Trade is the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.
Trade exists for man due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations.
Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Wholesale trade is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.
Trading can also refer to the action performed by traders and other market agents in the financial markets.
Other articles related to "trade":
... The US direct investment in NAFTA countries is in nonbank holding companies, and in the manufacturing, finance/insurance, and mining sectors ... The foreign direct investment, of Canada and Mexico in the United States (stock) was $237.2 billion in 2009 (the latest data available), up 16.5% from 2008. ...
... Above Preliminary site plans for the World Trade Center rebuild ... Bush vowed to rebuild the World Trade Center site ... New York City." The immediate response from World Trade Center leaseholder Larry Silverstein was that "it would be the tragedy of tragedies not to rebuild this part of New York ...
... A research brief published by the World Bank as part of its Trade Costs and Facilitation Project suggests that Mexico has the potential to substantially ... The study examines the potential impacts of trade facilitation reforms in four areas port efficiency, customs administration, information technology, and ...
... began to flourish, and an inter-region trade began to appear.The desertification of the Sahara and the climatic change of the coast cause trade with upper mediterranean peoples to be impended ... of the camel allowed the development of a trans-Saharan trade with cultures across the Sahara, including Carthage and the Berbers major exports included gold ...
... The fair trade movement, also known as the trade justice movement, promotes the use of labour, environmental and social standards for the production of commodities, particularly those exported ... Such ideas have also sparked a debate on whether trade itself should be codified as a human right ... Importing firms voluntarily adhere to fair trade standards or governments may enforce them through a combination of employment and commercial law ...
Famous quotes containing the word trade:
“International relations is security, its trade relations, its power games. Its not good-and-bad. But what I saw in Yugoslavia was pure evil. Not ethnic hatredthats only like a label. I really had a feeling there that I am observing unleashed human evil ...”
—Natasha Dudinska (b. c. 1967)
“Experience has shown that the trade of the East is the key to national wealth and influence.”
—Chester A. Arthur (18291886)
“I sincerely hope that the incoming Congress will be alive, as it should be, to the importance of our foreign trade and of encouraging it in every way feasible. The possibility of increasing this trade in the Orient, in the Philippines, and in South America is known to everyone who has given the matter attention.”
—William Howard Taft (18571930)