What is trade: Definition and 48 Discussions

Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct exchange of goods and services for other goods and services, i.e. trading things without the use of money. Modern traders 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 letter of credit, paper money, and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade.
In one modern view, trade exists due to specialization and the division of labour, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trades for other products and needs. Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity – including production of natural resources scarce or limited elsewhere. For example: different regions' sizes may encourage mass production. In such circumstances, trade at market prices between locations can benefit both locations. Different types of traders may specialize in trading different kinds of goods; for example, the spice trade and grain trade have both historically been important in the development of a global, international economy.
Retail trade consists of the sale of goods or merchandise from a very fixed location (such as a department store, boutique or kiosk), online or by mail, in small or individual lots for direct consumption or use by the purchaser. Wholesale trade is traffic in goods that are sold as merchandise to retailers, or to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.
Historically, openness to free trade substantially increased in some areas from 1815 to the outbreak of World War I in 1914. Trade openness increased again during the 1920s but collapsed (in particular in Europe and North America) during the Great Depression of the 1930s. Trade openness increased substantially again from the 1950s onwards (albeit with a slowdown during the oil crisis of the 1970s). Economists and economic historians contend that current levels of trade openness are the highest they have ever been.

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  1. H

    History Where did ancient civilizations get their supply of iron?

    Back in the 19th century British explorers came across Eskimos who were so isolated that they'd forgotten that any other humans existed. Nevertheless they had a little bit of iron that they used to put an edge on their knives. They had no trade so where did they get it? Fortunately their...
  2. R

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    A pump’s power is a product of its pressure rise times volume flow rate. Commonly, a pump is specified by giving the pressure rise, or head, it can provide and the flow rate, such as in gallons per minute(GPM). But some pumps provide the user with a chart that shows how the pressure rise can...
  3. H

    MHB Volume and surface area of "One World Trade Center"

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  4. B

    What Is Logical To Trade Across Interstellar Distances?

    So in a setting with interstellar travel I was thinking about interstellar trade. I know the method of travel dicates what is traded, so I will elaborate below: Constant Acceleration: Refueling is virtually not a concern. Stargates: Ships can accelerate for months to reach just bellow...
  5. G

    Interstellar Trade: Value, Resources & Unobtanium

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  6. Ackbach

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  7. I

    MHB  with Cost,Volumn,Profit and Trade Discount

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  8. Andreas C

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  9. K

    I Space & Time: 2 Qs for Forum Members

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  10. B

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  11. Caolan

    Plasma Industry trade journals for plasma fusion

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  12. J

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  13. 9

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  14. D

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  15. T

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  16. O

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  17. B

    News Free trade reduced to one sentence so even a liberal can understand

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  18. N

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  19. M

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  20. G

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  21. G

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  22. Ƒ

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  23. W

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  24. Andre

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  25. W

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  26. S

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  27. A

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  28. Andre

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  29. T

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  30. J

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  31. J

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  32. P

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  33. K

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  36. N

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  37. P

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  38. A

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  39. S

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  40. I

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  41. russ_watters

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  42. R

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  43. turbo

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  44. T

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  45. D

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  46. J

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  47. U

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