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    This document provides background information on the concept of trade. It discusses how trade involves the transfer of goods and services between entities, often involving money. Economists refer to the systems that allow trade as markets. The document then covers the history of trade, from prehistoric times when it involved gift economies, to ancient civilizations engaging in trade via rivers and seas, to the development of modern international trade networks. It also defines different types of modern trade such as retail, wholesale, and the increase in trade openness over time.

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    A20

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    19 views3 pages
    This document provides background information on the concept of trade. It discusses how trade involves the transfer of goods and services between entities, often involving money. Economists refer to the systems that allow trade as markets. The document then covers the history of trade, from prehistoric times when it involved gift economies, to ancient civilizations engaging in trade via rivers and seas, to the development of modern international trade networks. It also defines different types of modern trade such as retail, wholesale, and the increase in trade openness over time.

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    This document provides background information on the concept of trade. It discusses how trade involves the transfer of goods and services between entities, often involving money. Economists refer to the systems that allow trade as markets. The document then covers the history of trade, from prehistoric times when it involved gift economies, to ancient civilizations engaging in trade via rivers and seas, to the development of modern international trade networks. It also defines different types of modern trade such as retail, wholesale, and the increase in trade openness over time.

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    19 views3 pages

    A20

    Uploaded by

    rokkamkumara
    This document provides background information on the concept of trade. It discusses how trade involves the transfer of goods and services between entities, often involving money. Economists refer to the systems that allow trade as markets. The document then covers the history of trade, from prehistoric times when it involved gift economies, to ancient civilizations engaging in trade via rivers and seas, to the development of modern international trade networks. It also defines different types of modern trade such as retail, wholesale, and the increase in trade openness over time.

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    This article is about the economic mechanism.

    For other uses, see Trade


    (disambiguation).
    Two traders in 16th century Germany
    The San Juan de Dios Market in Guadalajara, Jalisco
    The Liberty to Trade as Buttressed by National Law (1909) by George Howard Earle,
    Jr.
    Business administration
    Management of a business
    Accounting
    Business entities
    Corporate governance
    Corporate law
    Corporate title
    Economics
    Finance
    Types of management
    Organization
    Trade
    Commerce
    Business Education

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    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.

    Traders generally negotiate through a medium of credit or exchange, such as money.


    Though some economists characterize barter (i.e. trading things without the use of
    money[1]) as an early form of trade, money was invented before written history
    began. Consequently, any story of how money first developed is mostly based on
    conjecture and logical inference. Letters of credit, paper money, and non-physical
    money have greatly simplified and promoted trade as buying can be separated from
    selling, or earning. 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 trade for other products
    and needs.[2] Trade exists between regions because different regions may have a
    comparative advantage (perceived or real) in the production of some trade-able
    commodity – including the production of scarce or limited natural resources
    elsewhere. For example, different regions' sizes may encourage mass production. In
    such circumstances, trading at market price 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.
    A picture of a busy market in Mile 12. Lagos - Nigeria
    A busy market in Mile 12. Lagos - Nigeria

    Retail trade consists of the sale of goods or merchandise from a very fixed
    location[3] (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.[4]
    Wholesale trade is the traffic in goods that are sold as merchandise to retailers,
    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 until 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 onward (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.[5][6][7]
    Etymology

    Trade is from Middle English trade ("path, course of conduct"), introduced into
    English by Hanseatic merchants, from Middle Low German trade ("track, course"),
    from Old Saxon trada ("spoor, track"), from Proto-Germanic *tradō ("track, way"),
    and cognate with Old English tredan ("to tread").

    Commerce is derived from the Latin commercium, from cum "together" and merx,
    "merchandise."[8]
    History
    See also: Economic history of the world and Timeline of international trade
    Prehistory

    Trade originated from human communication in prehistoric times. Prehistoric


    peoples[citation needed] exchanged goods and services with each other in a gift
    economy before the innovation of modern-day currency. Peter Watson dates the
    history of long-distance commerce to c. 150,000 years ago.[9]

    In the Mediterranean region, the earliest contact between cultures involved members
    of the species Homo sapiens, principally using the Danube river, at a time
    beginning 35,000–30,000 BP.[10][11][12][13][need quotation to verify]
    The caduceus, traditionally associated with Mercury (the Roman patron-god of
    merchants), continues in use as a symbol of commerce.[14]
    Ancient Etruscan "aryballoi" terracota vessels unearthed in the 1860s at Bolshaya
    Bliznitsa tumulus near Phanagoria, South Russia (formerly part of the Bosporan
    Kingdom of Cimmerian Bosporus, present-day Taman Peninsula); on exhibit at the
    Hermitage Museum in Saint Petersburg

    There is evidence of the exchange of obsidian and flint during the Stone Age. Trade
    in obsidian is believed to have taken place in New Guinea from 17,000 BCE.[15][16]

    The earliest use of obsidian in the Near East dates to the Lower and Middle
    paleolithic.[17]
    — HIH Prince Mikasa no Miya Takahito

    Robert Carr Bosanquet investigated trade in the Stone Age by excavations in 1901.
    [18][19] Trade is believed[by whom?] to have first begun in south west Asia.[20]
    [21]

    Archaeological evidence of obsidian use provides data on how this material was
    increasingly the preferred choice rather than chert from the late Mesolithic to
    Neolithic, requiring exchange as deposits of obsidian are rare in the Mediterranean
    region.[22][23][24]

    Obsidian provided the material to make cutting utensils or tools, although since
    other more easily obtainable materials were available, use was exclusive to the
    higher status of the tribe using "the rich man's flint".[25] Interestingly,
    Obsidian has held its value relative to flint.

    Early traders traded Obsidian at distances of 900 kilometres within the


    Mediterranean region.[26]
    Trade in the Mediterranean during the Neolithic of Europe was greatest in this
    material.[22][27] Networks were in existence at around 12,000 BCE[28] Anatolia was
    the source primarily for trade with the Levant, Iran and Egypt according to Zarins
    study of 1990.[29][30][31] Melos and Lipari sources produced among the most
    widespread trading in the Mediterranean

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