geo lec 28-29 - Q. What is trade? Discuss the different...

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Q. What is trade? Discuss the different components of trade. Ans: Economic men are always trying to improve their condition. So they are involved in many secondary and tertiary activities. Among them trade is one of the tertiary economic activities, in which homo sapiens are involved in exchanging goods between two or more than two parties involving monetary or non-monetary transactions. Trading can occur in two ways – 1. Informal trade and 2. Formal trade Informal trade: Informal trade is also known as barter trade. Exchanging goods without the transaction of money is known as barter system. People at first started trade with this. They used to exchange necessary goods between each other. For example, farmers exchange rice for fish with the fishermen. So in this trade two parties are involved in non- monetary transaction. These kinds of trades were found in the time when there was no currency. Formal trade:
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This note was uploaded on 04/23/2011 for the course GEO 101 taught by Professor Fkabir during the Spring '11 term at BRAC University.

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geo lec 28-29 - Q. What is trade? Discuss the different...

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