What is Economy and Trade? Basic Concepts

I know many of you are well are of the words economy and trade. But very few know the real basic concept of economy and trade. What relationship do economy and trade have and how they are connected with each other. In this article, you will learn the basic concepts of Economy and Trade. So let’s find out below the real, basic, and easy concepts of economy and trade.

Basic Concepts of Economy and Trade

The economy is (the use of all human thoughts and actions) that man adopts to earn. Business is a process of making a profit. The word business (commerce) means trade, the word trade, and the word commerce is common in the American language.

The process of doing business and trading business, that is, buying goods from the consumer’s business to another person on the basis of profit from the point of view of trade and is called sale (trade). Business activities should be carried out in such a way that the consumer is brought to the market based on the product and profit (marketing). Market).

The name of the organized economic process is industry. Agriculture is generally used in the sense of agriculture but in economic terms agriculture is related to agriculture, problems of agricultural lands, treatment of plant diseases, animal husbandry, fishing, and Forests also fall into the category of agriculture.

A retailer is a merchant who buys a small number of products and delivers them directly to the consumer. A consumer is a person who not only buys goods but also uses them. Wholesalers are traders who buy large quantities of products and promote retailers.

Brokers are businessmen who do not sell goods in name but establish a link between the buyer and the seller and receive commissions on the sale and purchase of their goods. The responsibility to get a job in which skill, art, and standard character are expressed is called profession. Finance is a set of principles and theories that relate to the acquisition and use of capital.

Land compensation is called rent, labor compensation is wages, service compensation is salary, capital compensation is interest, employer compensation is called profit, and government compensation is called tax. An item that is used as a substitute for something in the form of a paper note or metal coin is called a currency. Each of the world’s currencies has its own name.

US Dollar, Japanese Yen, British Pound, Kuwaiti Dinar, Saudi Arabian Riyal, Indian and Pakistani Rupee, etc. Any business transaction between two persons or two entities is called a transaction. The process of purchasing products from a foreign country is called import and the process of selling products from a foreign country is called export.

Any trademark, image, logo, or symbol used to denote or mark the manufacturer or distributor of a product is called a trademark while a slogan is a short message. Is that which reflects the main idea. Usually, people can’t tell the difference between a trademark and a slogan. Trademarks have legal protections, not necessarily slogans. When it comes to advertising with an object or person behind the scenes, this is called publicity. When something is to be advertised, it is called an advertisement.

If the surplus rupee is circulated out of commercial need then it is called inflation and if the rupee which is less than commercial requirement is circulated then it is called deflation. Supply refers to a specific quantity of an item that is brought to market for sale at a certain price.

The total quantity of goods that all consumers buy at one time at these prevailing prices is called demand. The basic meaning of structure is to change the shape of one thing to make another thing. The work that performs or does this work is called the manufacturer.

All the things that can satisfy human needs are called wealth, any form of wealth that is used to create more wealth is called capital. That is, capital is the amount of money that the trader invests in the business, all the goods that are invested in the business for the purpose of making a profit are called assets. Liabilities refer to all amounts owed by a business. Sales are the sale of goods for a fee. The purchase of goods is called payment.

Factors that are related to each other, such as planning, guidance, coherence, etc., are called management. The administration is a part of management whose job is to see to what extent the procedure that has been set is being followed properly. An estimate of income and expenditure for a certain period of time is called a budget.

The organization is generally the name of combining the efforts of the individual and the individual in such a way that better tasks can be performed. The efforts made in the organization to promote any organization are divided into different small sections such as production, environment, and marketing sectors which are called (departments). These departments are divided into zones, sections, divisions, units, and branches on a regional basis.

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