economy

definition of trade

The word Commerce It is a term that we use regularly in our language and that has been associated with economic activity, especially associated with buying and selling.

Business that involves buying and selling products in a market and obtaining a profit from such action

Although it has several uses, the most widespread, undoubtedly, is the one that allows us to refer to the business that someone carries out when selling, buying or bartering products, merchandise, services, among others, at the request of a market and with the mission of achieving an economic benefit through them.

It should be noted that the indicated exchange involves the delivery of something in exchange for something else that has the same monetary value, or failing that, the payment of a certain price that the seller assigns to the thing in question.

Origins and history

The origin of the trade is really millenary, it dates back to the end of the stage Neolithic and agriculture would be the first matter of exchange between men, because when the activity was perfected and the harvest was abundant to the point of leaving a remnant, such surplus began to be exchanged for other values ​​by the producer.

Later, barter would be replaced by coin introduction.

The evolution of societies led to the search for more profitable alternatives and also as this advancement in society took place, the needs of its members grew and only trade could already satisfy them efficiently.

Commerce was undoubtedly the means of expansion and growth that many communities of yesteryear found, selling their products in places on the planet that were certainly far from their location.

Of course, this fact promoted the development of transport, because of course, those goods produced in one place had to be successfully delivered to another distant place, and thus, transport was improved in all its expressions, maritime, land, etc. among others, being able to connect remote areas and creating strictly commercial routes that generate a network of towns and cities that also made a living from this trade.

When monetary systems appear, commercial transactions will be facilitated.

Trade classes

There are different types of trade such as: wholesale trade (It is characterized because the buyer is not the final consumer but another merchant or company), retail commerce (in this case the buyer is the final consumer of the product), domestic trade (It is one that is established between individuals who belong to the same nation), foreign trade (It occurs between individuals or companies that reside in different countries).

Merchants and codes to be respected

The individual who is professionally engaged in the activity of commerce is popularly known as businessman.

Commercial codes recognize as merchants those people who have the legal power to contract and who carry out commercial acts on their own and who exercise their usual profession accordingly.

It is the person who buys and sells merchandise and also the one who manufactures them and then sells them to the largest or smallest.

The business of the merchant consists of acquiring products at a cost price and then he will add a margin for his profit and thus the sale price to the public will be configured, the aggregate will be his profit.

It should be noted that any merchant must adhere to what the commercial code stipulates.

Among them, the following stand out: legally register the activity that it develops in the corresponding registry and which is controlled by the various commercial chambers; specify the municipal authorizations that are provided for by law and in relation to the activity carried out; register with the corresponding tax collection entity to be able to pay the taxes established for the activity; keep the accounting books required by law up to date; deliver invoices to consumers for their purchases in order to record sales; and finally have an impeccable ethical behavior that is not unfair or dishonest with its competitors.

Establishment in which it is traded

On the other hand, it is also designated as commercial establishment, that is, to the physical place in which the aforementioned exchange takes place.

Also, the word designates the action of trading and the result thereof.

Meanwhile, trading will involve a negotiation, either by selling or buying products or related with the aim of achieving profits.

And also to set of commercial premises, as well as individuals who are dedicated to this area of ​​the economy, it is usually referred to in a general way as commerce. "The commerce sector has been hit hard by the recent economic measures taken by the government.”

And we must not ignore that in some situations and contexts this word is attributed a negative connotation because it refers to an illicit business, such as the sale of drugs or any other product or that is carried out clandestinely and without the proper authorization. And control.

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