Bővebb ismertető
1. COMMERCE: HOME TRADE AND FOREIGN TRADE I. What is COMMERCE?
All people, however simply they live, require at least food, clothing and helter. Those who satisfy wants by providing goods and services are producers, and those who use these goods and services are consumers. We are all, wothout exception, consumers, for we all want goods and services from others, and we are also producers, earning our living by selling what we can provide.
Let us suppose, that I, a consumeTj want a kilo of oranges. I cannot buy oranges from the grower himself, for he is a very long way away so I must pay others to do it for me. These are the traders sho buy and sell at a profit, 4:he profit being what they earn for their work. Traders, however, Merely buy and sell.
Oranges have to cover the long distance that separates consumers and producers and the various forms of transport enable this to be done.
Another difficulty the trader has to face is the risk he runs. The ship carrying the oranges may be sunk and the trader ruined. Nowadays insurance gives protection against all kinds of risk.
When the oranges arrive from abroad, not all of them are required at onca and the importer is faced with the difficulty of keeping them for a time. They cannot be left just anywhere, so suitable warehouses have to be provided at cenvenient points.
At times the trader may be short of money and may wish to borrow in order to be able to carry on his business. Moreover, different countries use different currencies. In sich cases the trader can obtain help from banks and other financial institutions.