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Trade: 3. Trade 3.1. Definition and Factors. 3.2. Domestic Trade. 3.3. Foreign Trade

Trade involves the sale and purchase of goods and services between producers and consumers in exchange for payment. There are two main types of trade: domestic trade which is within a country, and foreign trade which is between countries. Domestic trade includes wholesale traders who buy from manufacturers and sell to other businesses, and retail traders who sell directly to consumers. Foreign trade involves imports, which are goods purchased abroad, and exports, which are goods sold abroad. The main organizations that govern foreign trade globally are the World Trade Organization and regional trading blocs.

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156 views2 pages

Trade: 3. Trade 3.1. Definition and Factors. 3.2. Domestic Trade. 3.3. Foreign Trade

Trade involves the sale and purchase of goods and services between producers and consumers in exchange for payment. There are two main types of trade: domestic trade which is within a country, and foreign trade which is between countries. Domestic trade includes wholesale traders who buy from manufacturers and sell to other businesses, and retail traders who sell directly to consumers. Foreign trade involves imports, which are goods purchased abroad, and exports, which are goods sold abroad. The main organizations that govern foreign trade globally are the World Trade Organization and regional trading blocs.

Uploaded by

Paola Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TRADE

3. TRADE
3.1. Definition and factors.
3.2. Domestic trade.
3.3. Foreign trade

DEFINITION
Trade is the sale and the buy of merchandise and services between producers
and consumers in exchange for payment and it is aim is to meet the populations
needs.

(El comercio es la venta y compra de mercancías y servicios entre productores


y consumidores a cambio de un pago)

FACTORS
Supply and demand: Supply and Demand is one of the core strategies used
in trading. It focuses on the ancient laws of supply and demand and how price
moves in a free-flowing market

(La oferta y la demanda es una de las estrategias básicas utilizadas en el


comercio. Se centra en las antiguas leyes de la oferta y la demanda y en cómo
se mueve el precio en un mercado que fluye libremente.)

Merchandise: or the goods and services for payment.

Payment: payment is for the merchandise acquired. In the past, bartering was
used. Today, money is used along with other means of payment, such as
cheques, credits cards, etc.

Market: or also place where the sale and the buy is undertaken. Are 2 types
of markets; the physical one ( like a shop ) and the abstract one ( like a stock
market ).

DOMESTIC TRADE
Domestic trade is the exchange of domestic goods within the boundaries of a
country. Two categories; wholesale trader and retail trader.
-WHOLESALE TRADER: buys large quantities of merchandise directly from
manufactures and then sells them to other traders or businesses.

-RETAIL TRADER: sells directly to consumers from a range of commercial


establishment; (shops, supermarkets, superstores, department stores, shopping
centres and shopping parks)

FOREIGN TRADE
Foreign trade is trade that is undertaken between countries. It involves the
purchase of goods abroad, or imports; and the sale of goods abroad, or exports.

(El comercio exterior es el comercio que se realiza entre países. Implica la


compra de bienes al exterior, o las importaciones; y la venta de bienes al
exterior, o las exportaciones.)

· THE ORGANISATION OF FOREIGN TRADE

- The World Trade Organization (WTO); is the only global international


organization dealing with the rules of trade between nations.

- Trading blocs; is a type of intergovernmental agreement, often part of a


regional intergovernmental organization, where barriers to trade (tariffs
and others) are reduced or eliminated among the participating states.

· FOREIGN TRADE AREAS

- The European Union and the United States; control the export of the
majority of the world is merchandise (50%) and services (75%) .

- Emerging countries; have increased their role in global trade,


especially China, India and Brazil.

- The remaining countries; participate in global trade to a much lesser


extent.

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