Trade

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Trade in its simplest form is the exchange of goods and services between peoples.

Trade is vital characteristic that separates the human species from the animal world. Human beings are dependent upon other human beings for their survival. Very few, if any, human beings fulfill their requirements for food, housing, clothing and other necessities without trading with other human beings. The father of classical economics, Adam Smith said, "No one ever saw two dogs exchange one bone for another."

Economists would extend the definition to include the act of importing and exporting, or trade between nations. Trade figures are calculated by the quantity or value of exports and/or imports.

See also