The Economic Argument For Trade

1594 Words Oct 1st, 2015 7 Pages
What is the Economic Argument for Trade? What Factors can Enforce Fair Trade? What Factors also hinder it?
Trade refers to the activities of different parties that involve voluntary negotiations and exchange of goods and services between them . Trade has existed traditional with an evolution of the conventions of exchange through that different period. Initially, people exchanged goods to receive others or to gain a service from another person. The name for this strategy of business is barter trade, but it has faded considerably in the modern markets . The traditions have changed since the advent of money and currencies that now serve as the central medium for trade. Despite the evolution of the mediums of exchange, the principles of trade have remained the same where different parties offer some commodities in return for others. The theory opens up to the idea of the international trade that refers to the exchange of goods and services between the borders of two or more countries . The argument behind the establishment of trade is to ensure that the commodities get a way of distribution around the market so that different people can access them. The technique gives an opportunity to people to satisfy the demand that others have in different regions and gain other goods or services from them. It enables people to substitute the products they have in surplus for those they do not have.
Among the modern concepts in trade is Fair Trade between different regions and…
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