Business Environment Test Questions Argumentative Essay Example

place of trade, involves two participants: sellers and buyers. Throughout time, markets have evolved from physical markets where people met face-to-face to virtual markets supported by IT networks. Markets can be either spontaneous or planned and regulated, depending on the availability of goods and/or services. They also vary in terms of competition; some have multiple vendors selling similar products while others have little to no competition due to government protection. The price of goods and services is directly influenced by the number of buyers and sellers, following the law of demand and supply (Markets: What is a Market?).

Market dynamics, as determined by the law of supply and demand, determine that an excess of sellers creates a surplus of goods and services, leading to decreased prices. Conversely, when there are fewer sellers but a large number of buyers, the demand for goods and services rises and causes prices to increase (Markets: What is a Market?). Markets come in different types with unique functions. One notable example is the currency market, which stands as the biggest continuously traded market worldwide.

Throughout the day and night, numerous entities like governments, banks, investors, and consumers participate in ongoing currency trading activities. These transactions lead to substantial money transfers. Financial markets, which encompass stock and bond markets, allow investors to trade shares and facilitate the exchange of liquid assets.