The basic of trade Even in primitive societies the great majority of people satisfy a large part of their material

needs by exchanging goods and services. Very few people indeed can make for themselves everything they need all their food, their clothes, their housing and their tools. Ever since man started living in communities, they have been satisfying their needs by means of specialization and exchange ; increasingly each individual concentrated on what he or she can do best, and has produced more than he can consume himself of these special goods or services. He has supplied other members of the community with the surplus, and in exchange he has acquired the thing he need which others have produced. Thhe more advanced the community, the more complicated does the dual process of specialization and exchange become. In primitive communities therewill only be a few goods or serviced produced ; they will be exchange by barter. In more sophisticated societies, the range becomes very much greater, and it become necessary to have special mechanism to regulate the exchange of goods and services. This special mechanism we call money . and again, as society become more complex, the types of money and the ways in which buyers and sellers are bought together become and more intricate, and so we have evolved the vast network of world trade yhat exist today. But however complicated the system, he principle behind its exactly the same as its in primitive village community where some of the men hurt and other fish, while the women weave cloth and where these simple goods are exchanged so that everbody has something to eat and something to wear.

A merket is commonly thought of as a place where commodities are bought and sold. Thus fruit and vegetables and meat are sold wholesale at certai big market. But there are markets for things other than commodities in the usual sense. There are real estate markets, foreign exchange markets,labor markets,and so on. There may be a market for anything that has a price. And there may be no patricular place, to which trade is restricted. Buyers and sellers may be steered over the whole world, and inserted of meeting together in the market place they may trade with another by telephone, cable or letter and agents may act in instructions from clients far away. Thus agents may buy grate quantities of meat on behalf of retail butchers all over the country and brokers on the stock exchange may buy and sell securities on instructions from clients all over the world. We must theofore define a market as any idea over which buyers and sellers are in such close touch whit one another, either directory or throughtout agents, that he princes obtainable in one of part of the market affect the prince paid in other parts. Modern means of communication are so rapid that a buyer can discover what price a seller is asking, and accept it if he wishes although he may be thousands of miles away. Theoritically speaking the market for any commodity may be whole the world, but in the fact things have, normally, only a local or national market . the main reason why many thing dont have a world market is that they are expesive or difficult to transport. Coal is produced much more cheaply in the united states than in europe, but because the costs of transporting it by rail from the inland mines are high, american coal is seldom exported to europe. Sea transport, however, is very much a header than land transport. Therefore commodities that be sent by sea and which are produced near port can oftem be transported quite long distances. Thus swedish iron ore comes by sea to the rohr, and britush coal transported to canada. The markets for real estate are local, because the markets for land and buildings are usually restricted to certain localities. Soil has been transported from french vineyards to california, and hysteric mansions have been pulled down in europe to built again in the united states, but as a rule land buildings are not transported. Some goods, like new bread and fresh cream, must be consumed very soon after they have been produced, and this restricts their sale to local markets. Other goods dont travel well. Many local wines which cannot be transported can be bought in the district more cheaply than similar wines which have wider market. Transport services by rail, or tram are obviously local in that passengers or goods must travel between points on the fixed track. In the same time way such thing as gas, water electricity supplied by means of a system of pipes or wires cannot be sold to places which are not connected to such as system.

5. why is it not strictly correct do define a market as a place where buyers and sellers actually meet each other? 9. why do many things not have a world market? 13. why is the market for perishable goods usually local? 14. Why do so few wines have a world market? 15. adverb