What is the basic definition of term Trade?

The term trade refers to buying and selling of goods and services for money or money's worth. The term is often synonymous with ‘commerce.’ It may also refer to a particular industry as in the building, tourist or fur trades. Trade is essential for satisfaction of human wants, it is conducted not only for the sake of earning profit; it also provides service to the consumers. If we speak about international trade, then it allows businesses to compete in the global market and to employ competitive pricing for their products and services. As more products become available to the market, consumers meet their needs and satisfy their wants, thus increasing customer satisfaction.Moreover, the exchange of goods and services on a global level has a significant impact on a national economy as exports grow, thus increasing the balance of international payments and significantly contributing to a country’s gross domestic product (GDP).

The term trade is a basic economic concept involving the buying and selling of goods and services, with compesation paid by a buyer to a seller, or the exchange of goods or services between two parties. Trade can take place within an economy between producers and consumers. International trade allows countries to expand markets for goods and services that otherwise may not have been available to it. As a result of international trade, the market contains greater competition and therefore, more competitive prices, which brings a cheaper product home to the consumer.