TRADE

CONTENT

1. Definition of Trade
2. Types of Trade
3. Reasons for World Trade
4. Importance of International Trade

Definition of Trade

Trade simply means the exchange of commodities/services for money or for other services or commodities. Trade takes different forms but basically it develops when an individual or region or country produces a surplus of a product, and this product is in demand for other persons, regions or countries may in turn have products which will be in demand by the former individual, region, or country.

In the beginning trade merely involve the exchange of one commodity for another. This type of trade was known and is still called trade by barter. The implication is that only persons, regions, or countries that have some things they could exchange with others could exchange in trade. Trade grew and developed only when money was introduced as means of paying for goods.

Types of Trade

There are different types of trade, these include:

1. Inter-regional trade
2. Interstate trade and
3. International trade

For the purpose of this study, trade shall be grouped into inter regional and interstate trade, under national and state trade and place it side by side with international trade and finally zero into international trade

National Trade

This involves trade between one place and another within the country.