Tag: trading

An early form of trade, barter, saw the direct exchange of goods and services for other goods and services. Modern traders generally negotiate through a medium of exchange, such as money. The invention of 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 labor, 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 in the production of some trade-able commodityincluding production of natural resources scarce or limited elsewhere.

Retail trade consists of the sale of goods or merchandise from a very fixed location , online or by mail, in small or individual lots for direct consumption or use by the purchaser. as 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 during the Great Depression of the 1930s.Trade openness increased substantially again from the 1950s onwards .