A very important and powerful factor influencing the historical process in general and the life of society in particular - this is what trade is. The level of development of trade is one of the criteria for assessing the overall cultural level of people, and the higher it is, the higher the level of trade relations between them. This confirms the fact of either the absence of trade relations in general, or their presence at the exchange stage and the primitive “folding places” of the wild tribes that still exist.
What is trading now? This is a network of the most complicated commercial relations spanning the whole world, which have a fateful impact on the social and political life of countries and peoples.
External form of trade
Trading operations when the buyer and seller are in different countries, i.e. when a product as a result of sale moves across the borders of states, it is called foreign trade. This type of trade takes the form of import, export and transit. Commodity operations between two countries (when it is possible for goods to cross the border only between the two countries) are called import-export. Imported goods are called imported and the seller’s country is the importer for him, and his goods are exported.
When a third party intervenes in trade operations, which is neither the buyer nor the seller, it is called a transit country, and the transportation of goods through this country is called transit.
Internal form of trading
What is domestic trade, the definition itself says. With this form, the goods do not cross the borders of states. The seller transfers the goods to the buyer from hand to hand, i.e. they are located in one place or city (this is local trade). The buyer and seller can be in different cities, and then the goods are transported from one locality to another - this is intercity trade.
Wholesale and retail trade, as well as market trading, are types of the domestic market. The trading company is the primary link, the main function of which is the sale. When selling, there is a change in the form of value, from commodity to monetary.
Retail trade
The volume of sales determines two forms of trade: wholesale and retail. If, as a result of the sale, the product falls directly into the hands of the consumer for his own non-commercial use, then this activity is retail. It is possible by selling personally in a store, on the street, at a consumer’s house, or by phone, by mail, through a vending machine. Modern enterprises that sell retail goods have many types. These are self-service stores selling everyday goods at affordable prices.
There are shops with free selection of goods, but the final transaction is made with the participation of the seller. Prices in these stores are higher, because take into account the overhead costs of staff. At enterprises with limited services, customers are provided with qualified assistance and a number of other services. For example, buying goods on credit and the possibility of returning a new product, which for some reason did not fit the buyer.
Wealthy shoppers choose fashionable full-service stores. In such stores, goods of expensive brands are presented. In addition to a wide range of lending services, such enterprises provide clients with lounges, cafes, restaurants, provide free delivery and maintenance services for goods at home and other amenities.
Retail Prices and Types
Retail stores vary in price level. Fashionable trades at higher prices. Most offer mid-range products.
But what is trade and enterprises at reduced prices? This is not a markdown, not a sale with discounts, and not trade in low-quality goods. These are enterprises operating on the principle of high turnover. Warehouses are also involved in low-cost sales of large volumes. Shops such as showrooms sell catalogs and price lists. There are many non-store forms of retail trade through orders by mail, by phone, vending machines, delivery.
Product range
Trading enterprises on the proposed range of goods are called supermarkets or department stores and specialized stores. There are many other enterprises providing various types of retail services. This is from the services of banks, hotels, airlines, and ending with beauty salons and households. In the department store, goods of various assortments are presented in special departments.
A supermarket is a self-service trading company where goods of different groups can be presented as related products. In specialized stores , products of the same assortment groups are presented, but of wide saturation. These are furniture stores, household appliances, sportswear, flowers, etc. There may be highly specialized enterprises. In the clothing area, for example, this is a lingerie store. In supermarkets and enterprises of a specialized nature, wholesale and retail trade is possible.
Wholesale trade
If, as a result of a sale, a buyer purchases goods for resale or use in his profession, then this is a wholesale trade. The trading area and the volume of sales of wholesale enterprises are much larger than in retail.
Wholesalers more efficiently perform the functions of procurement, transportation, warehousing, batching, consulting and the provision of market information services, order formation, sales, financing, management.
There are several groups of wholesalers. The first is commercial firms, trading houses, bases, distributors who acquire ownership of their goods and work with a full or limited service cycle. The second group consists of brokers and agents. The main function of agents is to facilitate the conduct of trade, brokers - to reduce the seller to a potential buyer or vice versa, depending on who he was hired. They receive rewards for these services. The third group is the branches of wholesale manufacturers, allowing buyers and sellers to carry out trade transactions without intermediaries, without the participation of independent wholesalers.
Market trading
The market is a subject of economic activity and, regardless of the form of ownership of participants, is subject to laws and is guided by the rules of state trade. Trade on the market has always played an important role in providing the population with food and non-food products, as The direct manufacturer has free access to the market with his goods. An effective mechanism of commodity-money exchanges is regulated by supply and demand directly in the market. Wholesale and retail trade is allowed. In the modern market, the necessary conditions for trade are created. Constructing shopping facilities. They are equipped with commercial and technical equipment. The market is a convenient and shortest way of any type and volume of goods at an affordable price from producer to consumer.