Trade definition
Trade definition
1. Trade
The term trade is applied to businesses through which goods and services are bought and sold, and trade is one of the branches of business. Trade is the process of distributing the goods produced, and under the term, trade falls systems that apply locally and internationally, including legal, political, social, economic, cultural, and technological systems, and the concept of trade includes all financial operations such as buying and selling a specific product, and often the product is traded on an international scale between Different countries,[1] trade is affected in terms of transporting goods from one place to another by some advantages that ensure its continuity and expansion, Suchbeing a: geographical, technological, and economic advantages, and some peoples were distinguished from others by trade because of these advantages, such as the Egyptians, the Sumerians, the inhabitants of Mesopotamia, the Arabs, and others.[2]
2 .The emergence of trade
Trade is closely related to civilization, as trade appeared with the civilization of man and the expansion of his needs and not beingbe limited to food, drink, then ousingusingblack shavings. The exchange of goods between it and other countries, and trade also arose due to other circumstances and factors that govern the country and make it difficult for it to produce everything it needs, and among these factors: lack of coal, lack of wood, lack of raw materials, and climate.[3] Trade depends on hands.With thee workforce and the skills that it masters, it is possible that the raw materials and the skill of the makers are available in a country, a country may lacklacklack lackshavings these two while such elements woolitsproducts suchlements whileIwoolt has the swhile navigation to be a carrier of goods, and the country may combine all elements, as the shores of the Mediterranean Sea were the main center of trade in the world. [3] Goods were transported to and from Egypt through the Mediterranean Sea, where some goods arrived, such as Silver, ivory, wol, and spices from the Arabian Peninsula and the Far East to Egypt, and Egypt exported large quantities of agricultural crops that it was famous for, such as: wheat, barley, cotton, and flax, in addition to pottery, and it was the pioneers of trade in the Arab world And the Greeks, and after the establishment of the port of Alexandria, this port became the capital of world trade, and Egypt attracted through it a numbeseveralr of several greek merchants and settled there.[3]
3. The main elements of trade
Any business process needs integrated main elements that make it a successful process, which are as follows:
Preparation: This is done through a comprehensive study that includes knowing the success rate of trade in the market, and exploiting its chances of success, as this study is based on observation, research, and testing ideas. related to trade, establishing a financial portfolio, and business planning.
Performance: That is, the application of the study that was prepared in the preparation stage on the ground, by starting the commercial activity, taking into account giving the trade its appropriate size in the market, predicting potential risks and the ability to avoid them, and the ability to adapt to the market and its fluctuations.
Review: Any study of financial transactions, whether individual or comprehensive, at the market level. This step is important for assessing the situation and correcting ideas about the market based on previous successes and mistakes.
Reorganization: by applying the new ideas of trade that were reached through the review, and avoiding the mistakes that existed in the past; For the new performance to be better.
4. Types of trade
internal trade
The concept of internal trade expresses commercial operations in which commodities are traded among traders in the local market within a specific geographical area, and internal trade is divided into two types, as follows: [5] The wholesaler collects large quantities of the goods from their manufacturers, then sells them to retailers, who in turn sell them to consumers, as the wholesaler forms the link between producers and retailers. Retail Trade: The quantity of goods traded in this type of trade is limited and in smaller quantities than the goods of wholesale trade, where the retailer buys quantities that suit the market’s needs and sells them to consumers, as the retailer forms the link between wholesalers and consumers. foreign trade
foreign trade
The concept of foreign trade expresses commercial operations in which goods are traded between two different countries, and foreign trade is divided into three types, which are as follows:
Export trade: This trade refers to the activity by which goods are sold from within a country to outside its borders. Import Trade: This trade refers to the commercial activity whereby goods are purchased from another country and brought to the home country.
Transit trade: This trade refers to the commercial activity through which the goods are transported through an intermediary trader from the country of origin to another country; To be processed and then transported to the importing country.
E-Commerce
E-commerce refers to commercial activities that take place via the Internet through the exchange of goods for sale and purchase,[1] and it is a digital version of shopping, as e-commerce provides everything that consumers need, such as books, flight reservations, and various financial services, and trade is distinguished electronic that it facilitates the shopping process for the buyer; Where shopping takes place at any time, and it is distinguished by the fact that it expands the circle of online shopping to include a larger number of stores and goods.[6] One of the undesirable things in e-commerce is that there is not enough customer service that helps the customer obtain all the features of the product, and among the things which the customer does not prefer to wait for the goods to be shipped, and also the inability to inspect the commodity before purchasing it, Thus, the commodity may reach the customer, contrary to his expectations. [6]
E-commerce is divided into several types as follows:
From companies to merchantmerchantstakefrom (B2B): The process of selling goods in this type of e-commerce takes place from the company’s website on the Internet to an intermediary person often Usually a wholesaler, who in turn sells these goods to consumers.
