Let Us Set The Table For Trading
In the world of business, trading is generally referred as commerce or transaction
. The system of mechanism which allows trade to happen at a particular place and time is known as market. In the olden days the original form of trade was known as barter that is the direct exchange of goods and services. Then slowly the one side of the barter system was introduced by the precious metals, ordinary metals and paper money.
The tradition of Modern traders is usually negotiated through a medium of exchange known as money. Therefore buying can be purely separated from the act of selling and in turn earning a profit out of it. The great invention of the mode of money usually simplified and did the art of promoting trade at the local level within a given region or within the state boundary level or within the nation or at the international level cutting across the boundary lines. In the present generation money has taken the form of credit, non-physical money and paper money.
Trade happening between two traders is known as bilateral trade. When trade between more than two traders happens then it is known as multilateral trade. In trade, the production of goods and services are done on a small scale and in the form of mass production to distribute to larger targeted potential customers.
International trade means the exchange of goods and services happening across national borders. It is more important for a country as it plays a significant part in the gross domestic product (GDP). In the recent scenario, every country is on the pace of industrialization, globalization, liberalization, privatization, allows entry of multinational corporation and outsourcing to increase the trade and commerce of the country.
When trade flourishes in a country it helps in the circulation of money and movement of goods and service in the market. Trade helps the people to get employed and contribute their mental and physical service and in turn earn a salary, wages or remuneration according to the nature of work done. Trade did help in the conversion of human resources into division of labor.
The trading activities in a country are governed by its law. Each country has its own rules and regulation regarding the conduct of trade within the country. Any violation of the rules and regulation plus carrying out illegal trade practice is punishable under the existing law of the country. Those involved in such act are debarred from carry on that particular trade and the existing business certificates are cancelled and license is taken away by the concerned authorities.
Trade should be carried out in a meaningful way which provide useful good and service to the society in general and for the potential customers. The satisfaction of the customers on those goods and services will survive in the market and earn goodwill for long stand in the local and international market. A good trade happens in the world in this form. A traders hard work and commitment in serving the general public with needy good and service with satisfaction is the prime motive for the success of the trade. The art of trading depends on the goods and services traded in the market. A lot of understanding and research is needed to rightly market the goods and service in the market too.
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