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Introduction to Commerce

Introduction to Commerce

Trade consists of the exchange of goods and services between several parties in exchange for different goods and services of equal value, or in exchange for money. 

The creation of money as a tool for change has made it possible to greatly simplify trade by facilitating the exchange of money by one party instead of other goods or services such as barter.

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Trade exists thanks to the division of labor, specialization and the different sources of resources. Since most people focus on one small aspect of production, they need to trade with others to purchase goods and services different from those they produce. Trade exists between different regions mainly because of the different conditions in each region, regions may have a comparative advantage over a product, promoting their sale to other regions.

One can distinguish between the retail (or retail), which is dedicated to direct sales of individual products or small quantities to consumers (as a fruit for example) and the wholesale trade  (wholesale), that Are the merchants who sell their products to retailers, intermediaries or other types of businesses.

Since the emergence of the first civilizations, trade has been a fundamental piece in the life of the human being. The Phoenician people, for example, in the tenth century BC without having an army spread their culture throughout the Mediterranean, building large ports and boats, even inventing the alphabet to carry out their transactions. These first commercial explorations revolutionized the relations between territories.

The exchange of goods between peoples has not only been increasing over the years but is growing more and more rapidly. The way it is produced has also evolved, from hawkers to globalization and the big corporations of the 21st century.

In recent years a new revolution in trade has been taking place thanks to the development of new technologies. The online revolution is drastically changing the way of life of the human being. Trade, as might be expected, has been one of the great champions of this revolution.

About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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