Understanding the Basics of Trade
Auto Beauty Business Culture Dieting DIY Events Fashion Finance Food Freelancing Gardening Health Hobbies Home Internet Jobs Law Local Media Men's Health Mobile Nutrition Parenting Pets Pregnancy Products Psychology Real Estate Relationships Science Seniors Sports Technology Travel Wellness Women's Health

Understanding the Basics of Trade

The importance of trade has become very apparent in such a way that every man must depend on other persons for the things he wants and needs and where one nation must trade with other nation.

Our civilization has been built upon the exchange of goods and services between states or countries. The lives of millions of people in all parts of the world depend so much on the flow of exchange of goods. Commerce and modern day communication have brought the countries of the world closer together so much that we find different parts of the earth make contributions to supply the wants and needs of man and that, more and more, as civilization continues on its march, no single country produces everything that its people need. Thus, no country is denied the benefits of progress. All these are made possible through the existence of trade.

The importance of trade has become very apparent in such a way that every man must depend on other persons for the things he wants and needs and where one nation must trade with other nation. High tech manufacturing companies that are responsible for the growth and development of civilization is only possible where there exist a smooth and efficient system of exchange. With resources in some instances not sufficiently large and in other not diversified enough to meet the demands of their rapidly growing populations, with their industries producing many commodities in excess of the consuming capacity or the purchasing power of their people, modern states have been drawn into the vortex of world economy.

The industrial and commercial nations have been creating outlets for the manufactured products just as they have been establishing a control over the sources of supply of the world’s essential raw materials and foodstuffs.

If it were not possible to exchange the product of one’s labor or services for the products produced by others, each and every one would have to produce what he needs thereby reducing production to an almost insignificant level. Clearly then, increased and specialized production can only continue up to the extent that there is an efficient system of exchange. One such essential requisite is the existence of trade.

Thus, trade may be described briefly as an economic activity which deals with an exchange of goods and services motivated by a desire to gain more profits. While this activity represents as the exclusive prerogative of some governments as those of socialist and communist countries, those which adhere to a system of free private enterprise vests it as the privilege and right of all its citizen.

Looking for shopping-related services? Save when shopping online by using the latet shopping-related services coupons and pay less at popular retailers and brands. Find deals for popular shopping-related services stores using community-sourced coupons and deals.
Need an answer?
Get insightful answers from community-recommended
experts
in International Trade on Knoji.
Would you recommend this author as an expert in International Trade?
You have 0 recommendations remaining to grant today.
Comments (0)
ARTICLE DETAILS
RELATED ARTICLES
RELATED CATEGORIES
ARTICLE KEYWORDS