Finance

Definition of trade, its elements and types

Trading : The term of trade is launched on business through which to sell and purchase of goods and services. Trade in the process of distributing goods produced, and is under the term trade systems applied locally and internationally, including legal, political, social, economic, cultural, and technological systems, and includes the concept of trade all financial operations from the sale and purchase of a particular product, and often produced an international product between Different countries.

Trade is affected by the transfer of goods from one place to another with some of the advantages and expansion, such as geographical, technological, and economic advantages, and some peoples distinguished from other trade because of these features, such as those who are, and Somers, and the population of countries between the two and others.

Trade trade: Trade is closely related to civilization. Trade has emerged with the human being attended and expanding its needs and not limited to food, drink, and dwelling and trade is a means of multiple means used by peoples to meet their different needs. The country can not provide all its domestic internal market needs, so it needs Exchange of goods between him and other countries, and trade also arose due to circumstances and other factors governing the country and makes it challenging to produce everything you need, and from these factors: coal deficiency, lack of wood, lack of raw materials, and climate.

Trade is based on human resources and skills, which is possible to availability and skill of manufacturers in a country. It is possible to miss a country for these two elements, while navigation skills are available to be a carrier of goods, and the country brings together the country’s medium beaches, The leading trade in the world.

The goods were transported from Egypt and to it by the Mediterranean, where some goods were, such as silver, ivory, wool, spices from the Arabian Peninsula and the Far East to Egypt. Egypt was issued large amounts of crops that were famous for them: Wheat, barley, cotton, linen, plus pottery, trade leaders in the Arab and Greeks world, and after the establishment of the port of Alexandria, this port is the capital of global trade, and Egypt has been depleted by several Greek merchants and settled.

Main trade elements:

Any commercial process needs integrated vital elements that make them successful, as follows:

Setup: Through a comprehensive study involving knowledge of market trade success rate and exploit their success opportunities, this study is adopted on observation, research, testing of trade ideas, establishing the financial portfolio, and commercial planning. Performance: Any study prepared in the preparation stage on the ground, by starting the commercial activity, taking into account its fair trade in the market, predicting potential risks and ability to avoid them, and the ability to adapt and fluctuate. Audit: Any financial trading study, whether individual or comprehensive trading at the market level. This step is essential to assess the situation and correct ideas on the market based on triumphant successes and errors. Restructuring: By applying new ideas for trade reached through the review and the mistakes that existed in the past; To be the best performance better.

Trade types: Internal trade

The concept of internal trade is expressed in trade operations in which commodities are traded between traders in the local market within a specific geographical area. Internal trade is divided into two types, such as:

Wholesale: The quantity of cargo stores in this type is excellent, where the wholesaler buys large amounts of goods from its manufacturers, then sells them for retailers who in turn sell to consumers, where the wholesaler is the link between producers and retailers. Retail Trade: The amount of cargo stores in this type of trade is limited and more minor than wholesale goods, where retailers buy quantities of market need and sells to consumers, where the retailer is the link between wholesalers and consumers.

Foreign Trade

The concept of foreign trade is expressed in commercial operations in which commodities are traded between two different countries, and foreign trade is divided into three types, as follows:

Export Trade: This trade refers to the activity that the goods are sold from within a country outside its borders. Import trade: This trade refers to commercial activity purchased by goods from another country and brought to the homeland. Transit trade: This trade refers to the commercial activity through which an intermediary transfers the goods from the country of origin to another country; To be processed and then moved to the importing country.

E-Commerce : E-commerce indicates commercial activities through online selling and purchase, a digital version of shopping, providing e-commerce. Shopping process on the buyer; They are shopping at any time, expanding the online shopping circle to include a more significant number of shops and goods. [Unwanted e-commerce is that there is not enough customer service that helps customer get all product features, and it is not The customer is preferred to wait for the goods until they are shipped, and also the inability to preview the item before purchasing so that the item may reach the customer, unlike its expectations.

E-commerce is set to several types as follows: From companies to Merchant (B2B): Goods in this type of e-commerce from the website online to a broker is often a wholesaler, which sells these goods to consumers. From companies to consumers (B2C): Dealing in this type of e-commerce is directly between the company through its website and consumers without an intermediary party, by browsing the consumer website, choosing its items, and asked directly across the company’s website. From consumer to consumer (C2C): Selling and purchasing in this type of e-commerce between consumer and another, through the publication of the consumer item information on one of the websites and purchased by another consumer. From consumer to companies (C2B): In this type of e-commerce, consumers provide companies with an amount appreciated based on the type of service. From companies to government (B2G): Dealing in this type of e-commerce between companies and government, where information between companies and government is exchanged through government-certified locations, companies give companies the ability to apply for government. From the government to companies (G2B): Dealing in this type of e-commerce between the government and businessmen, only government-based websites are dedicated to auctions, tenders, and recruitment requests. From the government to the citizen (G2C): Dealing in this type of e-commerce between the government and the citizen; To provide the citizen’s time to obtain government services through government websites.

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