Knowra Trade (commerce) Trade (commerce) Trade is the buying, selling, or exchange of goods and services between people or organizations. It connects producers and buyers through markets, contracts, and exchange systems.
Supply and demand : The relationship between the quantity of a good offered for sale and the quantity buyers want at different prices. Their interaction helps determine which goods are traded and at what prices.
Division of labor : The organization of production into specialized tasks performed by different workers or groups. Specialization creates dependence on exchange for access to other goods.
International trade : The exchange of goods and services across national borders. It is the cross-border form of trade, shaped by national policies and currencies.
Autarky : An economic condition in which a country or community seeks to rely on its own production rather than trade. Autarky represents the clearest contrast to exchange across economic boundaries.
Market : A system in which buyers and sellers exchange goods, services, or assets. Markets organize many separate trades through shared prices and rules.
Comparative advantage : The ability to produce a good at a lower opportunity cost than another producer. It explains gains from trade even when one party is more productive in every activity.
Supply chain : The network of organizations and activities that moves a product from inputs to final use. Trade connects suppliers, manufacturers, distributors, and buyers across production stages.
Economic sanctions : Restrictions imposed to limit economic dealings with a target state, group, or person. Sanctions deliberately obstruct or condition trade for political purposes.
Contract : A legally enforceable agreement that creates obligations between parties. Trade agreements specify what each party must deliver or pay.
Property rights : Rules defining who may use, control, transfer, or benefit from resources. Clear ownership makes goods transferable through exchange.
Show all 21