The term trade is called a business through which goods and services are bought and sold, and trade is one of the branches of business, and trade may take place in a narrow range within the local market, or outside the borders of the country, and one of the parties to the trade may be people, companies, or countries, and specializes in Trade in the process of distributing the produced goods, and under the term trade, some regulations are applied locally and internationally, including legal, political, social, economic, cultural, and technological systems, and the concept of trade includes all financial operations from buying and selling of a specific product, and often the trade in the product takes place on an international scale Yen different countries.
Trade is affected in terms of moving goods from one place to another with some advantages that guarantee its continuity and expansion, such as geographical, technological, and economic advantages, and some peoples were distinguished from others by trade because of these advantages, such as the Egyptians, the Sumerians, the inhabitants of Mesopotamia, the Arabs, and others.
Origin of trade:
Trade is closely related to civilization. Trade has emerged with the urbanization of the human being and the expansion of his needs and is not limited to food, drink, and housing, and trade is considered one of the multiple means that people used to meet their different needs, as the country cannot provide all of its needs from the local internal market, so it needs to The exchange of goods between him and other countries, and trade also arose due to other conditions and factors that govern the country and make it difficult for it to produce everything it needs, and among these factors: a shortage of coal, a shortage of wood, a shortage of raw materials, and the climate.
Trade depends on the labor and skills acquired, it is possible to have raw materials and manufacturers ’ skills in a country, and a country can miss these two elements while it has the navigation skill to be a carrier of goods, and the country may combine all the elements, the shores of the Mediterranean were the center The main trade in the world.
Goods were transported to and from Egypt through the Mediterranean, where some goods, such as silver, ivory, wool, and spices from the Arabian Peninsula and the Far East, arrived in Egypt, and Egypt exported large quantities of crops that were famous for it, such as Wheat, barley, cotton, and flax, in addition to pottery vessels.
It was the pioneer of trade in the Arab and Greek world. After the establishment of the Alexandria port, this port became the capital of international trade, and through it, Egypt attracted and settled some Greek merchants.
Main elements of trade:
Any business process needs major integrated elements that make it a successful process, as follows:
1. Preparation:
This is done through a comprehensive study that includes knowing the success rate of trade in the market and exploiting the chances of its success, as this study is based on observation, research, testing ideas related to trade, establishing a financial portfolio, and commercial planning.
2. Performance:
that is, applying the study that was prepared in the preparation phase on the ground, by starting the commercial activity by taking into consideration giving the trade its appropriate size in the market, predicting potential risks and the ability to avoid them, and the ability to adapt to the market and its fluctuations.
3. Review:
In any study of financial trading, whether it is individual or comprehensive trading at the market level, this step is considered important to assess the situation and to correct ideas about the market based on the successes and errors that occurred previously.
4. Reorganization:
by applying the new ideas of trade that were reached through review, and avoiding mistakes that were previously there; For the new performance to be better.
Types of trade:
Domestic trade:
The concept of internal trade expresses the commercial operations in which commodities are traded between merchants on the local market within a specific geographical area, and internal trade is divided into two types, as follows:
1. Wholesale trade:
The quantity of goods traded in this type is large, as the wholesaler buys large quantities of goods from its manufacturers, then sells them to retailers who in turn sell them to consumers, as the wholesaler forms the link between the producers and retailers.
2. Retail Trade:
The quantity of goods traded in this type of trade is limited and in smaller quantities than wholesale goods, where the retailer buys quantities that suit the market need and sells them to consumers, where the retailer forms the link between wholesale and retail consumer dealers.
Foreign trade:
The concept of foreign trade expresses the commercial operations in which commodities are traded between two different countries, and foreign trade is divided into three types, as follows:
1. Export trade:
This trade refers to the activity whereby goods are sold from inside a country to outside its borders.
2. Import trade:
This trade refers to the commercial activity whereby goods are bought from another country and brought to the home country.
3. Transit trade:
This trade refers to the commercial activity through which the goods are transported by an intermediary merchant from the country of origin to another country, To be processed and then transferred to the importing country.
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