Difference between revisions of "Trade"
(New page: In its simplest form, <b>trade</b> is the exchange of goods and services between peoples. Category:Economics) |
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| − | + | '''Trade''' in its simplest form is the exchange of [[goods]] and [[services]] between peoples. | |
| + | Trade is a vital characteristic that separates the [[human]] species from the [[animal]] world. [[Human being]]s are dependent on each other for their survival. Very few, if any, human beings fulfill their requirements for [[food]], housing, clothing and other necessities without trading with other human beings.<ref>Even the act of paying [[tax]]es by [[survivalist]]s who live "off the power grid", be it land or income taxes, is an act of trade between the landowner or homeowner and the [[government]], an exchange of [[money]] for defense, police protection, maintenance of roads, etc.</ref> The father of classical economics, [[Adam Smith]] said, "No one ever saw two dogs exchange one bone for another." | ||
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| + | [[Economists]] would extend the definition to include the aggregate amount of trade between [[nation]]s via [[import]]s and [[export]]s, which may result in an imbalance, with one nation having a [[trade surplus]] and another having a [[trade deficit]]. Nations with large trade deficits are known as [[debtor nation]]s. | ||
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| + | ==References== | ||
| + | {{reflist}} | ||
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| + | == See also == | ||
| + | *[[Capital]] | ||
| + | *[[Capitalism]] | ||
| + | *[[Free trade]] | ||
| + | *[[Protectionism]] | ||
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| + | [[Category:Trade]] | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 16:43, June 23, 2024
Trade in its simplest form is the exchange of goods and services between peoples.
Trade is a vital characteristic that separates the human species from the animal world. Human beings are dependent on each other for their survival. Very few, if any, human beings fulfill their requirements for food, housing, clothing and other necessities without trading with other human beings.[1] The father of classical economics, Adam Smith said, "No one ever saw two dogs exchange one bone for another."
Economists would extend the definition to include the aggregate amount of trade between nations via imports and exports, which may result in an imbalance, with one nation having a trade surplus and another having a trade deficit. Nations with large trade deficits are known as debtor nations.
References
- â Even the act of paying taxes by survivalists who live "off the power grid", be it land or income taxes, is an act of trade between the landowner or homeowner and the government, an exchange of money for defense, police protection, maintenance of roads, etc.