The statement made by Edwin Kannan reveals the essence of managing a market economy from the standpoint of economic competition. none market system most countries of the world cannot 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 market economy is huge, and that it is what 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 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 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 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

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

(Evin Cannan)

I agree with Alvin Cannan's statement that economic competition is not war, but rivalry in the interests of each other. The word competition means competition, rivalry for the right to be the best in something, to have something special. That is, competition is a competition, the achievement of a goal by two or more applicants. Healthy competition exists in any society, in each of its spheres. And people do not treat competition as a negative side of human relations. On the contrary, sometimes this type
rivalry is encouraged. So why shouldn't competition be considered war?

First you need to understand what is the difference between the concepts of war and competition. War implies a struggle, military actions directed against each other, to destroy the opponent. War is always negative, destruction. Competition is the same struggle, but not with the aim of destroying your opponent (both morally and physically), but the struggle for some kind of benefit, moreover, by identifying the strongest of the rivals. Most often, competition occurs in economic sphere. So, if two or more firms are competitors, then each of them tries to offer more favorable conditions for its customers, win their favor and get markets. If it were not competition, but war, firms would seek not to improve their products, but to destroy the rival.

Why is competition mutually beneficial? Because rivals strive to become better, increase their potential, thereby contributing to progress. Monopoly in any industry is destructive, because it does not stimulate growth, it allows you to stay in place and not move forward.

A clear example of the lack of competition in the economy is the policy of "War Communism" pursued by Lenin in the early 20th century. The absence of small and large private owners, and, consequently, competition between them led the Russian economy to decline.

Very often competition is used as a psychological factor. From the point of view of biology, competition - as a driving form of evolution - is inherent in every person, that is, everyone has an inherent desire to prove themselves better than a rival. Each of the competitors is trying to master the best qualities, skills, features. This has a positive effect both on the development of the personal qualities of one person, and on the improvement of production as a whole.

Summing up, I think it is safe to say that competition is not only not a war, but even an engine of development. It is largely due to this open type of rivalry that high labor rates are observed in every sphere of society, high quality production is achieved by organizations and individuals. That is, we can talk about the positive impact of competition on society.

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.

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 is not war, but 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 a 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.

The market of modern competition is 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 emergence of a number of large manufacturing companies on the market, which 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.