Commerce and business concepts
Business concepts
The world economy is governed by a series of defined concepts that allow us to identify its various areas, industries and commercial techniques that have allowed us to develop and improve administrative processes. Knowing the basic terms of the commercial activity, will open the doors to complex work environments where each task is important to take the wings of world economic development to each port, shopping center, airport, market or urban area where production is encouraged, distribution and consumption of goods and services needed by the masses. Economic relations between different countries should be our main topic of discussion. Currently, most of the big economies are interconnected among themselves through their financial and commercial relations. This indicates that most economies are open, not closed. At first glance, the internal economies of these countries have many political, economic and social reasons for not continuing to operate solely internally. In any case, there is a common reason for a country to initiate commercial relations with another, such as the goods that it lacks to alleviate social needs which are available at a high economic cost since they are produced by countries that assume a low cost of production, thus increasing the wealth of its citizens..
Merchandise exchange
"The beginning of the activities of exchange or barter of merchandise goes back to one of the first and most outstanding examples of long distance trade. We talked about the Silk Road between China and imperial Rome, which emerged around 100 B.C., when the Han dynasty made much of Central Asia a safe area for caravan transit. The six thousand kilometers of the route allowed the transport of Chinese silk, Roman wool, precious metals and many other valuable goods from intermediate ports in India and Arabia. From the east of the old world came luxury goods: spices, jewelry and textile products. In exchange for these goods, Western Europe exported raw materials and manufactured goods. The English sold wool garments, the Dutch salted herring, wool was produced in Spain, France exported salt; Southern Europe also stood out for its wines, its fruits and its oil. The Italian and German cities that covered these routes promoted and financed trade. However, during the Middle Ages, trade between Europe and Asia was scarce, because land transport was expensive and Europe's goods were not worth enough to export to the East."
"This is how this doctrine of economic thought known as Mercantilism, prevailed in Europe during the sixteenth, seventeenth and eighteenth centuries and promulgated that the State must exercise tight control over industry and commerce to increase the power of the nation by achieving that Exports outperform imports. Mercantilism was not really a formal and consistent doctrine, but a set of strong beliefs, among which the idea that it was preferable to export to third parties rather than import goods or trade within the country itself; the conviction that the wealth of a nation depends above all on the accumulation of gold and silver; and the assumption that the public intervention of the economy is justified if it is aimed at achieving the above objectives. The development of sailboats and efficient transport during the fifteenth and sixteenth centuries helped to a rapid expansion of trade. As the cost of transporting large cargoes over long distances decreased, grain began to be imported on a large scale from the Baltic to the Netherlands and other European countries. The new ocean routes between Europe and the East allowed to import from Asia, with lower costs, a greater volume of goods than could be transported by land. The discovery of America created a trade in new goods such as tobacco and wood.."
Comments