Trade

Trade refers to the sale, transfer or exchange of goods. It is an activity by which buyers and sellers exchanges useful goods and services for mutual advantage. It is process of by which goods are taken from the source of production to the consumers. The persons engaged in trade from the source of production to the consumers. The acts as an intermediary between producers and consumers. Trade may be broadly classified into two parts :(a)home trade and(b)foreign trade. (a)Home trade: Home trade consist of buying and selling goods within the boundaries of a country. Payment for such sale are made in national currency directly or through the banks and the internal transportation system is utilized for movement of goods. It may be further sub-divided into wholesale and retail trade. (b)Foreign trade: Foreign trade involves purchase and sale of goods between different countries. For example, trade carried on between new york and Kathmandu. Two countries are involved in foreign trade. It may be further sub-divided into into import trade ,export trade and enter port trade.

Aids to Trade

There are various obstacles in the way of smooth running of trade. All the obstacles are overcome with the help of various agencies known as Aids to trade. Some of the aids to trade include following services: (a) Transport: Goods are produced at a few places but are required for use at several different places. It is the function of transport to carry goods from centers of production to centers of consumption. (b) communication: T he transmission of information from one place to another for various purposes is known as communication. Development of industry and trade is very much depends on means of communication. (c)Banking and Finance: Banks and finance institutions provide finance to business units. They are traders of money and credit. They provide capital for the business in the shape of loan and also help them in remitting money from one place to another. (d)Insurance: During the movement of goods from place to place or during storage, there are chances of goods being damaged or lost .It protects the traders from the fear of loss of goods. (e)Advertising and Publicity: The consumers may not be the aware of the availability of various goods in market. The producer will also like to increase his customer .The advertisement is used to educate customer and to publicize goods and services to promote their sales.