Business-to-consumer (B2C): Dealing in this type of e-commerce is direct between the company through its website and consumers without the presence of an intermediary, by browsing the website, selecting its goods, and ordering it directly through the company's website.
Consumer-to-consumer (C2C): Buying and selling in this type of e-commerce takes place between one consumer and another, by publishing commodity information by a consumer on a website and purchasing it by another consumer.
From consumer to business (C2B): In this type of e-commerce, the consumer provides services to companies in exchange for a sum of money that he estimates based on the type of service.
From companies to government (B2G): Dealing in this type of e-commerce is between companies and the government, as information is exchanged between companies and the government through government-approved websites that give companies the ability to submit requests to the government.
From government to companies (G2B): Dealing in this type of e-commerce is between the government and businessmen, but government-approved websites are dedicated to auctions, bids, and job applications.
Government to Citizen (G2C): This type of e-commerce is between the government and the citizen.Savecitizensthee aim of saving the citizen's time to obtain government services through government websites.
5. The importance of trade
Trade enjoys great importance in different societies, and among the benefits of trade are the following: Trade meets the basic needs of people, by transporting goods from anywhere in the world to anywhere else.
Trade helps to improve the standard of living of individuals, as it provides commodities of all kinds and makes them accessible, as it provides them at the time, place, and price that suits the individual.
Trade links between the consumer and the producer, as the consumer are informed of the latest products and goods through advertisements on the goods, and the producer obtains consumer reactions through opinion polls that are conducted on the process of marketing the goods.
Trade helps reduce unemployment. The more trade develops, the more commercial companies need employees. Which increases job opportunities.
Trade contributes to increasing the national income of the country.
Which makes it richer.
Trade helps in enhancing production.[8]
Trade develops the industrial sector.[8]
Trade contributes to the development and development of countries.[8]
Trade brings together people of different cultures and languages.[8]
Trade helps people move around in different places.[8] ]
Trade brings technology closer to people.[8]
Trade helps convert raw materials into a ready-to-use final product.[8]
Trade helps small capitalists start their businesses.[8]
Trade increases the well-being of societies by providing luxury goods of high quality.
Trade encourages each country to be distinguibeingtheir roductsSuch beingthe that it can produce at the lowest cost, most effective and efficienmostt.[9]
Trade encourages each country to limit the types of commodities it produces, which leads to an increase in its production capacity for these commodities.[9]
Trade contributes to creating competition between markets; Which leads to a decrease in global prices of commodities, and thus an increase in the purchasing power of the consumer. [9]
Trade eliminates the monopoly of the local markets for commodities; By creating competition with foreign companies.[9]
Trade improves the quality of goods, and helps the emergence of sophisticated, innovative, and manufactured goods with the best technologies.
6. Disadvantages of trade
7. Activities related to trade
Trade is divided into several branches in the form of activities related to it, and these activities are summarized in the following: [11] Commodity exchange: Trade is a chain that starts from the producer and ends with the consumer, where the producer searches for people who are interested in the goods and want to buy them at a reasonable price, and because of the difficulty of direct communication sometimes between the producer and the final consumer; Wholesalers and retailers were found as intermediaries to complete the trade.
Transportation: Transportation is the appropriate means to remove the barrier of place, as the distance between production centers and consumption centers is considered an obstacle to the arrival of goods from the producer to the consumer. Therefore, various means of transportation were found to remove this obstacle, to shorten distances, and these means: roads, railways, maritime transport, and airlines.
Storage: Storage is the appropriate means to remove the time barrier that arises between the time of production and the time of consumption, as some goods are produced in specific seasons to be consumed at any time of the year, such as sugar and wheat, and some goods are produced throughout the year to be consumed in seasons specific, such as wooleninsuring ensuring ,clothes, cooling supplies; Therefore, goods are stored in warehouses until they are ordered.
Insurance: Insurance is the appropriate means to remove the obstacle of threat and risk, as goods are exposed to various forms of threat, such as: theft, burning, and climatic conditions, and by insuringensuringmarketingaregoods through various insurance policies, this obstacle is eliminated.
Banking services: Banking services are the appropriate means to remove the financing barrier and facilitate exchange.Where the process of exchanging goods is subject to several factors, namely: the time factor, the time factor, and the price, as banks provide loan services and overdrafts to eliminate the financing barrier, and money is also transferred from one person to another using banking services, and banks play a vital role in making and receiving payments in international trade.
Advertising and marketing: Advertising and mareketing is the appropriate means to remove the barrier of knowledge, as ignorance of the existence of certain commodities and the way they are used limits their exchange. Therefore, advertising campaigns are launched to introduce the products and their uses. This is to bring customers to the showrooms, and thus the exchange process is enhanced.