The trade

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The trade

Abstract

Trade began during the Stone Age period where there was no medium of exchange and goods were exchanged for other goods, where one would give out what he or she has for exchange with other commodities. There are different reasons why people engaged in trade and this is determined by the specific place where they are located. In modern days, currency has made trade possible and easy because, the value of any commodity is easy to measure in terms of currency.

     The start of communication was the activity that initiated trade. It started long before the introduction of currency whereby the people would exchange goods and services with each other a trade that entailed long distanced people (Solomon, 2001). The man by the name Peter Watson was the father of long distance trade at around 150,000 years back. Trade is therefore, believed to have started during the stone age where people exchanged obsidian as well as fling. In addition, trade in jewelers in Egypt was done during 3000 BC. The long distance trade was also practiced at around third millennium by the Sumerians of Mesopotamia who traded with Harappan of Indus valley. The trade done in those days’ involved imperishable goods like silver and gold, metals among others. Between 3000 and 1000 BC, long distance trade was done through water. This was mainly through great rivers like Tigris, Euphrates and Nile. By 1000 BC, camels became the most famous means of transport. This is because these animals were very well adapted to the dry conditions and were the best to use for transportation in the desert for the trade between Arabs, Egyptians and Indians (Edwin, 1994). The emergence of many trade routes boosted the spread of trade throughout the world.

A number of reasons led to the start of trade. However, this depends on the specific place and people since different factors initiated its start. In addition, a number of developments led to the growth of particular trade. It should be noted that initially trade was done on the land but as days went by and a number of development began, trade also became a sea-based activity. There was also the emergence of currency that was a boost to trade among other modern day factors (Alfred, 2006). It should be noted that the modern trade was a systematic happening but not just an instamatic activity.

Trade refers to the act of the exchange of services and goods. Trade is done in a market. Initially, people practiced a trade known as barter trade where goods and services were exchanged without the use of money or any currency. This is because by then there was no currency. However, as trade grew, a medium known as money was used to trade for any commodity or service. The currency, which is used up to date, is either in form of coins or paper money. Trade between just parties is called bilateral trade while trade between many parties is known as multilateral trade (Earnest, 2005).

There are many reasons as to why trade began. This depends on the specific place. However, the key reason for the initiation of trade was the aspect of demand and supply. For instance, the slave trade began in America due to the need for cheap work force. Other material needs were traded due to the need for raw materials. For instance, the Europeans traded with the Africans in commodities like precious minerals because they needed raw materials. Trade began because some people had surplus and so by exchanging with what they did not have they ended up practicing barter trading (James, 1994).

A number of world developments led to the growth of trade. The development of infrastructure was such a great boost. Good means of transport, which involves development of airlines, better roads, electrified railway as well as improved means of water transport. All these helped in the sense that transportation was made easier. Moreover, these new and improved means of transport led to the development of new routes of trade. In addition, the evolvement of currency enabled the people to be able to trade well without having to carry goods for exchange. In addition, the industrial revolution led to a great demand of raw materials (Patricia, 2005). Development of trade organization like COMESA helped different countries to trade in harmony.

Initially, trade was a land-based activity. However, as time went by, trade was then shifted to the sea. This was because there were much activities happening at the coastal areas, which led to the sea trade. It was also discovered that a single sea route would reach so many market places or countries for trade. In addition, the development of trading centers in towns along the sea led to the development sea trade. Again, many people or visitors made use of the sea transport hence the growth of sea trade. Finally, the transportation of very bulky things initiated the shift (Remy, 1990).

Some of the modern day’s factors that influence trade are emergence of currency, industrial revolution that has caused great demand, good infrastructure, education evolution and new skills, which have led to innovation, hence demand.

Coffee as a trade commodity is the second largest commodity dealt with. Its trade originated in the thirtieth century. It began in Europe since the Europeans were the first people to discover the stimulant effect of the commodity. In addition, they were still the first people to get involved in its trade with the Venetian traders in 1615. However, the origin of coffee in Africa is not yet known (Dawn, 2003).

The popularity of coffee was initiated by its stimulant effects. Also among other beverages, it had the best taste. The issue of social interactions also led to its popularity. Coffee was also associated with intellectualism aspects.

Some of the problems encountered in the production of coffee include climatic issues, which at times led to poor production. Price fluctuation is another factor. In that when the prices go down, the production reduces. Other factors like coffee borne diseases that affect its production and the commercial policies set by the country of production determine its production (Dawn, 2003).

The issue of climate whereby lack of rains affects has been taken care of by the introduction of irrigation, which enables the stabilization. In addition, price fluctuation and the commercial policies have been dealt with through the introduction of trade agreements.

  1. Conclusion

In conclusion, the emergence of trade was a very important aspect in human life. Due to trade, many people are able to get what they do not have. In addition, trade has enabled people to get rid of their surplus goods. Trade has also paved way for a number of revolutions like industrial revolution and developments in different places. Moreover, trade has led to development of a good relationship between different communities, countries and people.

Despite that trade has brought about a lot of goodness, it has also led to some effects like insecurity due to social crimes. Therefore, there should be tight security especially at the boarders. Also due to the issue of adulteration, production standards should be put in place to ensure trade involves commodities of the best quality. The commodity producing countries should adjust their commercial policies so as not to exploit their trade partners.

References

Alfred, G. (2006). Factors influencing soviet trade warfare. Albany, NY: State university of New York press

Dawn, D. (2003). The coffee book. Chicago: university of Chicago.

Edwin, A. (1994). Rules of origin in international trade: a comparative study. Springfield, MA: G. & C. Merriam.

Ernest, E. (2005). The money market in relation to trade and commerce. Cambridge: Cambridge university press.

James, H. (1994) Sea-trade. Oxford: oxford university press.

Patricia, k. (2005). Currency. Oxford: oxford university press.

Remy, K. (1990). Sea trade center. Chicago: university of Chicago press.

Solomon, E.(2001). Trade. England: Penguin books.

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