GWC Valves is a company that manufactures and sells different valve types and they are known for durability, high quality and performance and efficiency. It is important for a company like GWC Valves to be familiar with the different market types in order for them to know who to sell to and when they do sell their products, where to go from there. The free market is an economic system where the state only intervenes to collect taxes, enforce contracts and private ownership. Since GWC Valves has sold to companies all over the globe, a free market economy is something that they definitely need to be sure they are apart of. A free market means that the government in countries doesn’t set the price for goods and services. Instead, the suppliers like GWC Valves and fix prices using the forces of supply and demand to back it up and get their moneys worth. Sometimes when it comes to free markets, the government’s interventions become necessary. Some countries that are involved in free markets are found to literally subsidize their farm sectors and the same can be said with other areas where market failure, distortion or the inability of the free market economy to be able to provide nay vital goods and services at costs they cannot afford. This is the only time a company like GWC Valves would not want to be involved in a free market economy.
Luckily, for GWC Valves International that are located in Bakersfield, California, there are free markets in the United States therefore allows them to price their products the way they want and if they had strong competitors they can stand out compared to them with different pricing options. For the United States, the free market emerged due to it being possible with all of the resources they had available and other various endowments that the country had to offer. The long-term success of free market can be seen in countries such as the United States, United Kingdom, Germany and France. Free trade is important to have because it allows developing countries to grow. When nations practice free markets it allows for greater efficiency among its domestic producers and can increase its growth rate. Normally, the free market economy is seen as successful and the only country that free trade will not work for is China because they would essentially be able to take over the world with their unique products and services.