Introduction of Trade: Meaning of Trade

Arjun EP

Published on: October 22, 2020

What is Trade?

Trade means buying and selling of goods and service.

Goods are purchased and sold. Services are hired and rendered.

In other words, the activity of buying and selling or sometimes bartering between the two persons is trade.

The persons may be same country or abroad.

Trading organizations do not manufacture or produce anything.

They purchase and sale finished goods.

The finished goods of one organization may be raw materials or work in progress for other organization.

In such a condition, they purchase and sale raw materials and work in progress also.

Trade may be home or foreign.

Home trade is within same country.

Foreign trade is more than one country.

Definition

According to Oxford Dictionary, “Trade is the activity of buying and selling or exchanging goods or services between people or countries.”

According to A. N. Agrawal, “Trade refers to the sales, transfer or exchange of goods and services.”

Trade is a basic economic concept.

Trade is the buying and selling of goods and services between a buyer to a seller in exchange of money.

International trade allows countries to expand markets for both goods and services in other counties.

We can buy a Japanese and Chines products in our country due to international trade.

We can use Google’s services worldwide due to international trade.

This is the reason why an American consumer can pick a car between a Japanese, German or American car.

Therefore, consumer can buy goods at more competitive prices in developed countries due to international trade.

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Keep in Mind (KIM)

COMMERCE

Trade in goods and services: the large-scale buying and selling of goods and services.

Study of commerce: the study of the principles and practices of commerce.

MANAGEMENT

Administration of business: the organizing and controlling of the affairs of a business or a sector of a business.

Managers as group: managers and employers considered collectively, especially the directors and executives of a business or organization

Handling of something successfully: the act of handling or controlling something successfully.

Skill in handling or using something: the skillful handling or use of something such as resources.

TRADE

Buying and selling: the activity of buying and selling, or sometimes bartering, goods a suspension of trade between the two countries

Area of business or industry: a specific area of business or industry

Occupation: a skilled occupation, usually one requiring manual labor

People in business: the people who work in a specific area of business or industry

Work in commerce: work in commerce as opposed to a profession

Customers: customers or business generated by customers

Commercial customers: customers in business and industry, as opposed to the general public, who purchase products related to their business or industry

Exchange: an exchange of somebody or something for another

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