Trade exchange

Commerce

Commercial exchange is the action by which one person delivers a good, or service, to another, in exchange for a consideration.

Commercial exchange is a very frequent action in society. It is the action by which two economic agents exchange goods or services, in exchange for a consideration. Said consideration can be monetary (money) or in kind (good or service).

The set of exchanges is called trade, since it integrates the entire exchange relationship that occurs on the planet.

Globalization has caused commercial exchanges in the world to be carried out throughout the world.

Trade is one of the greatest sources of wealth on the planet. Formed, yes, by all the commercial exchanges that take place on the planet.

Types of commercial exchange

Depending on who the trades are made with, the trade can be of one kind or another. That is, there are various types of commercial exchange, based on their classification of the economic agents that participate in said exchange.

Thus, the types of exchange that exist are:

  • Foreign trade: That which is carried out with third countries, abroad, where there is no common residence.
  • Internal trade: That which is carried out between economic agents residing in the same territory.

In turn, foreign trade should be added to the two types of exchange that exist, which occur very frequently in the economy.

These exchanges are:

  • Exports: Those goods and services that are sent abroad, to be traded in other countries. In other words, what is sold to other countries to be consumed or sold in other countries.
  • Imports: Those goods and services that are brought, imported, from abroad, to be consumed and commercialized in the territory of origin. In other words, the goods that are bought from third countries to bring to a certain territory.

On the other hand, and depending on the route, said exchange can be classified into the different types:

  • Land exchange: That which is carried out by land.
  • maritime exchange: Exchanges that occur by sea.
  • Electronic commerce: That which is traded on the internet.
  • Air exchange: That which is transported in airplanes, by air.
  • Fluvial exchange: That which is transported by rivers and derivatives.

Finally, this exchange can be classified into two more types, depending on who is the buyer and who is the seller. Depending on whether they try to trade with the final product or not, or if said product is distributed in stores, we can classify the exchange as follows:

  • Wholesale exchange: When it occurs between wholesalers, so that its buyer is not the final consumer. It is also known as "wholesale".
  • Retail exchange: The exchange that occurs in which the buyer is its final consumer. It is also known as "retail".

International trade: trade between countries

With the advancement of transport, commercial exchanges have become an increasingly frequent action on a global scale. We are talking about a certain good or service being in Spain today, while the next day it is already in Colombia. This is a phenomenon caused by globalization and its effects on the economy. That is, thanks to globalization, there is a more intense flow of trade, while it is possible to trade with anywhere in the world.

International trade is quite an important issue, since it represents a large percentage of gross domestic product (GDP), in the same way that it causes the flow of goods to be activated. This produces wealth for countries, in the same way that wealth is created in the world.Globalization and international trade present a high level of activity and their role in the world of commerce has become fundamental and a priority.

Thus, international trade has more and more free trade zones on the planet. Zones that try to promote trade between countries.

Difference between international trade and foreign trade

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