Trade is a system of different economic relations between people

Trade is a system of different economic relations between people

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Trade is a system of different economic relations between people, arising in process of production, distribution, exchange and consumption, based on appointed principles, the main of which is freedom of trade. We can classify trade as a lot of markets: - Market of consumer goods, services, place to live, buildings - Market of means of production and forms of production activity - Market of money, capital issues - Market of work, workforce, working places - Market of information, innovations, intellectual product So there are a lot of advantages and benefits from trade. There is a system of competition between producers for the buyer in the “health” trade. A special kind of responsibility appears towards a buyer because the loss of the buyer is the loss of the money and sometimes complete
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Unformatted text preview: financial collapse of the company. It is known that the price is formed from haggle of buyer and consumer, interaction of supply and demand. This price appears in the result of ascertainment balance of opposite trends: the wants of one side to sell the goods more expensive and the other side to buy cheaper. We cant imagine trade without realization of principals of competition. Market mechanism doesnt work without competition. It is extremely necessary to avoid monopolization. Competition is the most efficient and valid means for stimulation of business activity, using the progress of scientifically technical progress, the growth of goods quality, satisfaction of constantly changing wants of buyers....
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This note was uploaded on 10/19/2008 for the course ECON 201 taught by Professor Shea during the Fall '08 term at Maryland.

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