Understanding Trade, Transport, and Economic Balances
Classified in Geography
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Trade involves the purchase and sale of goods in order to meet the needs of the population. This former activity has allowed contact between cultures. Subsequently, with the onset of currency, it was possible to give a more accurate value to goods.
Domestic Trade
Domestic trade takes place within a country.
- Wholesale: Carried out by wholesalers who purchase large quantities of goods, sold to producers and other traders.
- Retail: Involves selling small quantities directly to the public.
Foreign Trade
Foreign trade is what a country conducts with other countries, involving exports and imports.
The Trade Balance
The trade balance is the difference between the value of goods a country sells abroad and the value of goods it buys from other countries:
- If the