Difference Between Industry And Market
The term “industry” is used to group companies that make the same kind of products or perform the same type of services. For example, companies that manufacture automobiles and other vehicles are part of the automotive industry. Those that process milk, butter, and cheese are in the dairy industry. Banks and loan companies are part of the financial services industry.
Kinds of Industry
Industries mainly produce goods or services. But some produce both. Manufacturing is an example of a goods-producing industry. Health care, insurance, and real estate are examples of service industries. The information industry offers goods, such as printed magazines. It also offers services, such as online news.
Market, in economics, a point at which the forces of supply and demand converge to establish a price for an article of trade. It may be a physical center, usually designated by the term “marketplace,” or it may represent simply a group of interested buyers and sellers, who are scattered geographically and whose bids and offers set a price.
Public markets developed from the fairs of medieval Europe, particularly those in England, France, and the Low Countries. In those nations, fairs served principally as a means for selling the agricultural produce of the area. This type of market has existed for years in the United States, one of the oldest being in New Orleans. Since World War I, however, mass distribution and modern refrigeration and processing methods have led to a sharp decline in the economic role played by such markets.
Organized stock exchanges or securities markets, commodity markets, and the money market are also examples of public markets. A stock market enables investors to buy or sell bonds or shares of stock. Of more than a dozen securities exchanges in the United States, the largest is the New York Stock Exchange. Commodity markets deal in contracts to buy or sell foods, metals, or other goods. The Chicago Board of Trade is the largest association of commodity traders in the United States. Money or currency markets are concerned with large-scale money and credit transactions by banks, either within a single country or internationally.