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.

I cannot but agree with the opinion of this President. Vladimir Vladimirovich Putin, with this statement, is trying to convey to us that in modern world One of the most important factors of production is labor. Society needs smart, knowledgeable people.

Resources are what is used purposefully people to meet their specific needs. Resources are limited and unlimited, as well as natural and economic. Economic resources are called factors of production. Factors of production include land, capital, labor, entrepreneurial ability and information.

The modern generation should understand that the information society needs people who have information.

So, if in a traditional society people with physical strength were needed to perform land work, then in this case everything is completely different.

From the media in the Kommersant newspaper, I came across an article that spoke about citizen V. In 1990, he got a job as a sower. After 15 years, the demand for the profession decreased, as this specialty was replaced by special machines that could automatically sow seeds. Therefore, and wage citizen also decreased. As a result, he had to retrain for another specialty, where the demand for the profession is higher.

Thus, we can conclude that Vladimir Vladimirovich Putin spoke correctly about the demand for human resources.

Updated: 2018-03-22

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Useful material on the topic

• “Competition for resources is getting tougher. And not only for metals, oil and gas, but above all for human resources, for intellect” Vladimir Putin

Social Studies Essay

Essay on the topic of:
Competition is the only method of mutual coordination of our individual actions without coercion or arbitrary interference from the authorities. F. Hayek

Essay on the topic of:
Competition is the only method of mutual coordination of our individual actions without coercion or arbitrary interference from the authorities. F. Hayek.

Competition should be understood as the economic rivalry of economic activity participants in the struggle to achieve the best results. It seems to me that the definition of competition given by the author accurately defines its essence. Competition is a regulator of not only economic, but also political, cultural, and interpersonal relations. Competition performs the function of mutual coordination of our actions without interference from the authorities: people compete for better results, more profits, better living conditions. In the course of competition, they objectively change the objects around them, their relationships, adjust to each other, strive to keep up with others, that is, they carry out mutual coordination of actions. For example, on the market, a certain product is presented in excess, i.e., the value of supply is greater than the value of demand. This is where the law of competition manifests itself: a manufacturer, by increasing efficiency, can reduce production costs, reduce the cost of goods, improve their quality and, ultimately, reduce prices for their goods. This will "spur" other manufacturers to retaliate. A decrease in price will increase the quantity demanded for that good. Thus, competition can, without any state intervention, regulate supply and demand, coordinate the actions of various manufacturers. Other examples of competition that are not related to economics can be cited: competition of musical groups, presidential elections, entrance exams, etc. Thus, competition is a universal regulator of the entire life of society.

I want to start with a definition to understand what competition is?
Competition (lat. concurrentia, from lat. concurro - run, collide) - struggle, rivalry in any area. Competition exists wherever there are two entities offering the same services or goods on the market. Now let's look at the role of competition in two areas: life and the economy.
The role of competition in human life. Competition pursues us wherever there is at least some kind of relationship.
Let's learn about the role of competition in some life situations.
Job. Here we compete with our abilities and skills. For example, a tender for the best commercial is announced. Creative groups of various firms begin to invent and then implement all their ideas. The role of competition in this case is stimulating, it develops people's abilities.
School. In school, we compete with knowledge. For example, you need to write a very important report on physics for a school competition, and this is where the role of competition comes into play. It spurs and encourages contestants to win. On the one hand, this is good, the participants are working, striving for a given goal. But there is another side, often in order to win, contestants act in dishonest ways or quarrel with friends, participants in the same contest.
Show Business. Here we compete with our skills, talents or external data. For example, the international music contest "Eurovision" is held every year. First, a selection is made in the country. Participants compete, showing what they are capable of and ready for in order to win. Then a competition is held between European countries. The countries here are represented by those participants who have withstood this competition and have shown their abilities the most. And the winner is the most competitive and talented participant.
Let's move on to the role of competition in the economy.
Competition, in the economic sense, is a form economic relations between the subjects of the market economy, which expresses the rivalry for the most favorable conditions for the production, sale and purchase of goods or services. This is a violent and conflicting method of interaction. market entities: achievement by the entrepreneur of the goals set at the expense of other entrepreneurs.
Competition in the economy exists only in a market economy. economic system. Competition in the market of various producers of the same product or service forces them to develop their technologies, improve the quality of production, but only if this is controlled competition. If it is not controlled, then manufacturers are ready to do anything to be better, while the quality and prices of goods or services often leave much to be desired.
Competition in the economy plays a motivational role, it stimulates the entrepreneur to take risks and fight.
Competition also acts as a regulator. It dictates to producers what to produce for the consumer, because entrepreneurs mainly compete for the attention of the consumer.
Competition also plays the role of control. Competition limits and controls the economic strength of each enterprise. Competition leaves the buyer the right to choose among several sellers. The more perfect the competition, the fairer the price of a product or service.
Conclusion: competition in the economy and in human life plays a huge role. It stimulates the growth of production and the spiritual growth of a person, develops abilities and functions, controls production and regulates the market. In life, competition helps to choose the strongest, and in the economy - to get a good quality product or service at a lower price.

« economic competition this is not a war, but a rivalry in the interests of each other».

(E. Kannan)

The statement I have chosen reveals the essence, the meaning of such an important regulator in market economy like 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 Cannan 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 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 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 lure 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 producers. Since thanks to it, the company can find the most suitable industry for development, and can also maximize profits.