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Trade

Trade involves transferring the goods or services from one person or entity to another, often in exchange for money. Economist’s refer to a system or network that allows trade as a market.

In one modern view, the trade exist’s due to the specialization and the division of labour, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use of their output in trades for other products and needs. Trade will exists between the regions because their different regions may have a comparative advantage in the production of some trade-able commodity—including the production of natural resources scarce or limited elsewhere.

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