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TRADE AND COMMERCE

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TRADE AND COMMERCE

commerce

general name to indicate business activities (selling and buying of goods)

trade

is a synonym of commerce but more specific

includes business services (bank, insurance, means of transport, means of payment, advertising)

is divided in two 515i89f parts: home and foreign

home trade

are all business activities and services inside one country

is slit into three steps: manufacture, wholesale and retail

foreign trade

are all business activities and services outside one country

is split into two parts: import and export

manufacture

transforms the products from row material to finish or semi-finished products

wholesale

buys goods in large quantities from manufacturers and sells them in small quantities to retailers

retail

sells goods in small quantities to individual consumers

import

is buying goods outside

export

is selling goods outside

e-commerce is a new modern way of selling and buying

in this you can leave out some steps and pay less (save up)


TYPES OF ECONOMY

there are three kinds of economy because government cane have different roles

THE CENTRALLY PLANNED ECONOMY

   the government decides everything

   lack of competition

   Cuba - China

THE FREE MARKET ECONOMY

   the government may still intervene even in free market economies

   private companies compete freely in the marketplace and the market decides which products or services to buy and from whom

   South East Asia -Singapore

THE MIXED ECONOMY

   some goods and services such as public transport, education, health care utilities (gas, electricity, etc.) are traditionally provided by the government

   private companies are free

   Italy - U.K.


PRIVATISATION

transferring productions of goods and services from the public to the private sector

the nationalised industries that during the 1980s were privatize by the Conservative Government are British Telecom, British Gas, British Petroleum, British Railways, British Airways

"denationalisation" consist in the selling of state industries to private sector

PROS

   leads to greater competition, which can result in providing better goods and services and lower prices

   consumers can have a greater choice and better services

CONS

   does not necessarily increase competition and quality of goods and services

   if competition is not increased, consumers don't always benefit from a better choice







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