Trade

Trade is commerce, or transaction, or voluntary exchange of goods, services, or both. Trade exists between regions because different regions have a comparative advantage in the production of a commodity.  Moreover, trade at market prices between locations benefits both locations.

International trade is the exchange of goods and services across national borders.  Standards for trade may be voluntarily adhered to by importing firms.  The standards can also be enforced by governments through a combination of employment and commercial law.  Non-governmental organizations serve as independent monitors of compliance with fair trade labeling requirements, and thus play a role in promoting fair trade standards.


Inside Trade