking about the positive aspects of competition about what constitutes “rivalry in the interests of each other”, one should not forget about the elements of “war” in this type of relationship.

The purpose of the lesson: to continue work on the formation of the foundations of economic literacy, to consider the position of a person in the system economic relations. Lesson objectives: - To summarize, repeat and consolidate students' knowledge on the topic " Modern economy”, to deepen students' knowledge of economics; - Education of civic engagement, the desire to purposefully overcome difficulties on the path of knowledge, to continue the formation of skills to work in a group; - Comprehensive development of the personality of high school students, strengthening the worldview orientation of cognitive interests in the light of the integration of humanitarian and technical disciplines, the development of students' emotions, interest in the subject. Type of lesson: iterative - generalizing. Lesson form: lesson-game. Equipment: I.V. Lipsits. Economy. Moscow, "enlightenment", 2007. PC, projector. Leading task: the class is divided into groups, each group receives the task: to create a presentation "Firm". At the previous lesson, a terminological dictation is conducted, the results of which are necessary for the next lesson. DURING THE CLASSES:

Today in the lesson we must repeat, generalize and consolidate knowledge on the topic "Modern Economics". And today you will compete in the interests of each other. And the game will help us in this. Stages of the lesson “Terminal” “My years are growing ...” “Lifebuoy” “First steps” “First steps” Reminder to the consumer

Lifebuoy 10 minutes Imagine that your ship is shipwrecked. You have launched a life raft. Items in the emergency supply: a flashlight, chess, mosquito ointment, a laser disc, a bottle of mineral water. Items can only be transferred one at a time: 1-most important, 2-less, etc. make a hierarchy by determining the place of each item. Comment on your choice.

Reminder to the consumer we check; Information is power. The more you know. The more confident you feel The more expensive the item, the more you need to know about it The person makes his own choice One of the main problems when buying a product is its safety It is important to know how to distinguish a fake from a branded product Be critical of advertising

In his statement, the British economist E. Kannan touches on the problem of the importance of competition in the development of a market economy. The relevance of this problem lies in the fact that it is competition that is an integral part of a market economy.

E. Kannan believed that economic competition in most cases aims to create rivalry between producers, rather than ignite a war between them.

First of all, we will consider the key concepts of war and competition. War is a social phenomenon aimed at destroying an opponent. Competition is the same struggle, but the struggle for the best conditions for sales and purchases, as well as for access to economic resources. The main difference between competition and war lies in the fact that in the process of war there is a desire to destroy an opponent, while competition involves a struggle in order to improve one's enterprise, improve the qualities and conditions necessary for a favorable process of selling goods on the market. In the economy, two types of competition are distinguished: pure, which would just fully allow enterprises to compete with each other, mutually developing; and imperfect, which includes monopolistic competition, monopoly and oligopoly. The same components partially or completely block the possibility of competition, which negatively affects both the price of the produced goods and its quality.

As proof, I want to give an example of the impact of competition on the improvement of brands. Consider brands such as Microsoft and Apple, which have been competing with each other for many years. I would like to note that from the very beginning of its development, Apple has launched products on the market with accurate calculations of their need in this particular period of time, and also has a strong marketing influence on customers, which of course affects demand. In this regard, Microsoft is inferior to its rival, which in turn gives it some motivation to eliminate the shortcomings that it carries in itself. A similar effect can be considered in the reverse example. This is where the competition comes in, which leads to mutual assistance in the prosperity of both brands.

The second example I will take from the media. A few months ago, an article was published that the iPhone 7 Plus dropped in price, which led to competition in the market. This rivalry between smartphone companies has in turn led to lower prices not only for the iPhone 7 Plus, but for other smartphones as well.

Based on the above, I want to conclude that, only by competing with each other, enterprises can develop in a positive direction (both for the benefit of the buyer and for the benefit of themselves). Rivalry between enterprises, i.e. competition is not a war, it is, on the contrary, a kind of assistance in the implementation, development of your company, your product.

"Economic competition is not war, but rivalry in the interests of each other" ( E. Kennan )

The statement I have chosen reveals the essence and significance of such an important regulator in a market economy as economic competition. None market system In many parts of the world, competition is indispensable, because it is an essential condition for the healthy functioning of the market and the satisfaction of buyers with the best value for money.

British economist Edwin Kennan believes that "Economic competition is not war, but rivalry in the interests of each other." Thus, the author is trying to prove that competition is not cruelty or something immoral, but on the contrary, competition is necessary for the market and even useful for the producers themselves. After all, thanks to competition, sellers are trying to improve the quality of products in order to attract buyers. Consequently, they invest in the development of science and technology, thereby ensuring progressive trends in the development of society. I agree with the author's opinion and believe that the role of competition in a market economy is great and that it is it that promotes healthy interaction.

