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What is the definition of trade?


Trade can be defined as that organized process through which commercial benefits, goods and services are exchanged in order to maximize wealth and achieve economic benefits from various commercial operations. The prices of goods and services that individuals or legal entities wish to obtain or trade in later, and the ranges within which commercial operations are practiced vary, as they may be practiced on a micro local scale, or on an international scale, or on a global scale, and this has led to a quantity There is a great deal of trade exchange and strategic trade agreements between many countries in the world based on what these countries possess of unique commercial services or goods that other countries need in the processes of consumption or manufacturing.
Definition of trade
Definition of trade

Definition of trade

It is the exchange of goods and services in exchange for a profit that is between two or more parties and has many and multiple aspects and is based on converting raw materials and primitive products into products that are sold to the consumer with the aim of increasing profit.

Trade is the mediator between the producer and the consumer, and through trade, the profit is increased by increasing the capital by increasing the buying and selling process at the highest price and satisfying the consumer’s desires according to the surrounding environment in terms of the time and place available and the appropriate price for the product.

Hence the concept of commercial exchange, through which goods are exchanged for money between merchants, unlike the past and the barter system between merchants is the exchange of a commodity for a commodity in the modern era. Trade and the process of buying and selling through money has become and the emergence of electronic commerce has led to payment through credit cards to facilitate trade exchange. among merchants.

Through all of this, we can define trade as the comprehensive process of obtaining money, ie achieving gains and savings through exchange between the two parties.

Trade History

Trade is one of the most important and oldest activities practiced by man since antiquity, which has caused great developments in the system of human life for individuals in various parts of the world. The history of trade dates back to 10 thousand years BC, when trade at that time was focused on raising and trading livestock as One of the most prominent food resources, in addition to the possibility of benefiting from livestock in the clothing industry, and over time, barter operations appeared in which a person obtains a commodity he needs from another person in exchange for obtaining a different commodity from him, and thus people benefit from different commodities by exchanging between them. However, the barter process required the existence of different desires between individuals who own different goods, and this matter may not always be available, which leads to the failure of many barter operations between people.

With the passage of time, some commercial operations began to appear away from trading in livestock, such as trading in shells and some valuable materials that began to be used as a means of commercial exchange, similar to what money is used in nowadays. Large quantities of it easily because it is produced naturally and is limited, as well as the ability of the shells that were used at that time as a means of trade exchange to withstand some conditions for their hardness and strength, then some metals began to be used in commercial exchanges such as copper, gold, bronze and silver as a type of currency to provide a measure of Flexibility in obtaining different types of goods and services that people need in their daily lives.

After that, the initial use of coins made of some metals, which were stamped with some ancient symbols that give them elegance and high aesthetics, and these coins were made of gold, silver or other metals, and on the commercial level, some types of ancient trade appeared, such as the trade of silk and fabrics. Paper, and gunpowder, and then began to appear simple commercial markets in which the operations of buying and selling are active, and then the trade operations began to take on an external character through the conduct of trade caravans through the old trade routes to benefit from some of the commodities that are produced in some regions of the world, which contributed to the spread of many of commodities on a large scale and not limited to the regions in which these commodities are produced.

Then the use of paper money appeared in the buying and selling operations in the markets, which began to expand and take popularity and popularity among people. From them and to them, and there have been seasonal commercial trips to some areas and islands to open the doors of trade in the seasons of some commodities so that traders can benefit from these seasons as much as possible, and for these seasonal goods to reach far areas after being preserved and transported in an appropriate manner between the production area and the areas of sale and consumption, and began to hold many From trade agreements, some investment agencies have also emerged that established commercial companies in which many commercial and investment ideas are applied, and become part of commercial reality, which led to the emergence of huge global trading powers over time.

Trade types

There are many types of trade through which commercial activities are conducted, and the entities that engage in commercial activity vary, and the scopes in which trade operations extend, and there are some seasons that are specialized in specific seasonal commercial activities, and in general the types of trade can be classified as following:

1- International Trade

International trade is one of the most prominent types of modern trade, which came with the development of transport and shipping movement between different countries of the world, where trade operations are carried out on the international scale through specific trade agreements whereby the goods of one country are transferred to another country. International trade The spread of different types of goods that are produced in different countries in the same commercial markets, so the consumer in the local market finds multinational production items, and this indicates the presence of an active movement of goods between international countries, and the presence of an active import movement with other countries.

2- retail trade

This type of trade is very active on the local scale, and it mainly aims to distribute goods or services on the largest possible scale by providing a group of distribution lines on the largest possible scale, so that the company producing or distributing the product or services has large quantities that the company wants In achieving cash returns from selling on the principle of retail, retail trade requires a high level of planning and know-how in the reality of local and global markets in order to gain the largest possible market share and achieve the largest possible financial return. The concept of retail trade is usually associated with the sale of individual units of materials. to the largest possible number of targeted individuals.

