Trade

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To trade is to willingly give things or services and get other things or services in return. For example, a person giving a thing must find another person who wants to get that thing. The giver gets something back in return.

Other Words[change | change source]

A trade is also called an exchange or a swap.

Trades with Goods, Services and Money[change | change source]

The things that are given from one person to the other are called goods.

Services can also be part of a trade. One person can do a job or work for another, and get something in return in a trade.

Money can be given in return for a service or for a thing. If money is part of the trade, then the person who gives the money is buying, and the person who gets the money is selling.

More Words[change | change source]

A place where trading takes place is called a market.

When there is no money involved in the trade, the trade is called barter. If there is money involved in the trade, the trade is called a purchase. In the past people would barter to get what they wanted, instead of buying goods and services.

Economics is the study of trade.

Countries and Trade[change | change source]

Today, trade occurs not just between people, but also between large companies and even countries. Countries sometimes take some of the money or goods involved trade between countries. This is a type of tax called a tariff. Smugglers try to trade without paying tariffs.

Free trade between two countries is when there are little or no tariffs on trade.