Consider the very concept of "economic competition". Competition is the rivalry between market participants for the best conditions for the production, purchase and sale of services and goods. Competition is a natural phenomenon. She is born private property, the complete economic isolation of each owner of goods of a certain type, the dependence of the position of sellers and buyers on the market price, which dictates the rules of transactions to all participants.

Free market rivalry has two types: individual and mass rivalry. The first type is capable of changing only the individual price of a commodity belonging to one owner, while the second leads to a change in the general market price. Free rivalry in all forms is conducted by comparatively peaceful methods. It boils down to the economic suppression of the rival (his ruin), mainly by the method of open price competition (bringing down prices).

Mass competition leads to the following consequences. First, to establish an equilibrium market price, thereby regulating the surplus or shortage of goods. Secondly, due to competition, a common price is established for homogeneous products with the same quality. Thirdly, competition stimulates scientific and technological progress. Since the manufacturer, trying to spend less resources per unit of production, introduces new equipment and technologies, various ways of economical use of resources. And finally, competition increases the socio-economic stratification of market entities. Small enterprises do not stand the severe test of strength and go bankrupt. Competition is characterized by a tendency to deepen inequality, and then to the abyss between small and large owners.

Let's bring concrete examples. In the IT product market, investors invest in the development of new technologies. There are so-called venture companies that are engaged in the creation of new technologies in various fields, which pushes science forward and provides the consumer with a more advanced product. For example, when Apple lost the competition in the stationary PC market, it started producing mobile devices, releasing smartphones and players, that is, it created an alternative market for itself, in which it became more successful than other companies. These products made the company world-famous and opened up new opportunities. As a result, iPhone and iPod users turned their attention to other Apple products and switched from PC to Mac. So because of the competition with Microsoft, the company found its own unique path and became the most valuable company in the world.

Or, for example, consider the auto industry. When Henry Ford improved conveyor technology, his company was able to produce 10 instead of 1 car per day, which significantly reduced the cost of a car. The labor force has become many times cheaper per 1 produced car. This naturally increased the profits of the company and the entrepreneur.

Each of us has experienced the beneficial effects of competition among manufacturers. We have a wide selection of various goods and services, the quality of which the manufacturer is trying to improve in order to attract the buyer. Moreover, during a price struggle, sellers significantly reduce prices in order to also win over the buyer to their side. All this is very beneficial for a simple consumer. For example, when choosing a smartphone for myself, I did not think about quality or design, since it is almost on the same level everywhere, but I chose such a smartphone so that the price was the most acceptable.

So, having considered theoretical arguments and specific examples, we are convinced that economic competition is necessary and it is positive not only in relation to buyers, but even in relation to manufacturers, since thanks to it the company can find the most suitable industry for development, as well as can maximize profits.

economic freedom

“Economic freedom is the freedom of any activity, including the right to choose and the risk and responsibility associated with it” ( F. von Hayek )

The statement I have chosen reveals the essence of economic freedom and its role as the basis of economic activity. Economic freedom appears to be the fundamental basis for the development of a market economy. In modern Russia, the foundations of a market economy began to take shape recently, so it is especially important for us to understand the basic features and characteristics of the market.

The Austrian economist and philosopher Friedrich von Hayek defines economic freedom as "the freedom of any activity, including the right to choose and the associated risk and responsibility." I fully share this point of view, since indeed any freedom, including economic, is associated with the concept of choice and responsibility.

A number of theoretical arguments can be cited to support this view. Modern economists define it as an opportunity for business entities to choose forms of ownership and the scope of application of their abilities, knowledge, capabilities, profession, methods of income distribution, consumption wealth. As well as freedom in the broad sense of the word, scientists-philosophers consider economic freedom one of the basic values, despite the fact that it covers only the material side of life. Economic freedom is manifested both in the freedom of the producer and in the freedom of the consumer. The manufacturer has the right to independently decide how, in what volumes and what to produce, and the consumer is free to determine how, what and in what volumes to acquire and consume. That is, the manufacturer is free to determine at his own peril and risk what and how to put on the market, and the consumer finds himself in the same conditions.

So, as already noted, such a concept as economic freedom, can only be used in the context of talking about a market-type economy. The market economy is formed as a result of the industrial revolution and goes side by side with the capitalist system. It is based on the initiative and enterprise of the manufacturer, which are evaluated by the consumer. In other words, a market economy is characterized by the fact that demand determines supply, that is, the volatility of the market depends on the consumer, the manufacturer focuses on his interests. The market economy is completely based on the balance of supply and demand, as a result of which prices are formed. And since this balance is extremely unstable, the market economy is cyclical.

Also, economic freedom is defined by such a concept as private property, which is fully disclosed in a market economy. This concept is the basis of a person's freedom in society, since, disposing of his property, a person realizes himself as a bearer of rights.

