In the present world, the level of competition for limited resources such as the market for the produced goods and services, talented employees and space for expansion has increased more than ever before. This has made the world to appear like a jungle, where only the individuals and organizations which have the necessary competitive skills are deemed to survive and develop. for this reason, most organizations are determined in enhancing their competitive edge, especially by embracing numerous strategies such as product differentiation, seeking measures of reducing the cost of production in order to manage to offer their products at a lower price, embracing technology, and allocating substantial funds for facilitating research and development.
However, the increased level of competition in the market to a greater extent favors the end consumer in a number of ways, including enjoying quality products at a low price as well as having a variety of products to choose from. Actually, through research and development, most organizations manage to identify the needs of the customers in the market, and develop products or services that would not only meet those needs, but also exceed customer`s expectations. This paper will analyze the statement that the market can manage to solve all the society`s needs.
The market can solve all the society`s needs in a number of ways. For example, markets help the government to realize revenues through taxation (which is one of the major source of revenue in most developing and developed countries). The realized revenues enable the government to gain financial muscle, to such an extent that it can easily provide social amenities such as electricity, health facilities, schools, roads, recreational parks, community multi-purpose halls, resource centers, public toilets and recreational parks.
Every society is in need of these aspects, and very few governments have managed to provide all of them in each and every society (Noren, 2004, p. 6). Despite the fact that most financial markets do not have a physical market area especially due to the development of technology, and the financial market prices may not precisely indicate the intrinsic value of a stock especially due to macroeconomic forces, they are also subjected to taxation, which helps the government to deliver services to the common citizen.
In addition, markets help in bringing closer products and services that the society members cannot manage to produce by themselves, mostly due to the high cost of production that they entail, or the prevailing climatic conditions do not favor their production. For example, a particular society may be in need of sugar, but the latter cannot be produced within the society since the climatic conditions in that society does not favor the growth of sugarcane and other raw materials that are required for effective processing of sugar.
Apparently, since in every market sellers present different products and services from various points of production, such a society manage to gain access to those products and services. A society can be in need of a particular product and be in a possible to pay for any price of the product, but without a market for such a product, it is all in vain. Similarly, in the financial market, individuals can be havi