1. Competition
Advantages and disadvantages
for the economy
Financial University under
the Government of the Russian Federation
Nataly Cherepennikova, M1-5(U)

2. The concept of the competition
Advantages of the competition
Disadvantages of the competition

3. Every economist and every educated person
know that competition is a very important part
of economy. This process has a big influence on
economic relations and people. Why on people
too? Because all of us are big and small parts of
economic relations. In this case, we are
consumers or producers. So, we make a
competition.

4. The concept of the
competition
Competition is the situation in the
market, where there are a large number
of consumers and producers, which have
their relatively small market share and
they can`t make the conditions for trade
and buying of commodities.

5. Competition has an important role in economy- it forces
organizations to produce goods and services, considering interests of
consumers. So, it forces to consider interests of the whole society.
The developing of the competitive relationships connected with the
spitting of the economic power.
The competition implies exit and enter in the industry without
barriers.
This freedom is required, because the economy can adapt with the
changing of consumer`s tastes, technology and proposed resources.

6. Advantages of the
competition
There are not unjustified price increases
The improving of the quality of goods
The engine of the technological progress
The increase of the economic efficiency
It`s a tool for the achievement of the “price-quality”
balance

7. Disadvantages of the
competition
Good from the other producer may be better
It`s more difficult to draw consumers
It`s a risk to be “pressed out” from the market
Competition is based on the axes to grind
The motivation to crimes and frauds is
increase
It makes businesses definitely unstable
Unemployment and bankruptcy

8. Competition is the driving force in the
economic relations. It gives the push for
the developing in many ways. For
example, we haven`t got the technical
progress or developing in the public
opinion without competition. Competition
in economy has a big influence on many
spheres of living. It makes the progress.