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uk

Types of Market
BTEC Business

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What are Markets?

A market is where buyers and sellers: meet to exchange goods and services usually in exchange for money
The market may be in one specific place or not exist physically at all

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An Invisible Market?
Markets can exist: over telephone lines online in emails As long as what happens involves buyers and sellers in a business transaction
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Consumer Markets
You should be familiar with these: consumers interact with sellers to buy goods and services sellers can be retailers using high street shops or out-of-town stores sellers can use other sales media

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Alternatives to conventional retailing: Mail order (including catalogue shopping) Online, Web-based selling (e-tailing) Direct producer-to-consumer selling

New Ideas for Selling to Consumers

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Industrial Markets
The business worlds equivalent of consumer markets: business organisations sell to other businesses not to a final consumer these other businesses use what theyve bought to make new products
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Commodity Markets
Buying and selling products from the primary sector of industry: Use the Biz/ed Glossary to check what primary sector means at:
http://www.bized.ac.uk/glossary/glossary.htm

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Goods traded on commodity markets include: coffee cocoa oil precious metals diamonds

Whats Traded on Commodity Markets?

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Rich and Poor?

Commodity markets often have their centres in developed countries (UK, USA, Netherlands)
The commodities themselves often originate in the developing world (Latin America, sub-Saharan Africa)
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Impact on Rich and Poor?

Commodity market prices can fluctuate wildly: rising prices for oil causes inflation in developed countries which need oil for energy falling prices for coffee, cocoa, copper and so on cause poverty for many in developing world
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Capital Markets
Businesses need capital in order to operate: small firms may borrow or sell shares to family and friends larger companies use the stock market to sell shares this is known as equity capital
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Other Capital Sources

Borrowing on the bond markets. Used by Leeds Utd FC to finance their ambitions More on this in Biz/eds Wanna Argument at:
Derivatives markets
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