Trade is a branch of the economy, which is carried out directly by people and is aimed at carrying out such an action as purchase and sale. This set of actions, or a type of economic activity, is closely related to customer service, product advertising, its delivery and storage. Buyers are all people who purchase goods for which they pay. Both individuals and legal entities, whose rights are protected by law, can be buyers.
Trade
Trading dates back to the Stone Age. Even then, people exchanged, which is the essence of trade, of some goods, which were in excess, produced personally, for others. Already then it became clear how trade helps production. With the advent of money, people began to make purchases.
Trade is directly one of the most significant factors in the historical process. There is not a single period in history wherever it takes place. Currently, trade is one of the most significant sources of tax revenue in the country's budget.
Place of trade in production
In modern society, there are currently people who are left with the imprint of history, and they still do not understand that you can still do what you love, realize your idea and dreams. Now trade is not considered a crime, as it was during the USSR, they are not punished for it, on the contrary, it is an integral part of life, which is not only possible, but even necessary.
Speaking about how trade helps production, you can understand everything with an example. Let's imagine that you have a wonderful haircut and love to do it. By working for more than one year for strangers, you decide to quit and purchase your hairdresser, thinking that it is then that you will be happy. What can happen in practice? You buy a hairdresser, know how to do hairstyles and cut hair, that is, to produce a service, but people don’t come to you. In other words, you have no one to make beautiful and you have no profit. In order not to fall into a similar situation, no matter what you want to produce, services or building materials, you must understand that for good work you must be able to sell your goods. It is through trade that production flourishes, which must be understood.
"Demand creates supply"
Everyone knows this expression, which has been taking place for several decades among the people.
In general, people are deeply mistaken when they start to think that, having acquired even a ready-made prosperous and profitable business, they will become successful and rich. This is not true. Let's look at how trade helps production, using the example of a concrete plant.
Buying a concrete plant with established production and sales points for a lot of money, but not understanding how to manage it, you can at least go bankrupt. A man of the old school, having received such a plant, can, as usual, turn all his efforts and financing to improving the production process itself, thinking that the more he releases the product, the more he will be bought, what will be wrong. It is impossible in such a situation to disregard issues related to the sale of goods. If you spend more finances where they were not previously used, the cost of something else will be reduced. This can happen, for example, with points of sale.
As a result of such actions, the concrete plant will begin to produce more building materials, as the owner wants, but there will be nowhere to sell it, that is, it will not receive profit. Over time, being the property of such an owner (an old-school man, for whom production is the main thing), the plant will go bankrupt or, worse, fall into debt.
The owner of the concrete plant will suffer huge losses, and all because his thinking does not keep pace with the realities. Living in the modern world, it is necessary to keep up to date, think rationally, look around and analyze everything correctly. Using an example, it becomes clear how trade helps production. Grade 6 (program) passes this question, which can not be said about people who studied earlier.
Turning to statistics, we see that trade is an economic activity, and not a crime, as in the USSR. What exactly does it bring most of the revenue to the country's budget in the form of tax revenues. Having familiarized with the legislation, one can understand that entrepreneurship is supported by the state and is flourishing.
