Trade is what we call it when people buy and sell things. A mechanism that allows trade is called a market. Trade originated with the start of communication of prehistoric time.
Trade is what we call it when people buy and sell things. A mechanism that allows trade is called a market. Trade originated with the start of communication of prehistoric time.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Trade is what we call it when people buy and sell things. A mechanism that allows trade is called a market. Trade originated with the start of communication of prehistoric time.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
BB-0122) Syed Owais Ali (SP07- BB-0135) Syed Ashar Ali (SP07- BB-0156) Nabeel Hussain (SP07- BB-0124) Syed Muhammad Hassan What is Trade? Trade is what we call it when people buy and sell things. A producer might sell items or provide a service, and a customer pays them for it. This is trade. Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. Example; Imagine a brother and sister called Tom and Yasmin. Yasmin’s bike has a flat tire but she’s desperate to go on a weekend cycling trip with her friends. Her brother Tom has just been given a new bike for his birthday. Yasmin asks Tom if she borrow his bike and, in return, she promises to buy Tom a CD. Tom agrees to the deal. This is an example of trade. History Trade originated with the start of communication of prehistoric time.
Trading was the main facility of prehistoric people,
who bartered goods and services from each other before the innovation of the modern day currency.
Materials used for creating jewelry were
traded with Egypt since 3000 BC. Continued In the 16th century, Holland was the centre of free trade, imposing no exchange controls, and advocating the free movement of goods.
In 1799, the Dutch East India Company, formerly the
world's largest company, became bankrupt, partly due to the rise of competitive free trade.
In 1817, David Ricardo, James Mill and Robert
Torrens showed that free trade would benefit the industrially weak as well as the strong, in the famous theory of comparative advantage. Continued In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade.
EC was transformed into the European Union,
which accomplished the Economic and Monetary Union (EMU) in 2002, through introducing the Euro , and creating this way a real single market between 13 member states as of January 1, 2007. Types of Trade Retail trade Fair trade Free trade Silent trade Electronic trade Commodity trade International Trade International trade is the exchange of goods and services across national borders.
It is probably the increasing prevalence of
international trade that is usually meant by the term "globalization".
Although there are usually few trade restrictions
within countries, international trade is usually regulated by governmental quotas and restrictions, and often taxed by tariffs. Continued Tariffs are usually on imports, but sometimes countries may impose export tariffs or subsidies.
All of these are called trade barriers. If a government
removes all trade barriers, a condition of free trade exists.
A government that implements aprotectionist policy
establishes trade barriers. Organization of Trade Patterns of organizing and administering trade include:
State control - trade centrally controlled by
government planning.
Guild control - trade controlled by private business
associations holding government-granted power to exclude new entrants. Free enterprise - trade without significant central controls; market participants engage in trade based on their own individual assessments of risk and reward, and may enter or exit a given market relatively unimpeded.
Infrastructure in support of trade, such
as banking, stock market, etc.
Technology in support of trade such as electronic
commerce, vending machines. International organizations European Common Market G8 General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO) International Monetary Fund (IMF) OPEC = Organization of the Petroleum Exporting Countries
Free trade areas
Free trade organizations or free trade areas European Free Trade Association Free Trade Area of the Americas (FTAA) North American Free Trade Agreement (NAFTA) Union of South American Nations South Asian Free Trade Association (SAFTA) The End