Politics of market designs as explained by Makenzie in 2008 give more light on how economic agents are created. Economic agents facilitate economic activities through a pool of resources to make production, distribution, and consumption of goods possible. According to him, the real markets work in a way that makes the market free for all the economic agents to eliminate the gap that exists at the time of need. The late modern capitalism to him encouraged dependence on the instruments of doing business to make trade easy. He advocated that whether it is by equity or debt, the company will be financed at the end of the day. The operations have to continue through whichever financing mechanism in place.
He majors his analyses in the working of the financial world because he believed that finances are the chief contributor to any economic progress. His argument is to put in place the processes and functions that investments do in the market condition. He highlights the crises that may arise as a result of the mismanagement of finances because they are so fragile. Additionally, he puts into consideration the many examples of firms that have had their financial networks well established because they followed the principles that govern commercial operations. The economic agents are used as benchmarks for determining the relationship between the workability of the financial instruments and other market determinants.
According to him, the individual participation of economic agents and the markets they operate in must be brought to full analysis to be understood in details. Their technical nature must be known so that the affected parties can understand what to do with the abnormalities that can exist in case of any. This knowledge enables the participants to have a full understanding of what they are expected to do. They are also presented with circumstances in which they are forced to react to tough financial times with a solution of how they are supposed to introduce themselves. The effect of this is the constant preparedness of economic times that may not be favorable to the business.
In the material sociology of markets where he majors on, he emphasizes that the technical studies have a significant impact on the way the economic agents view the market. The mechanical systems and human beings who contribute to the functionality of the market need to be in harmony to make things be done with much order. The people in the market system must use the available resources to technically handle things in a way that is bound to bring an economic value in the long run. This is possible through setting mechanisms that make the economic agents always prepared for all perils.
The case studies of the markets which are already doing well are used as benchmarks to make people aware of how to form startups. The market agents must employ the current technology in the financial analysis of their business to match the needs of the contemporary world. This is because things are changing in the business world due to the advancement in technology. Therefore, no economic market should be left behind regarding the use of technology in the financial analyses of the worldwide markets. The implication of technological input means the business will use less human power since much of the work will be computer generated. With this, the efficiency level will be guaranteed compared to the other areas where the analog system is the order of the day.
He was mainly interested in the way the financial world makes use of the market principles to make the market designs offer the best service to the people who need them. The material and financial mathematics must interact well to make things work in the long run. This means that there needs to be the best apportionment of all the commodities versus their prices to make trade possible. The need to do this is based on the fact that the economic goods have some commercial value which needs to be put into consideration.
The day to day behavior of the markets was his point of interest since the components kept on changing depending on the economy. The derivatives of the market were of vital importance to him because they influenced the way the economic agents worked. The need to study how the economic agents could be formed was made possible by the gaps that existed in the market. These gaps could be filled by different marketing agents who could make the demand-supply equation balanced over time. In this regard, the mathematical technologies were put in place to make the market efficient through the pricing mechanism.
Conscious human choices are so vital in making any economic choice. These choices are based on rationality which is the guiding principle of any economic opportunity. He argues that the consumption part of economics is based on the best decision that consumers can have because they are given some form of preference. The human mind must be involved in the judgment of options to come up with that has a better economic implication. All aspects of humanity must be put into consideration because they are critical in the choice of the best agents to fit in the financial system.
Technological and social issues will influence economic agents in the market. Technology makes the economy to grow since it facilitates a fast and efficient service delivery. Through it, the market can expand at an alarming rate as well as reaching greater heights. He explains that the economic agents that invest in the technological aspect are most likely to make ends meet in their endeavors. This is because technology is one of the factors of production and hence it principally plays a crucial role in making things work. It shouldn’t be left out in any economic decision since they impact positively to the economic agents.
The social setting of an economy has an influence on the choice of economic agents. The culture, way of life, norms, language among other social aspects are to be put into consideration in determining the communicative approach to be used to see how the market will work. The market agents must factor out the environment in which they have to operate in because the receivers of their actions have a different social setting. This implies the need to have a system of knowing where to place and find the economic agents since differences may occur when expectations of seeing them in the wrong social setting occur.
Market creation is based on the economic outlook that makes sure the environment in which the market will be formed has some financial implication. Based on how he argued, a more significant political spectrum needs to be drawn in the economic field to identify the possibilities of the success of the economic agents. The overall effect will concur with the fact that the political economy of a state plays a significant role in making economic agents. Politics lead to policy formulation as a result of the policies that are put in place to control financial resources. The consideration of what needs to be tackled at a specific time means it’s the decision of the political class which should be considered because it represents states power.
An economy of markets be perceived from different angles ranging political, social and religious perspective. The international standards for marketing, however, remain almost the same. This is because users who have everyday needs universally consume the goods and services produced. The political aspect influences all the other facets because political power tends to control the economic resources that are found in the market. However, this is usually based on principles that regulate financial decisions at a specific point in time.
The desire to have economic agents in a conducive environment is for ensuring there is a fair play of the economic activities. He emphasized that a financial market must be governed by rules which are vital in instilling discipline in the agents. These rules establish the threshold which should be used to promote fairness and excellence in the market set up. Strict measure informs of fines and penalties should be put in place to make the firms disciplined all the time through adhering to the laid down principles from a common ground. This is one way of favoring the small and starting economic agents who may not have the muscles to compete if the rules do not apply.
According to him, the material market is purely controlled by the financial world which at the end influences the pricing mechanism. He says that only the business world affects the material existence of people. The finances are used as instruments of acquiring the materials which in turn empowers the economic agents in the market. The financial power makes the people have the ability to doing some transactions which have an economic value. These transactions are done in a market set up which is full of participants. The presence of information regarding what is offered in the market makes the flow of activities possible which boosts the economy in the long run. The market forces of demand and supply play a part in these operations assuming the market is operating under normal circumstances.
Because the financial workers are so specific in the way they do their things, the market participants must follow the business principles that are put in place to make the economic agents have easy work. The market deals with real stuff because the financial world is real and is depended on facts. The work of the financial determiners in the economic agency is to bring a reconciliation mechanism between the real and variable expectations as far as the information in the market is concerned. This calls for a well-established pricing mechanism which factors in all the excellent and services regardless of their nature.