One of the greatest rights given to citizens of the United States is the right to prosperity. I am greatly affected by the free market system in my own life, and I use these freedoms of the free market copiously. I own a business called Twin Silos Rabbitry, where I market pedigreed show rabbits. I raise Lionheads, Tans, Holland Lops, and Netherland Dwarfs on my farm and sell them to people ranging from 4-H children to serious ARBA (American Rabbit Breeders Association) showers. I have learned that the power of the free market not only broadens the freedoms for the marketer, but also for the consumer. The free market system benefits our society in three ways. This system encourages growth of individually owned companies while giving them avenues toward prosperity. These companies have rights to protection from unlawful harm from competing companies. The free market also strengthens international relationships with other countries, which keeps trade strong through the exchanging of much needed goods not grown or produced in other countries. Finally, it promotes a need for advanced education of people while creating a need for strong leaders.
In the United States, we are extremely fortunate to live under a free market economic system that doesn’t use fear to control its people. In a command economy, free trade is forbidden, and the government has too much power upon its people and the goods produced by the people. The government controls imports and exports; a license is needed to ship and receive goods. People live in fear and have few freedoms that we enjoy today in the United States. In the free market system, it is all about the choice of the people, where as in a command economy, those choices are made by the government. The free market system is diffused, which means that the people make decisions about what is produced.
Businesses can set their prices and allow them to fluctuate depending on the economy. This is not so in a command economy because the prices are fixed or controlled by the government body. In a command economy, the production numbers are not determined by supply and demand, but by the state and committee. The quality and quantity of products in a command economy diminish, which put the well being of the consumers at low importance. For example: A Russian woman got severely ill by drinking from a cup in a vending machine. This was a common cup used by all consumers of that vending machine, and it wasn’t properly sterilized. This woman almost died because of the poor quality and lack of quantity of goods being produced in the communist government-controlled industry. The problem with the command system is that it enforces a misallocation of resources. This means that this type of economy is slow to respond to the needs and demands of the people. In the free market economy, the health and well being of the people are very important because if a consumer is dissatisfied, the business owner loses profits to competing producers of those products. Profitability directly corresponds to having the products and value desired by consumers. Competition between businesses drives the market toward better products and the necessity for more efficient production methods. The marketer also has the ability to make decisions about what he or she wants to make and also how much he or she wants to sell and where.
I openly incorporate the free market system in my business by keeping the well being and satisfaction of consumers as a top priority. As a business owner, I want my customer’s patronage, and I want them to be satisfied so they can recommend me to future buyers. I make sure I give them an unforgettable buying experience. I invite them inside of my rabbitry so they can see for themselves my entire operation. I show them the overall cleanliness of my facilities and the health of the individual animals. I let them see all forty rabbits hopping in their individual cages swinging from wire supporters. The faces of my customers light up as I give them a tour that most breeders would not offer them, which allows my business to be distinctive and different from other competing rabbitries. I give customers my individual time to show them the quality animals I have to offer them for sale, and I also make sure that I’m friendly and patient with my customers because I want to earn their business and satisfaction. I have learned that it is crucial to gain the respect of your customer because a satisfied buyer will always tell a few friends about the service provided. That always means more business to come!
When the numbers of competing companies increase, the competition rates rise as well. Fortunately, there are certain protection rights a company can put on their products. These are called trademarks, trade secrets, and patents. These help protect companies from infringement and unlawful stealing or copying of a product. Patents are the strongest protection afforded on a brand new invented product. A patent means that for twenty years the rights of a product’s author or inventor will be protected. No other company can steal a design or produce the patented type of product.
A trademark is a protected phrase or symbol that can be deemed as personal property. No other company can use it, as they would be unlawfully submitting their product as someone else’s. A trade secret is a protected recipe or design of a product that only family or producers of a company know so that they can consistently make a product without the fear of a competitor ever matching or stealing their exact product design. I can greatly understand the importance of having a trademark because when my family purchased our farm, we had our farm name registered and protected so that no other farm could have our exact name, which allows for easier product recognition and higher security for the protection of our goods.
This protection prevented other businesses from marketing goods under our farm name. Like a person, a business has to work hard to establish a good name and reputation, and in many cases, success and good reputation may take many years to establish.
Farms have their own identity in the same way that we have our own social security number. If another business were to market their products under the same name that would be an infringement of that trademark. Their products might be confused with ours. The consequences are lost earnings and damaged reputation. Fortunately, the free market is about having a business protected and about having equal opportunity and prosperity. Therefore, for the protection of all companies, it is crucial to have trademarks, trade secrets, and patents.
The free market strengthens international bonds by promoting peaceful trade with other nations. This increases communication between countries, and trading allows goods that are grown or produced only in one country to be traded for goods that another country needs. In some countries production costs are lower. This results in lower prices for consumers and increased profits for the producer. Trading with other countries creates interdependence, and promotes diffusion of different cultures. People then assimilate new styles of clothing, architecture, products, and also different foods when trading internationally. Parts of products can be produced for lower costs, so that creating a product costs less than if completely produced in a single country, also called global sourcing. Global sourcing has many advantages like increasing amounts of vendors and marketers to stimulate competition, acquiring new skills that aren’t domestically available, and increasing the amount of goods. This is an advantage for entrepreneurs because they will spend less to produce the product and therefore the prices will be low and competitive for consumers.
