free market

(noun)

Any market in which trade is unregulated; an economic system free from government intervention.

Related Terms

Examples of free market in the following topics:

  • Economic Systems

    • Most other countries today are free market economies, with some aspects of a planned system (such as government owned and allocated healthcare).
    • Today the world largely operates under a global economic system based on the free market mode of production.
    • The economic system in which most businesses are owned and operated by individuals is the free market system, also known as "capitalism. "
    • In a free market, competition dictates how goods and services will be allocated.
    • Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring social justice and a more equitable distribution of wealth or ameliorating market failures.

  • Free Enterprise

    • A free-enterprise system is based on private ownership as the means of production.
    • Political scientist Ian Bremmer describes China as the primary driver for the rise of state capitalism as a challenge to the free market economies of the developed world, particularly in the aftermath of the 2008 financial crisis.
    • In all three cases, the state is using markets to create wealth that can be directed as political officials see fit.
    • The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy.
    • Explain how free enterprise leads to the economic system of capitalism

  • Trading blocs and agreements

    • The North American Free Trade Agreement (NAFTA) further boosts export sales by enabling companies to sell goods at lower prices because of reduced tariffs.
    • Such agreements are designed to facilitate trade through the establishment of a free trade area customs union or customs market.
    • Free trade areas and customs unions eliminate trade barriers between member countries while maintaining trade barriers with nonmember countries.
    • A common market provides for harmonious fiscal and monetary policies while free trade areas and customs unions do not.
    • Experience in multilingual marketing would help non-European companies succeed in this gigantic market.

  • Industrial Purchasing Behavior

    • To "corner the market" is to have the greatest market share in a particular industry without having a monopoly.
    • 2010: Armajaro and the European cocoa market On July 17, 2010, Armajaro purchased 240,100 tonnes of cocoa.
    • If the rest of the market senses weakness, it may resist any attempt to artificially drive the market any further by actively taking opposing positions.
    • Currency can be either a commodity money, like gold or silver, or fiat currency, or free-floating market-valued currency like US dollars.
    • In Summer 2011 Jim Cramer drew the public's attention to a corner of the oil market.the cartel of nonconsumers who are using oil futures as part of an investing strategy that includes endless attempts to corner the market for crudes in order to make fortunes for them. that's what they did in 2008 when they cornered it and took it to $147. we know the futures markets are thin for oil. almost all the execs on the show confirm to me these futures are unreliable and easily manipulated. the price can be the benchmark for real commerce, meaning they can make a lot of money so long as no one seeks to bust the cartel price.While Cramer points out frankly that this is a corner (calling into question the proper working of the free market), official sources avoid calling this situation a corner.

  • Mass marketing, direct marketing, and Internet marketing

    • Mass marketing is distinguished from direct marketing in terms of the distance between the manufacturer and the ultimate user of the product.
    • Mass marketing is characterized as having wide separation and indirect communication.
    • This type of marketing is experiencing tremendous growth.
    • Apparently, marketers have tired of the waste associated with mass marketing and customers want more personal attention.
    • A modified type of direct marketing is represented by companies that allow ordering of product by calling a toll-free number or mailing in an order card as part of an advertisement.

  • Common Markets

    • A common market is the first stage towards a single market and may be limited initially to a free trade area.
    • The European Economic Community was the first example of a both common and single market, but it was an economic union since it had additionally a customs union.
    • Its aim was to bring about economic integration, including a common market, among its six founding members: Belgium, France, Germany, Italy, Luxembourg and the Netherlands.
    • A common market is a first stage towards a single market and may be limited initially to a free trade area with relatively free movement of capital and of services, but not so advanced in reduction of the rest of the trade barriers.
    • The six states that founded the EEC and the other two communities were known as the "inner six" (the "outer seven" were those countries who formed the European Free Trade Association).

  • Sampling

    • A free sample, or freebie, is a portion of a product (i.e., food or makeup) given to consumers in retail stores or other outlets.
    • Sometimes samples of non-perishable items are included in direct marketing mailings .
    • The expansion of online marketing with regards to promotional giveaways has facilitated the rise of "freebie websites" that seek to aggregate all promotional free sample offers in one place.
    • These sites will often compile free product samples from all over the web and categorize them by type.
    • Marketers who are considering sampling their next product introduction should define the objectives of the sampling program.

  • Promotion Strategies

    • These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.
    • Many times with the purchase of a product there are incentives like discounts, free items, or contests.
    • Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.
    • Typically there are four types of market dominance strategies:
    • By navigating this metrics continuum, from Activity-Based to Predictive, marketers can move towards more effective marketing measurement and align measurement and metrics with business outcomes.

  • The Freemium Model

    • Freemium, a combination of the words "free" and "premium," is a business model where the company gives away a free service or software to all customers.
    • Time Limited - example 30 days free then user must pay
    • Freemium has become a popular model for Web 2.0 companies to market their products.
    • Time Limited - example 30 days free then user must pay
    • SignificanceOn 7 June 2011, PC World reported that traditional anti-virus software had started to lose their market to freemium anti-virus products. [ 11]

  • Promotions

    • Promotion is one of the market mix elements, and a term used frequently in marketing.
    • Many times with the purchase of a product there is an incentive like discounts, free items, or a contest.
    • A buy-one-get-one-free scheme may even be used.