What is trade?

We explain what trade is and what it means in different disciplines. Commerce from the right, and commerce in economy.

  1. What is trade?

The concept of trade comes from the Latin commercĭum . S hile in the first instance can be defined as a negotiation of purchase, sale or exchange of goods and services , its meaning can vary according to the discipline from which it is treated.

  1. Commerce in law

Commercial law
Commercial Law is responsible for mediating possible conflicts between merchants.

From the right the above definition is accepted, only it is important to add that commercial acts must be for profit to be considered as such. By law it is determined that commercial acts are those where the purchase, sale or exchange of goods, which will then be resold or rented.

In addition, the law clarifies that commercial acts are those carried out in factories, through deposits, commissions and even transportation. That is why it is considered that from the legal point of view trade is a broader concept than in the economic field .

It is understood that it is a complex activity, which is why a specific branch of the right was created to legislate it and mediate before possible conflicts between merchants , this branch is called Commercial Law. The sources of law used in this branch of law are law and jurisprudence .

  1. Commerce in economy

Free trade
Different countries can exchange goods and services.

In the economy it is understood as the result between supply and demand of goods , as long as there is something that functions as a mediator, for example money and for profit. In this case, the production or consumption process is not contemplated , it is only interested in its exchange.

It is also important to note that under this definition bartering cannot be understood as a commercial act since there is no intermediary between the goods exchanged. That is why it is understood that the commercial activity itself arises from the division of labor, where production is not individual but group. Some of the means used throughout history have been spices, metals , nowadays money, checks, bank cards, etc. are used.

In turn, from this activity the merchants arise: they aim to make a profit from the sale of the goods. For this, this subject temporarily adds the goods to his estate , and then can offer them at the place of demand . This can increase or decrease the value of the goods according to their demand .

Prior to the emergence of liberal states , international trade practices were already beginning , which means that different countries can exchange goods and services , that is, import and export are possible.

Free trade is understood as the freedom that nations have to carry out commercial acts among themselves. The exchange of goods and assets is allowed without any taxes or obstacles in capital flows . Renowned economists, such as David Ricardo and Adam Smith raised economic theories explaining the importance of international and free trade.

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