Tag: role of market/bazaar

Goods that we purchase from the market are produced in factories, farms and in homes. However, we don't buy the goods directly from the factories or from the farm. We purchase the goods from the traders who buy the goods from factories and farms.

The arrangement between the merchant and the weavers is an example of a putting-out system, whereby the merchant supplies the raw material and receives the finished product. The merchants purchase the raw material and give instructions to the weavers about the kind of cloth that is to be made. This arrangement is prevalent in the weaving industry in most regions of India.

The arrangement between the merchant and the weavers is an example of a putting-out system, whereby the merchant supplies the raw material and receives the finished product. The merchants purchase the raw material and give instructions to the weavers about the kind of cloth that is to be made. This arrangement is prevalent in the weaving industry in most regions of India.

The example of shops in neighbourhood is dairy, groceries from departmental stores, pharmacy, stationery, eatables, fruit vendors, vegetable hawkers etc.

The farmers harvest the cotton which requires high levels of inputs such as fertilisers and pesticides. The merchant supplies the cotton cloth produced by the weavers to exporters. The exporters use the cloth to make shirts and are exported to foreign businessmen who run a chain of stores.

The foreign businesspersons run a chain of stores. These large stores do business strictly on their own terms. These businessmen also have money and own the factories, the large shops, large land holdings, etc. They demand the lowest prices from the supplier and sell the products by making huge profits. The poor also depends on them for various things. Thus, the foreign businessperson gains the most in the market.

The weavers depend on the merchants both for raw materials and markets. At the cloth market, the merchants sell the cloth to the garment factories. In this way, the market works more in favour of the merchants.

Advantages of chain market are as follows:-

Following are the characteristics of a mall:-