SOCIAL SCIENCES 3 rd eso WHAT IS TRADE? Trade is the buying and selling of goods to meet the needs of a population. The trading of goods is an ancient activity that established links between different cultures a long time ago. Trade was first carried out through a system of bartering (exchanging certain goods for others). Once money appeared, goods were given a more exact value, trading opportunities grew and people started to do business with communities that lived further and further away. TYPES OF TRADE Trade can take place within the same country or between different countries: Domestic trade takes place within the same country. There are two types: o Wholesale. Wholesalers buy large quantities of goods and sell them to other companies. Individual consumers do not have access to the markets where wholesalers buy their goods.
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Transcript
SOCIAL SCIENCES3rd eso
WHAT IS TRADE?
Trade is the buying and selling of goods to meet the needs of a population. The
trading of goods is an ancient activity that established links between different
cultures a long time ago.
Trade was first carried out through a system of bartering (exchanging certain
goods for others). Once money appeared, goods were given a more exact value,
trading opportunities grew and people started to do business with communities
that lived further and further away.
TYPES OF TRADE
Trade can take place within the same country or between different countries:
Domestic trade takes place within the same country. There are two types:
o Wholesale. Wholesalers buy large quantities of goods and sell them
to other companies. Individual consumers do not have access to the
markets where wholesalers buy their goods.
o Retail. Retail outlets sell small quantities of goods directly to
consumers. Examples include supermarkets, shoe shops, bakeries
and the shops in shopping centres.
International trade takes place between countries. It includes the sale of
products made domestically (exports) and the purchase of products made
in a different country (imports). The balance of trade is the difference
between the monetary value of the exports.
THE ELEMENTS OF TRADE
To function effectively, trade requires:
Sellers: people or companies that sell goods
Buyers: people or companies that buy goods from the sellers
Goods: the products that are exchanged. Today goods have a monetary
value
A market: the place where the buying and selling takes place. They can be
tangible markets that sell products (shops or supermarkets), or abstract
(markets) when the actual product is not there (stock markets or the
international oil market).
ACTIVITIES
1) After reading the text, explain the processes involved in buying and selling a car:
4) How can governments protect the interests of smaller business? How has the economic crisis that started in 2008 affected to medium-sized businesses? Discuss.