Essay on Open Market Economy
Introduction: A free market economy
emerged after the decline of socialism in the Soviet Union and other European
countries as the most dominating economic system. The economy is the basis of a
country. The open market policy has brought worldwide economic revolution which
has widely influenced men’s socio-economic condition and outlook. The free flow
of goods has made the world a village. It has also touched our poor developing
Bangladesh with all its merits and demerits.
Market and market economy: In the
language of economics market is not a fixed place. It is the market price or
balanced price of a commodity or service. The balanced price is fixed through the
action and reaction of the buyer and seller while buying or selling things. The market economy is a two-sided process. On one side there remains the buyer or the
consumer and on the other producer or the seller. Here the demand of the buyer
and supply of the producer can play freely without interference from the
state. It includes two most important factors, perfect competition and total
freedom of the consumers.
Advantages of open market: In the light
of modern economic policy free market economy is an ideal process where there
is no possibility of making illegal profits. In the open market, consumers enjoy the advantage of free choice to buy either local or foreign goods. They can have foreign
goods at cheap rates and become benefited. The free market economy has other
positive aspects too. In facilities a producer to use domestic sources
skilfully. Consequently, a country can develop its unemployed youths into a skilled
labour force. To compete with developed countries and to enter the
international market it finds the opportunity of producing articles of good
quality. In this age of economic co-operation it may enable a country to find
out new markets, earn more foreign currency, and expand the economic base of the
country.
Demerits: In a competitive open market
economy there is the possibility of destroying the weaker local industries. This is
because foreign multinational companies are so strong that domestic industries
of poor countries are not capable of competing with them. In the open market policy, there is an uninterrupted opportunity to create a foreign market. People prefer to
buy foreign goods instead of native ones. So it creates an adverse effect on the national economy. It broadens inequality in earnings wages.
Remedial measures: It is quite
unreasonable to think that a free market economy will turn Bangladesh into a market
of foreign goods. When foreign goods are equal in rate to country products but
are superior in quality, a buyer chooses foreign goods. Sometimes foreign goods
are cheaper than native goods. So to keep pace with free competition in the open
market our manufacturers must produce quality products. Skill in production,
proper management, patronage of the govt. export-oriented industries etc. are
necessary to meet the demand of the free market. It is noticeable that garment
industries of our country, through started lately have been able to cope with
the open market competition for more than a decade.
Conclusion: In fine it can be undoubtedly
said that a free market economy has both positive and negative impacts on our
economy. We cannot ignore the claim of time. In the same way, we cannot avoid the open market economy of the present world. But we should step carefully towards
the open market with our own small and local industries.
