chapter4


 * Trade***


 * Trade** is the voluntary exchange of goods, services, or both. Trade is also called commerce or transaction. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, **buying** can be separated from **selling**, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.


 * commerce***
 * Commerce** is a division of trade or production which deals with the exchange of goods and services from producer to final consumer OR commerce is the exchage of goods and services from the producer to the consumer. It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities. Commerce functions as the central mechanism which drives capitalism and certain other economic systems (but compare command economy, for example). **Commercialization** or **commercialisation** consists of the process of transforming something into a product, service or activity which one may then use in commerce. Commerce involves trade and aids to trade which help in the exchange of goods and services