A market for a factor of production such as labour, capital, or a raw material. In most economies factor markets have a variety of organizational forms. Many raw materials, such as oil and steel, are internationally traded on competitive markets. Markets for labour can be competitive but often involve negotiations between employers or groups of employers and trade unions. There is evidence that some labour markets for specialized skills are monopsonistic. Negotiations over the rent for land and the terms on which capital is made available to firms are frequently decentralized.