Trade

Trade is the activity of buying and selling of goods and services. It can also be called as an exchange of commodity within two persons, organizations, nations and whole of the universal. The place of trade activities takes place is said to be a market. In the beginning this mechanism took place within people. In the olden days, trade has been originated is the form called Barter System. The exchange took place directly within the traders. They exchanged goods for goods. Later currency has been established in the place of goods for purchasing or selling something. Trading is mainly classified into Bilateral Trade and Multilateral Trade. Bilateral trade is dealing within two people or traders whereas Multilateral Trade is trading with many traders.

Trade Types

There are various types of trades. They are Stock trade, Commodities, Staples, Luxuries, International Trade, Arms Trade, Wholesale Trade, Fair Trade, Slave Trade and Retail Trade.

Trade Types - Stock trade or Stock Exchange is a corporate trust or mutual constitution where the traders and the stock brokers are facilitated in trading the stock and securities of the company . Facilities in issuing and redemption securities are also provided by the stock exchange. Capital outcomes like income, dividend payment is provided. The sureties of stock trade include bonds, company shares and unit trust. The stock trading is done in the primary market and trade subsequent to it takes place in the secondary market. Stock market is mostly constituted by the stock exchange. It is also one of the components of global market. Stock exchange plays a vital role in the economy of a nation. It helps organizations in selling their shares to the public for the purpose of expanding its business. It mobilizes the savings of the people s investment, by means of redirection towards the promoting activity of their business. This gives a result of growth in economy as well as productivity increases highly. It promotes chances of investment to the small investors. It provides help to the government in raising capital for any evolution projects. The major stock exchanges around the world are about thirty. Common stock, Preferred stock and Treasury stock are the different types of stocks.

Trade Types - Commodities Trade is the goods related to mining and agricultural products. Fuels, Precious metals, Livestock, Food stuff, Industrial metals, all Agricultural Products having huge range of demand, are examples of commodity. These are product of various manufacturers, in a larger quantity which has uniformity in value as well as quality. The place of this trading is known as commodity markets where the primary goods are exchanged.

Trade Types - Wholesale Trade is the process of selling goods to the retailers, commercial, industrial and other professional business . The person involved is known as the wholesaler. The wholesaler buys goods in a bulk quantity from the manufacturer.

directly and sells it in a lower price, to his retail customers. He acts as a both buying and selling agent. He acts as a mediator between the manufacturers and the retailers.

Trade Types - Retailing is the process of buying things from a wholesaler and sells it to the people. Retailers distribute the goods in small quantity. Retailing is the last person to end the supplying of products. The place where this process is done is known as stores of shops. A retailer buys products in bulk and sells them in a lower quantity. Retailing is of three types. They are markets where the buyer and seller are able to meet each other. The second type of retailing is stores where the products are trialed by the customer before buying them. The last type of retailing is virtual here the orders are made online and delivery is made at the customer s door-step.

Trade Types - Fair Trade is a coordinated social movement upgrades the criteria for international social policy, environmentalism and labor related to the manufacture of tagged and untagged products . It is specially focuses exports from an upcoming countries and established countries. Fair trade has an aim to intentionally work with marginalized workers and manufacturers, in order to explore their position to secure and maintain self sufficiency.

Trade Types - Arm Trade means business between two merchants selling weapons. Arm industry is one of the vast industries, globally. Arm exports played a vital role during the Cold War Era. Few countries have internal trade of arms for its citizens, legally as well as illegal.

Trade Types - Slave Trade is the process of captivating, buying and selling of slaves. This type trade was found only during the ancient period, Slavery took place among different cultures and people. The slaves were transferred among countries. Nowadays it is not found anywhere.

Trade Types - International Trade is the buying and selling of commodities and services globally. It is related with the Export and Importing commodities among nations. It plays a major role in substantial part of the Gross Discount Product, of most countries. International trade regulates bilateral trade between countries and it is executed through the World Trade Organization. In processing International trade, risk occurs through two groups. Political risks and Economical risks are the two main groups. The Economic risks are loss of business, non receipt of payments, rejections of consignment, change of responsibility. The Political risks are validity of import or export license, seizure of company, shortage of funds, ban on goods and loss in transit.

Trade Barriers

There are no trade restrictions within the country, whereas there are many restrictions in connection with trading with other countries. These restrictions are called barriers. These barriers are imposed by the government. The government imposes restrictions on imports at times on exports too. However, these types of restrictions when freed then the traders

will have a free will trading with other countries. There are different forms of trade barriers like Export licenses, Import duties, Voluntary Export Restraints, Import quotas, Subsides, Import licenses, Tariffs etc. Almost all of these barriers have similar working principle. These barriers are felt to be unfavorable and bring down the trade level.

Trade - Policies

The system of Trade Organization is to organize and administer trade. It includes the state control, guild control, technology, free enterprise and infrastructure.

Trade - Organizations

Trade Organizations are associations which involves in the process of trading. They are the trade promoters. The trading organizations are World Bank, World Trade Organization, Free trade zone, International Trade Centre, International Monetary Fund and Trade bloc.

Trade Organizations - World Bank plays a vital role in assisting technical and financial aspects, to the uprising countries in the world. Its aim is to reduce the poverty level globally and improvise the standards of living. It is constituted during the year 1944 with nearly 180 commonwealth countries as its members. World Bank consists of 2 exclusive development establishments. They are IDA - International Development Association and IBRD International Bank for Reconstruction and Development. It provides help to the developing nations in providing financial help and advice.

Trade Organizations - World Trade Organization is the association which initializes the rules for trading between nations. It is aimed to improvise the benefit of the member countries people. Its activity is to provide liberalization on trade. This was started in the year 1995 and having more than one hundred and odd members.

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