Trade

Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.

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Trade exists for many reasons. Due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have an absolute or comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations.

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Goods: REDIRECT Good (economics)...

Service: :This article is about a term used in economics. For other uses, see service (disambiguation)....

Market: In general parlance, a market is a location where those willing to pay a price for something meet those willing to sell it. In marketing, a market is the sum total of potential buyers of a product....

Trade related Images and Photos (experimental)

Trade	World Trade Center	World Trade Center c.1985	World Trade Center Path
Tea Trade in China	Socialist Trade Union Poster	World Trade Center and Brooklyn Bridge	Our Export Trade is Vital: Buy Victory Bonds c.1914
Fur Trade in Alaska Fort Saint-Michel 1867	Foreign Trade Zone No. 1: New York City Department of Docks	The Port of Trade Le Havre 1892	The Flintstones Pebbles™ Plush