An open market allows for the participation of a wide range of consumers and producers without legal or financial barriers. The accessibility is determined by government regulations, competition, and cultural factors. Supporters believe it benefits the economy, while critics favor restrictions to avoid instability.
An open market is a type of market situation in which there is a generalized access to different participants. In this sentiment, the market is very similar to a free market situation, since there are very few obstacles to the active participation of a wide range of consumers and producers. A market of this type is not limited by such criteria as the legal or financial requirements that the participants must meet before being able to buy and sell in the market. If a very open market situation is extremely difficult to log into the current world market, the term is used on the menu to describe any market that is relatively free from bars such as oranges or charges that are considered prohibitive.
Determining how accessible an open market really is usually involves evaluating the influence of three basic criteria on that market. The nature and the extent of the government regulations that impose oranges or taxes is important, and that the limits of restrictive taxes help determine who can participate in the market. Competence in the market is a distinctive feature, although the markets in which the competence is active and slow are considered more open than the markets in which some companies dominate the panorama. A third factor holds that it is with the influence of cultural factors such as religion that can promote a more open market or avoid the participation of entities that are not connected with the dominant culture.
The idea behind an open market is to allow for the full participation of any entity that wishes to participate in the buying and selling process. The defenders of this focus affirm that this degree of openness is beneficial to the economy, and that consumers and buyers participate in whatever level they allow their financial recursos. In theory, this means that any person is free to get involved and benefit from this participation, a situation that ultimately improves the level of life of all the parties that are active in the market.
Open market critics favor the restrictions as a medium to avoid the market becoming unstable. Here, the intervention of the governments through the establishment of standards and regulations that govern the market, and the promulgation of various taxes and fees that must be paid in relation to specific purchases and sales, is considered as a medium to increase the chances of those events tales that took place in the world economic depression of the decade of 1930 were not repeated. Sometimes known as protecionism, this strategy does not oppose the competence in the market or the participation of any person who has the resources to participate, but believes that the restrictions are necessary to protect the interests of all interested parties.
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