What is trading? Its types and types

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A very important and powerful factor influencing the historical process in general and the life of society in particular - that's what trade is. The level of development of trade is one of the criteria for assessing the general cultural level of people, and the higher it is, the higher the level of trade relations between them. This confirms the fact of either the absence of trade relations in general, or the presence of them at the stage of exchange and primitive "storage places" among the wild tribes that still exist.

What is trading now? This is a network of the most complex, world-wide commercial relations that have a decisive influence on the social and political life of countries and peoples.

External trading form

Trade operations when the buyer and seller are in different countries, i.e. when goods as a result of sale and purchase move across the borders of states, it is called foreign trade. This kind of trade has the forms of import, export and transit. Commodity transactions between two countries (when it is possible for goods to cross the border only between these two countries) are called import-export. importedthe goods are called imported and the seller's country is an importer for him, and his sold goods are exports.

When a third party that is neither a buyer nor a seller interferes in trade operations, it is called a transiter, and the transport of goods through this country is called a transit.

Internal trading form

What is internal trade, the very definition says. With this form, the goods do not cross the borders of states. The seller transfers the goods to the buyer from hand to hand, i.e. they are in the same place or city (this is a local trade). The buyer and seller may be in different cities, and then the goods are transported from one area to another - this is long-distance trade.

Wholesale and retail trade, as well as market trade, are types of the domestic market. The trading enterprise is the primary link, the main function of which is the sale. When selling, there is a change in the form of value, from commodity to monetary.

Retail trade

Sales volume defines two forms of trade: wholesale and retail. If, as a result of the sale and purchase, the goods fall directly into the hands of the consumer for his own non-commercial use, then this activity is retail. It is possible by selling personally in a store, on the street, at the consumer's home or by phone, by mail, through a vending machine. Modern enterprises selling retail goods have many types. These include self-service stores selling everyday goods at affordable prices.

There are shops with free selection of goods, but the final transaction is made with the participation of the seller. Prices in such stores are higher, because. take into account the overhead costs of paying staff. Limited service businesses provide customers with expert assistance and a range of other services. For example, buying goods on credit and the possibility of returning a new product that for some reason did not suit the buyer.

We althy shoppers choose luxury stores with full customer service. In such stores, goods of expensive brands are presented. In addition to a wide range of lending services, such enterprises provide customers with rest rooms, cafes, restaurants, provide free delivery and maintenance services for goods at home, and other amenities.

Prices and retail types

Retail stores vary in price levels. The fashionable ones trade at higher prices. Most offer mid-priced items.

But what is trade and enterprises at discount prices? This is not a markdown, not a sale with discounts, and not a trade in a low-quality product. These are enterprises operating on the principle of high turnover. Stores-warehouses are also engaged in the sale at low prices of large volumes. Shops such as showrooms sell catalogs and price lists. There are many forms of non-store retailing through mail-order, telephone, vending machines, delivery.

Product range

Enterprises of trade inThe range of goods offered is called a supermarket or department stores and speci alty stores. There are many other businesses that provide various kinds of retail services. This is from the services of banks, hotels, airlines and ending with beauty salons and households. In the department store, goods of different assortments are presented in special departments.

Supermarket is a self-service trade enterprise, where goods of different groups can be presented as related products. In specialized stores, goods of the same type of assortment groups are presented, but with a wide saturation. These are furniture stores, household appliances, sportswear, flowers, etc. There may be highly specialized enterprises. In the clothing area, for example, this is a lingerie store. Wholesale and retail trade is possible in supermarkets and specialized enterprises.

Wholesale trade

If, as a result of the purchase and sale, the buyer acquires goods for resale or use in his profession, then we are talking about wholesale trade. The sales area and sales volume of wholesale enterprises is much larger than that of retail enterprises.

Wholesalers are more efficient in purchasing, transporting, warehousing, batching, consulting and providing market information services, ordering, marketing, financing, management.

There are several groups of wholesalers. The first is commercial firms, trading houses, bases, distributors that acquire ownership of their goods andwork with a full or limited service cycle. The second group consists of brokers and agents. The main function of agents is to facilitate trade, brokers - to bring the seller to the potential buyer or vice versa, depending on who he was hired to work. They are rewarded for these services. The third group is wholesaler branches that allow buyers and sellers to carry out trade transactions without intermediaries, without the participation of independent wholesalers.

Market trading

The market is a subject of economic activity and, regardless of the form of ownership of the participants, is subject to the laws and is guided by the rules on trade of the state. Trade in the market has always played an important role in providing the population with food and non-food products, because. the direct producer has free access to the market with his product. An effective mechanism of commodity-money exchanges is regulated by supply and demand directly on the market. Wholesale and retail trade is allowed. In the modern market, the necessary conditions for trade are created. Trade facilities are being built. They are equipped with commercial and technical equipment. The market is a convenient and shortest way of any type and volume of goods at an affordable price from the manufacturer to the consumer.