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. ...
... 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 ... 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 ...
... 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 increase trade flows and ... The study examines the potential impacts of trade facilitation reforms in four areas port efficiency, customs administration, information technology, and regulatory ...
... 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 ... The domestication of the camel allowed the development of a trans-Saharan trade with cultures across the Sahara, including Carthage and the Berbers major exports ...
... Above Preliminary site plans for the World Trade Center rebuild ... Bush vowed to rebuild the World Trade Center site ... the world that we will rebuild New York City." The immediate response from World Trade Center leaseholder Larry Silverstein was that "it would be the ...
Famous quotes containing the word trade:
“I doubt if men ever made a trade of heroism. In the days of Achilles, even, they delighted in big barns, and perchance in pressed hay, and he who possessed the most valuable team was the best fellow.”
—Henry David Thoreau (18171862)
“My trade and my art is living. He who forbids me to speak about it according to my sense, experience, and practice, let him order the architect to speak of buildings not according to himself but according to his neighbor; according to another mans knowledge, not according to his own.”
—Michel de Montaigne (15331592)
“Until the end of the Middle Ages, and in many cases afterwards too, in order to obtain initiation in a trade of any sort whateverwhether that of courtier, soldier, administrator, merchant or workmana boy did not amass the knowledge necessary to ply that trade before entering it, but threw himself into it; he then acquired the necessary knowledge.”
—Philippe Ariés (20th century)