The process of exchanging goods for money and other benefits accompanies a person for almost his entire history. Despite this antiquity, the forms and functions of trade have remained unchanged for a long time, although technological progress has contributed to the modernization of this process.
The concept
The movement of goods from producer to consumer cannot do without an intermediary, which is trade, the types and functions of which are formed as a result of the formation of markets and the division of labor. In its most general form, this concept can be defined as the sphere of human activity that ensures commodity circulation and movement from the sphere of production to the sphere of consumption.
For business, trade is one of the most profitable ways to make a profit by satisfying the needs of customers with the help of goods. This concept also refers to the sphere of activity that provides economic growth due to growing demand and purchasing power of the population.
How it all began
Trade is one of the oldest human activities. It arose as far back as the Stone Age, when a person had surpluses of goods and objects for exchange. Then there was the simplest form of trading - barter. Later, various equivalents of money appear: pearls, stones, animal skins. Then trade takes on traditional forms. The first entrepreneurs appeared in the Ancient East in 3 thousand BC, when external trade relations between states were established.
Trade as field of activity is formed together with the division of labor, people are differentiated by occupation, a class of merchants and merchants is formed. The objects of trade were a variety of goods: from slaves to luxury goods. Professional sellers appear in the 2nd millennium BC.
It is trade that becomes the goal of great geographical discoveries and travels. Thanks to it, people accumulate wealth, there is a social evolution, which brought the world to a modern state.
Trade, types, functions, the importance of which continue to be of interest to researchers and economists, is now taking on more and more advanced forms. She keeps up with the technologies and modern requirements of the market and the consumer, while continuing to influence the world order. Today, it is becoming a special social institution with many diverse functions.
Economic and social functions
From an economic point of view, trade is the main link between the producer and the consumer, which is its main function. In addition, it provides the movement of money and economic growth, so the attention of economists to it is so great. Also, trade performs the following social functions:
- Organizational and distribution. It promotes the concentration and distribution of resources among various social groups.
- Integrative. Trade unites people in interest groups.
- Communicative. It acts as a means of communication between the manufacturer and the buyer.
The importance of trade for modern society is difficult to overestimate. It is she who is one of the conditions for the stability of the existence of civilization. Trade stimulates the production of goods, maintains a balance between supply and demand, provides the implementation of marketing functions. Not in vain during the crisis, all the experts' attention is focused on indicators for different types of trade.
Main forms
Today, trade is a diverse form of exchanging goods for money. Specialists distinguish external (or international) and internal.Foreign trade, in turn, is presented in the form of import, export and transit of goods. To regulate the production of goods in the country international trade extremely important, it allows you to fill the shortage of missing products on the market. Domestic trade provides the movement of goods within the country, is an important part of the gross domestic product.
Forms such as state, cooperative and private trade are also highlighted. Types of trade vary by subject. The first is usually associated with natural monopolies The main product here is raw materials, products of the military-industrial complex. The second and third forms are associated with the organization of the exchange of goods and money between individuals, the object of such trade can be a variety of goods.
Such a different trade: classification and typology
The complexity of the described process allows us to distinguish its various types and types. Economic activity man is extremely diverse, but many areas are united by the end point - trade. Types of trade are diverse, researchers are trying to build classifications on various grounds. Traditionally, researchers distinguish between wholesale and retail trade, as well as market and stock trading. The latter refers to the type of organized trade. In addition, according to the method of movement of goods, mobile and stationary are distinguished.
Today, no sphere of production or services is complete without the use of modern technologies, and trade is no exception. The types and forms of trade are increasingly associated with electronic commerce, online and offline offers appear.
You can find a typology by the degree of involvement of the seller’s figure, in which trade without it (catalogs, online stores) with its minimal participation (hypermarkets, supermarkets) is distinguished, as well as counter trading, in which the seller’s figure becomes key.
Retail
Retail is the sale of goods individually, usually to the end user. This is the oldest and most developed form of the phenomenon under consideration. By the type of transfer of goods, it is divided into stationary (or store) trade and mobile. The first is most often found and is represented by the widest network of stores of various sizes and types. The second is when the seller is looking for a buyer, moving his goods around the area (various fairs, car shops, etc.).
According to the representation of types of goods, retail trade is divided into mixed and specialized. The first is when goods of different types are sold at one point: food, clothing, household appliances. Specialization can be different - from a group of products, for example, only food, to a narrower, for example, only caramel.
Wholesale
This type of trade is associated with the procurement of large quantities of goods, most often with a view to resale. By functional differences, the wholesale is divided into procurement, distribution and production activities. The first is related to the purchase of raw materials for the subsequent production of any product. The second provides retail outlets with products. It is associated with the movement of goods from the manufacturer to the retailer through an intermediary - a wholesaler. The third is the purchase of tools, equipment, semi-finished products, bringing them to the final product and sale.
Other species
A separate type can be called parcel trading, which is carried out remotely, according to catalogs. Today, its most popular variety are online stores. They can trade in retail or in bulk, the main advantages are accessibility (today you can order goods from anywhere in the world) and low office maintenance costs.
Apart stands such a form of wholesale trade as commodity exchanges. They provide the movement of bulk lots, most often raw materials, between the manufacturer and the buyer.
