Competition of Funds, Essay Example

Whether a “marketplace” is defined as a given geographical location such as a town or county, a state, a region, a country or a particular industry, the amount of money that is available for circulation within it is limited. The concept of “competition of funds” relates to how limited financial resources are distributed.

An example of how this phenomenon works might include two museums competing for a limited amount of grant money.  In this case, the marketplace would be all the potential grant money providers willing to entertain applications by museums. Museum A would need to ensure that their grant application is well-written and clearly defines the goals, benefits, and evaluation methods of the goods or services to be funded by the grant. If this application is not prepared well, or if their goals are not appropriate, the competition for the limited funds of the grant providers might go to Museum B instead.

In the business world, a fast food restaurant like McDonalds might install a play center for children in an effort to differentiate their facility from other restaurants with similar menus and prices.  Consumers only have so much money to spend and fast food restaurants are all competing for those dollars.

The concept of competition of funds is probably not seen anywhere as vigorously as within the government.  Cities, states, and the federal government all fund a myriad of programs, services and infrastructure.  All the agencies that receive these funds are in constant competition for the limited cash that is available.  The competition of funds within a city, state of national government is fierce and the fight for funds almost visceral. The second most intense competition of funds is probably found within the banking and lending industries.