the divide global inequality from conquest to free markets

Different types of traders may specialize in trading different kinds of goods for example, the spice trade and grain trade have both historically been important in the development of a global, international economy. In such circumstances, trade at market prices between locations can benefit both locations. For example: different regions' sizes may encourage mass production. Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity – including production of natural resources scarce or limited elsewhere. In one modern view, trade exists due to specialization and the division of labour, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trades for other products and needs. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade. The invention of money (and letter of credit, paper money, and non-physical money) greatly simplified and promoted trade. As a result, buying can be separated from selling, or earning. Modern traders generally negotiate through a medium of exchange, such as money.

Economists refer to a system or network that allows trade as a market.Īn early form of trade, barter, saw the direct exchange of goods and services for other goods and services, i.e. Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money.

The divide global inequality from conquest to free markets