In addition to theoretical arguments, specific examples can be given. First, the economic freedom of the producer can be illustrated by the example of Henry Ford, who, using this right, introduced a completely new approach to the system of labor organization. In doing so, he used his freedom in the matter of how to produce. He took a risk, took responsibility for not the most traditional decision, but his risk was justified.

Second, economic freedom can be demonstrated by people acquiring so-called luxuries: expensive jewelry, collectible vintage cars, works of art. It is unlikely that these things can be called practical or "necessary in the economy." But by acquiring them, people exercise their economic freedom, disposing of their funds as they see fit. And, undoubtedly, by making such a choice, they take on a share of responsibility and risk based on, for example, the possible loss of value of these items.

And finally, as an example, we can recall the story of Mark Zuckerberg, the creator of the global social network Facebook. One day this man decided to take a chance, bringing to life, it would seem, not really promising idea but people accepted it. Thus, his risk was justified, and he achieved incredible success.

I can give my family as an example from personal experience. Just as in any other family, in our family the economic freedom of the consumer is realized through the choice of consumed goods. That is, we ourselves decide which product to prefer, trust advertising or our own opinion, on what criteria to base our choice (price, quality, practicality). But at the same time, preferring one product (or service) to another, a certain share of responsibility for the choice made falls on our shoulders.

Thus, being a value for human society, economic freedom, like any other, involves the exercise of choice and the resulting share of responsibility and risk.

The statement made by Edwin Kannan reveals the essence of managing a market economy from the standpoint of economic competition. Not a single market system in most countries of the world can do and will not do without competition in the future, because only it is a condition for the functioning of the market and satisfying the needs of buyers with the most favorable relationship between price and quality.

British economist Edwin Cannan believes that "economic competition is not war, but rivalry in each other's interests." The author seeks to substantiate that competition is not cruelty, but, on the contrary, competition is necessary for the market and, among other things, can be useful for the manufacturers themselves. After all, due to competition, sellers strive to improve the quality of products in order to interest buyers. Consequently, they invest in the development of science and technology, thereby ensuring progressive trends in the development of society. I agree with the author's opinion and believe that the role of competition in a market economy is huge, and that it is it that promotes healthy interaction.

Consider the very concept of economic competition.

Competition is the rivalry between market participants for the best conditions for the production, purchase and sale of services and goods. Competition is a natural phenomenon. It is generated by private property, the complete economic isolation of each owner of goods of a particular type, the dependence of the position of sellers and buyers on the market price, which establishes the rules of transactions for absolutely all participants.

Free market rivalry has two types: individual and mass rivalry. The first type is able to change only the individual value of the goods, which is the property of one owner, and the second leads to a change in the total market value. Free rivalry in all forms is conducted by comparatively peaceful methods. It boils down to the economic suppression of the rival (his ruin), mainly by means of open price competition (bringing down the cost).

Mass competition leads to subsequent results. First, to establish an equilibrium market value, thereby regulating the surplus or shortage of goods. Secondly, thanks to competition, a single price is introduced for homogeneous products that have the same quality. Thirdly, competition stimulates scientific and technological development. Since the manufacturer, trying to spend less resources per unit of output, innovates in techniques and technologies, various methods of economical use of resources. And ultimately, competition increases the socio-economic division of market entities. Small enterprises do not stand the severe test of strength and go bankrupt. Competition is characterized by a tendency to deepen inequality, and then to the abyss between small and large owners. Let's give specific examples.

In the IT product market, investors invest in the development of new technologies. There are so-called venture companies that are engaged in the creation of new technologies in various fields, which pushes science forward and provides the consumer with a more advanced product. For example, when Apple lost the competition in the stationary PC market, it started producing mobile devices, releasing smartphones and players, that is, it created an alternative market for itself, in which it became more successful than other companies. These products made the company world-famous and opened up new opportunities. As a result, iPhone and iPod users turned their attention to other Apple products and switched from PC to Mac. So because of the competition with Microsoft, the company found its own unique path and became the most valuable company in the world.

Or, for example, consider the auto industry. When Henry Ford improved assembly line technology, his company was able to produce 10 instead of 1 car per day, which significantly reduced the cost of a car. The labor force has become several times cheaper per 1 produced car. This naturally increased the profits of the company and the entrepreneur.

Each of us is faced with the beneficial effects of competition among manufacturers. Before us opens an extensive selection of various goods and services, the quality of which the manufacturer seeks to improve in order to interest buyers. Moreover, during a price struggle, sellers significantly reduce the cost in order to also win over the buyer to their side. All this is very beneficial for a simple consumer. For example, when choosing a phone for myself, I did not think about quality or design, since it is almost on the same level everywhere, but I chose such a phone so that the price was the most acceptable. So, having considered theoretical arguments and specific examples, we are convinced that economic competition is necessary, and it is positive not only in relation to buyers, but even in relation to producers. Since thanks to it, the company can find the most suitable industry for development, and can also maximize profits.

economic competition market