Boston, Massachusetts , is one of the most popular cities of the USA. It is the largest city of New England and is the unofficial capital of the region. The renowned colleges and universities surrounding the city have a major influence on the city of Boston and they also prove to be the largest employers of the Bostonians . According to a 2003 report by the Boston Redevelopment Authority (BRA), the large number of national and international students enrolled Boston's colleges and universities contribute $4.8 billion annually to the city's economy. The industrial activities centered on Boston consist of mainly biotechnological and software and hardware companies . Being one of the most popular tourist attractions of the country, tourism also contributes to a sizable chunk to the economy of the city of Boston. Other important industries around Boston include the financial services, especially mutual funds and insurance . One of the top investment companies of the world, Fidelity Investments , is based in Boston. The city is also the regional capital of the Bank of America and the Sovereign Bank and is a centre for venture capital. Contributing to major financial activity for the city of Boston is the Port of Boston , which is a major seaport in the USA and is the oldest operational fishing and industrial port in the Western Hemisphere.
The markets of Boston operate mainly on the rules of the free market, which is the rule across the whole of America . The institution of the free market is defined as a market where the decisions of what to produce, for whom to produce and how much to produce is not influenced by government decisions and is based on the rules of the market, i .e. the interaction between the forces of supply and demand .
Some of the key markets in Boston would include :
• The Money and Financial markets - One of the key components would be the Boston Stock Exchange (BSE) , which is a regional stock market, and the third-oldest stock exchange in the USA built in 1834 . The BSE is the regulator of all trading on the Boston Equities Exchange LLC and the Boston Options Exchange LLC trading facility. BSE is a self-regulatory organization and is aimed at enhancing market integrity through the enforcement of the Federal Securities Laws and the Exchange Rules .
• The Goods and Service market - Being a major economic centre of the USA , it is a major trading centres for the New England vis-à-vis the whole of Massachusetts . According to the U.S. Department of Labor's Bureau of Labor Statistics, the Consumer Price Index for all Urban Consumers (CPI-U) in the Boston metropolitan area increased by 3.3% from 2004 to 2005. This was mainly attributed to the rising energy prices, without which the all items index would have risen by 1.9%. The index is mainly constituted by expenditures on food and beverages, housing, apparel, medical care, recreation, education and communication . The CPI-U for the U.S. City Average rose by 3.4% in 2005.
International trade around the Boston metropolitan area rests on the Port of Boston which where a large of consignments from abroad reach the United States making Boston a major trading centre of domestic and international goods in the USA . One of the major builders of the Massachusetts economy by promoting international trade, the Massachusetts Office of International Trade & Investment (MOITI) and its sister concern, the Massachusetts Export Center works to market the state's business internationally through importance on export promotion and attracting foreign companies to invest in the state.