The free market system advantages and disadvantages range from a number of issues and benefits. Both the hindrances and the gains are outlined below:
However, this then allows for improvements and alterations which highlight the fact that if something is not successful straight away, changes can always be made. There is always room for new products in a market that is constantly changing, so this allows the door to remain open for future developments.- Advantages of free market economy
Furthermore, a free market economy allows and encourages creativity and entrepreneurial skills. Within the market there are always openings for new and inventive products or services which could eventually lead to major exposure. As I mentioned earlier, there is room for new products all the time but this can alert a sense of creativity. In a sense there is no end to the amount of things that can be created in a free market economy.
- Disadvantages of a free market economy
One of the main downsides of a market economy is the fact that it can become so competitive that smaller companies cannot compete with the bigger brands and so on. In this case, a company can thrive on creating new products but due to the high amounts of revenue they are making, they become the market leader and other companies do not have the chance to compete. This can be very detrimental towards companies who are struggling to get by in the industry.