In my rabbit business, I raise breeds that at one time originated from different countries. My Mini Lops or Klein Wider, were once from the country Germany, and my dwarf rabbits originated all the way from the Netherlands. If it weren’t for trade, my rabbits would have never made it to the United States. Although many rabbit breeds did not come from the United States, the American Fuzzy Lop did. American Fuzzy Lops became popular all around the world because they make great pets and have great wool quality which other countries used to make clothing articles. In turn, Americans also traded for new breeds of rabbits from other countries that provided my Tans, Mini Lops, and dwarfs. In fact, right now the Thrianta, a brand new rabbit breed, is being imported to the United States today from parts of Europe. This breed of rabbit never existed in the United States, but because of the free market and peaceful trade, the Thrianta rabbit is being raised by United States breeders for A.R.B.A. recognition.
I also learned about supply and demand in the rabbit business, and raised breeds that were not commonly raised, and was able to create a stronger market with increased opportunities for profit. Since other competing rabbitries did not raise the same breeds I did, the exotic breeds I raised were in high demand by the public. I learned how to create a very successful business.
Free trade works because countries can sell goods to each other with minimal governmental interference or restrictive tariffs. This encourages people to trade with each other and they can do it without heavy taxes that would otherwise discourage them from doing so. Free trade also benefits both countries because much needed goods are received by both sides. The prices do not have to be inflated because of the increased supply of goods and competitive prices, if goods are affordable and in high supply, it prevents the occurrence of a black market.
International trade also allows for technology and ideas to spread rapidly. When two countries trade their products, they are also spreading their ideas, knowledge, and their technologies. The world becomes much more communicative in the presence of the free enterprise system. If a country becomes interdependent on another and they are needy for a particular resource, then they will keep the relationship very strong with that country. An example would be our relationship with the foreign providers of our oil and gasoline sources. Since the oil providers need US dollars for their economy, they keep their relationship strong with the US, and since we need their oil, we keep our relationship strong with them. It is very important for the nations of the world to stay in contact with each other, especially in the business world. People must keep strong ties with each other because some companies are international, or are owned by other businesses in completely different countries.
Finally, the free market system demands higher education for people, as it increases opportunities for them to prosper and flourish. Individuals learn to become communicators, leaders, promoters, professionals, and inventors. The business and marketing profession is a challenging business that requires mature-thinking, sound decision-making, and a competitive, persuasive nature. Not everyone is suited to take on this profession, those who enter it will need to shape their business as close as they can as a paragon, or a model of perfection for their consumers. The very gifted men and women who enter this profession need to be adroit leaders to balance the challenges of production and the needs of the consumer.
The free market system places power in the people’s hands. The voluntary system allows people to make their own decisions, fix their own prices, produce their desired quantities, and also have the freedom to make changes to any of the above. This system allows for a competitive market while also allowing for new businesses to grow at the same time. Everyone has the freedom to make his or her own decisions under the free market.
People become strong leaders representing their countries interests and further serve their country by producing opportunities under the free market system. This is a very important role for entrepreneurs to have because they are providing employment and fulfilling needs. The importance of these entrepreneurs is immense. It is because of them that we have large varieties of goods at competitive prices. The quality of products that are produced under the free market are much higher than in other countries. We have a lesser probability of getting ill or hurt by our products, unlike the Russian woman with the common cup in the vending machine. This is too risky in the free market because if a product is deemed harmful, the consequences are loss of market share, product recalls, and legal action.
Since starting and maintaining Twin Silos Rabbitry eight years ago, I have learned how to make mature decisions on my own. I recognized the importance of keeping records, writing and storing receipts, keeping stock inventory lists, and recording all yearly expenses verses my profits. I learned how to confidently handle and exchange money and give customers a receipt. I also recorded all my sales so my parents could document their farmland tax assessment. I learned how to be confident and friendly when working with customers. Consumers want someone who is outspoken and knowledgeable about what they are selling so that they also feel confident in what they are buying. I answer the customer’s questions and always show them patience when they are with me. This pays off at the end because customers often comment how friendly and helpful I was to them. I have taken a leadership role in my business because I own it! I manage, maintain, and make financial decisions for my business. Through my experience of running a business, I have learned through trial and error what decisions were beneficial, and those that were poor.
Purchasing stock costs me money from my profit, but my mind is always calculating the pros and cons of each action. In order to be successful, having the right stock at the right time is essential to meeting the needs of my customers. My responsibility has increased since I run something of importance solely on my own. I feel that right now I am giving myself an early taste of the world by running a small business at my age. I take chances and risks all the time in hope that my rabbitry will grow in prosperity. I feel that I have been able to become a strong leader and find maturity at a much younger age than many other teenagers.
The rights that people have under the free market are numerous as said by a Ramapo professor during my LAB seminar; he said everyone has an equal chance for prosperity. “For a free enterprise system that works gives rights to own and acquire property, and do so free of infringement and trespass so everyone has a fair shot” (Dr. Murray Sabrin, marketing professor of Ramapo College). Through his words, I will always remember the freedom and opportunity the free market gives to its people.
The free enterprise system is in the hands of the people. It grants rights to own, maintain, and prosper in a business. Through interdependence, relationships are created and improved by the free enterprise system. Additionally, the free market allows flexibility to react to market change in the absence of price controls. The free market promotes greater economic opportunities for citizens and the need for educated workers. These people become the strong leaders of our world. Since taking the Learn About Business course, I now understand how my rabbitry business thrives because of the freedoms and right to prosperity I gained from the free market. It doesn’t matter if one markets rabbits or medical equipment because each individual business has equal freedom in finding success and prosperity. The free market system is a powerful economic system that allows the power to be in the hands of the consumer.
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