How free can markets be? (PDF)

Seminar paper from the year 2008 in the subject Business economics - General, University of Applied Sciences Osnabrück (Business Management and Social Sciences), course: International markets, language: English, abstract: Introduction



The present assignment is devoted to the problems of freedom in the markets. We often hear in media, that markets need to be free, especially in our time - time of globalization. There are many international organizations, which were established in order to support freedom of the world market. Statistically, most countries of the world belong to the countries with a free market economy. But are these markets really free? Is it generally possible to find a completely free market? Are there any differences in freedom of the markets, if we compare them in international aspect worldwide? The target of the assignment is to explain, consider, and answer all these questions.

The assignment consists of four parts. In the first part, the definition of a free market will be given. It will be limited, what exactly is to be understood under the term "freedom in a market", and why do we concentrate on the role of the State in this respect.

The second part of the present assignment answers a question why do markets need rules and referees.

The third part of the assignment is a destabilization of the second part. It also explains what kinds of conflicts and interest splits arise between business community and the State.

In the fourth part of the assignment, the international differences in the degrees of freedom in the markets will be shown as well as the reasons for these differences.

In sum, the major aspects of the issue concerning how markets can be free will be given.