3- wholesale trade

Wholesale trade is one of the types of trade in which activists are interested in selling large quantities of materials to a specific number or parties. Wholesale trade is the cornerstone of retail trade, as the parties that obtain large quantities of goods or services have the right to resell these goods or services to A greater number of targets in order to reach their beneficiaries, and wholesale dealers aim to reduce the price of goods and services purchased in large quantities and take advantage of the discounts they obtain in subsequent sales, which increases their profit margin.

4- Electronic trade

It is one of the most modern types of commerce and in line with communication technology and the Internet, where e-commerce is concerned with conducting various commercial transactions through the operations of connecting to the Internet. of individuals and organizations, and e-commerce has witnessed many developments in recent years due to the entry of new channels of communication and communication in the e-commerce environment, including social networking sites, which led to greater smoothness in conducting all business operations, which paved the way for the existence of Giant electronic markets with high reliability and credibility contributed to the increasing demand for dealing in e-commerce through the various features it provides.

The importance of trade

The importance of trade lies in the presence of many implications for the entry of trade into the activities of human life, and the importance of trade varies according to the type of trade that is practiced and the implementation in which it is carried out and the parties involved in the business process, and in general the importance of trade in human life can be understood through what Come:

1- Meet people's needs

Through various commercial activities, the general public can obtain the goods and services that they want or need in their daily lives, whether these commodities are basic or luxuries, as the existence of markets creates a state of diversity and the existence of non-limitable alternatives in some cases, as well as the movement of International trade and the global goods it provides of high quality are within the reach of people due to the movement of exports and imports to and from the country in which the citizens live.

2- Improving the standard of life

The active commercial movement in the world has contributed to changing people's lives, providing many clean consumer goods, and some other goods of a sophisticated nature that increase the facilitation of people in carrying out the activities of daily life, and the presence of markets has provided a large amount of suitable goods at reasonable prices as In the past, some commodities were scarce, and their prices were very expensive based on the lack of availability in the markets due to the lack of commercial activity.

3- Connecting the producer to the consumer

The commercial process is a process of linking the product on the one hand and the consumer on the other, where producers seek to meet the consumers’ desires, and after the consumer obtains the commodity he desires, the process of feedback occurs from the consumer to the producer in order to express his opinion and give some hints to improve the product or service that he wants. It is presented in the future, and production companies of all kinds seek to meet the desires of consumers, and search for what is new and keep pace with the current developments in human life to increase its market share in front of competitors and enhance its position with its customers around the world.

4- Finding job opportunities

The business system is an integrated system based on the presence of individuals who have experience and knowledge of the business process in order to achieve the largest possible amount of gains. Accordingly, those in charge of business seek to employ individuals who make the business process a real gain, and this sometimes requires the presence of a large number of employees in order to transport, promote, store, distribute, present to customers, sell and supply the price of materials to the employer, which means that a large number of people benefit financially from the business process, and this is clearly evident in commercial companies that have employees specialized in sales affairs Or advertising or distribution, who have significant contributions to the profits of these companies and the growth of their business over time.

5- Advancement of the national economy

The presence of commercial operations and markets in human societies contributes to moving the wheel of the national economy through the processes of supply and demand for various commercial goods and services. Trade also greatly affects the extent to which economic resources and natural or animal resources are exploited in a particular country by transforming these resources into a tool used In creating economic growth and pumping money into all sectors, as well as the state benefiting from these resources by converting them into commodities whose surplus can be exported to foreign countries through international trade, and this provides the exporting countries with important economic weight with other countries that need these commodities and do not have the resources sufficient for its manufacture.

How to learn to trade

Practicing the business process requires a great deal of knowledge and experience in a specific field, and this leads to the need to search for activists in business operations to help them advance their business in light of the many developments in all sectors and levels, and one of the most important things that must be taken into account in order to practice In the process of trade the following:

1- Starting on a limited scale

One of the most important pillars that one must take into account in order to enter the trading process and learn trade secrets is to start from scratch and on a limited scale in order to gain experience and understand the secrets of the commercial market and not incur losses on a large scale, and with the passage of time and awareness of the state of the markets and the desires of customers And the growth of the business process begins the merchant to expand the business process.

2- Having the courage and wisdom

Being bold in doing business away from recklessness, haste and greed is one of the most important things that a merchant must do when starting a business, as this helps him to seize the opportunities available in the markets and achieve greater profits. A measure of calculated audacity in which a conscious business mind is employed.

3- continuous learning

Where the trader must learn from the mistakes he commits in doing business to avoid them happening again in the future, and he should study some commercial experiences similar to the commercial activity he practices, and learning in trade is not limited to benefiting from personal real experiences or the experiences of others, but rather The matter should go beyond the necessity of acquiring accurate scientific knowledge through reading and self-learning of the principles of commerce, selling, marketing and distribution.

4- proper planning

The business process is a process based on planning for the coming periods in order to take advantage of some seasons to achieve the largest possible amount of profits from seasonal businesses.
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