Trade

Trade, buying and selling of commodities. It can take place within a nation (domestic trade) or between nations (foreign or international trade). Trade occurs because the people of a particular community or country do not produce all the goods they need. As a consequence, they must purchase these goods from another community or country. They may in turn sell their products to other communities or countries that need them. Trade among early peoples and civilizations usually involved an exchange of one product or service for another. For example, one group might have traded wood to another group for grain. As populations grew and their needs became more complicated, money became the medium of exchange and the boundaries of trade expanded. During the 13th, 14th, and 15th centuries, European merchants traveled to the Middle East and China in search of exotic goods. Overseas exploration created important trade between Europe and Africa and India, and between Europe and the colonies in both North and South America. Today in many countries, including the United States, trade occurs on many levels. People exchange money for services (subway or bus rides) and for goods (food, clothes, radios, and so on). Communities and states trade among one another, which explains why people in Ohio can buy California oranges. The United States also maintains a vast and active foreign trade with countries all over the world.