Types of Trade

TYPES OF TRADE

Introduction

Under ‘barter system’ in olden days goods were exchanged for goods. After the invention of money as a medium of exchange, all purchases are made in exchange of money. Similarly sale transactions are  possible in exchange of money. The producers producing the goods in large quantities find it difficult to sell the goods directly to the scattered consumers. Trade connects producers and consumers and enables them to sell and purchase from wherever they are.