Divisions

TRADING

Trade is the voluntary exchange of goods or services between different economic actors. Since the parties are under no obligation to trade, a transaction will only occur if both parties consider it beneficial to their interests.

KEY TAKEAWAYS
Trade refers to the voluntary exchange of goods or services between economic actors. Since transactions are consensual, trade is generally considered to benefit both parties. In finance, trading refers to purchasing and selling securities or other assets. In international trade, the comparative advantage theory states that trade benefits all parties. Most classical economists advocate for free trade, but some development economists believe protectionism has advantages.

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