Explaination of Barter, Trade, Commerce & Business - Essay Example

Exploitation of Barter, Trade, Business BY nonhuman Explanation of Barter, Trade, Commerce & Business Commerce & Barter : The act of trading goods and services between two or more parties without the use of money. Bartering benefits individuals, companies and countries that see a mutual benefit in exchanging goods and services rather than cash, and it enables those who are lacking hard currency to obtain goods and services. This term implies that instead of people money In exchange of any good, the person exchanges a retain good In order to get hold of the product that the other person might be offering.

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Before the Introduction of currencies, there used to be only the system that allowed people to make transactions with each other. Before there was money, there was barter. In barter, people exchange goods and service directly in exchange of goods and service offered by others. An individual possessing a material object of value, such as an animal, a measure of grain or farmed produce, could exchange that object for another object perceived to have equivalent value. In ancient history, all arms of goods were used In barter.

Items Include amber, beads, eggs, chicken, corn, rice, hoes, ivory, leather, pigs and even oxen. However, barter was a rather troublesome form of trade and ineffective way to exchange goods and services. The capacity to carry out ideal transactions is severely hampered and restricted since it is dependent on a coincidence of “wants” from both parties. The person who has a chicken to barter for some beads may not find a person with the beads who is looking for a chicken.

Trade : Trade, also called goods exchange economy, Is to transfer the wineries of goods from one person or entity to another by getting a product or service in exchange from the buyer The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries. Trade also mean purchase or sale. It apparel in economics as business deal or transaction . The buying and selling of goods and services across national borders Is known as international trade.

International trade Is the backbone of our modern, commercial world, as producers In various nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes The original form of trade was barter, the direct exchange of goods and services . Modern traders instead generally negotiate through a medium of exchange, such as money.

As a result, buying can be separated from selling, or earning. The Invention of money greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Countries trade with each other because trading typically makes a country better off. In international trade competition occurs at the firm level, while citizens of every country can benefit from free trade. Citizens enjoy a greater variety of goods and services, and generally at a lower cost.

Commerce : Exchange of goods or services for money or In kind, usually on a scale national boundaries. Commerce is the whole system of an economy that constitutes n environment for business. The system includes legal, economic, political, social, cultural and technological systems that are in operation in any country. Thus, commerce is a system or an environment that affects the business prospects of an economy or a nation-state. It can also be defined as a component of business which includes all activities, functions and institutions involved in transferring goods from producers to consumers.

Human wants are never ending. They can be classified as ‘Basic wants’ and ‘Secondary wants’. Commerce has made distribution and event of goods possible from one part of the world to the other. Today we can buy anything produced anywhere in the world. This has in turn enabled man to satisfy his innumerable wants and thereby promoting social welfare. When production increases, national income also increases. In a developed country, manufacturing industries and commerce together accounts for nearly 80% of total national income . Standard of living refers to quality of life enjoyed by the members of a society.

When man consumes more products his standard of living improves. To ensure a variety of goods he must be able to secure them first. Commerce helps us to get what we want at right time, right place and at right price and thus helps in improving our standard of living. Business : Business is the exchange of goods, services, or money for mutual benefit or profit . A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers . A financial resource is the per-condition for business operation.

Arrangement of capital or money is financing activity. In case of company, striation of dividend or dividend decision is also financing activity. A corporation is financed usually by equity capital-ordinary or common stock and preferred stock and debt capital. So share issue and debt servicing are major financing activity of a joint stock company type of firm. Business makes money with the help of money, which is the result of investment. Investment creates value. Direct investment creates value or economic value. Financial or portfolio investment indirectly helps investment.

Investing activity includes purchase of land, construction of building, recumbent and erection of machine, etc. Operating activities or operations include procurement of material for manufacturing of goods, or purchase, or procurement of finished goods and sale or marketing and distribution of those intermediate or final goods. The mane role of business to make money. But basically, it depends on the industry. What the corporation does and who it serves. If it’s a non-profit, its supposed to help people. Retailers basically sell things. Business arena really required to be socially conscious or there to really help the communities it serves.