Trader in Germany, 16th century

San Juan de Dios Market in Guadalajara, Jalisco

Trade is the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.

Trade exists for man due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations.

Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.^[1] Wholesale trade is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.^[2]

Trading can also refer to the action performed by traders and other market agents in the financial markets.

History of trade[link]

The neutrality of this article is questioned because of its systemic bias. In particular, there may be a strong bias in favor of European history. Please see the discussion on the talk page. Please do not remove this message until the issue is resolved. (August 2010)

Prehistory[link]

Trade originated with the start of communication in prehistoric times. Trading was the main facility of prehistoric people, who bartered goods and services from each other before the innovation of the modern day currency. Peter Watson dates the history of long-distance commerce from circa 150,000 years ago.^[3]

Ancient history[link]

A silver statuette of Mercury the Roman god of trade. Part of the Berthouville Treasures

Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age. Materials used for creating jewelry were traded with Egypt since 3000 BC. Long-range trade routes first appeared in the 3rd millennium BC, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze. For this purpose they established trade colonies the Greeks called emporia. From the beginning of Greek civilization until the fall of the Roman empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including India and China. Roman commerce allowed its empire to flourish and endure. The Roman empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy.

The fall of the Roman empire, and the succeeding Dark Ages brought instability to Western Europe and a near collapse of the trade network in the western world. Trade however continued to flourish among the kingdoms of Africa, Middle East, India, China and Southeast Asia. Some trade did occur in the west. For instance, Radhanites were a medieval guild or group (the precise meaning of the word is lost to history) of Jewish merchants who traded between the Christians in Europe and the Muslims of the Near East.

Middle Ages[link]

During the Middle Ages, Central Asia was the economic center of the world.^[4] The Sogdians dominated the East-West trade route known as the Silk Road after the 4th century AD up to the 8th century AD, with Suyab and Talas ranking among their main centers in the north. They were the main caravan merchants of Central Asia.

From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Russia. The Hanseatic League was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic, between the 13th and 17th centuries.

Age of Discovery[link]

Vasco da Gama pioneered the European Spice trade in 1498 when he reached Calicut after sailing around the Cape of Good Hope at the southern tip of the African continent. Prior to this, the flow of spice into Europe from India was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Discovery in Europe. Spices brought to Europe from the Eastern world were some of the most valuable commodities for their weight, sometimes rivaling gold.

In the sixteenth century, the Seventeen Provinces were the centre of free trade, imposing no exchange controls, and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, Holland in the 17th century, and the British in the 18th century. The Spanish Empire developed regular trade links across both the Atlantic and the Pacific Oceans.

Danzig in the 17th century

In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticised Mercantilism, and argued that economic specialisation could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive. Smith said that he considered all rationalisations of import and export controls "dupery", which hurt the trading nation as a whole for the benefit of specific industries.

In 1799, the Dutch East India Company, formerly the world's largest company, became bankrupt, partly due to the rise of competitive free trade.

Berber Trade with Timbuktu, 1853

Age of Reason[link]

In 1817, David Ricardo, James Mill and Robert Torrens showed that free trade would benefit the industrially weak as well as the strong, in the famous theory of comparative advantage. In Principles of Political Economy and Taxation Ricardo advanced the doctrine still considered the most counterintuitive in economics:

When an inefficient producer sends the merchandise it produces best to a country able to produce it more efficiently, both countries benefit.

The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports.

John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate the terms of trade through maintaining tariffs, and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal, rather than completely free, trade policies. This was followed within a few years by the infant industry scenario developed by Mill promoting the theory that government had the "duty" to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialise and out-compete English exporters. Milton Friedman later continued this vein of thought, showing that in a few circumstances tariffs might be beneficial to the host country; but never for the world at large.^[5]

Twentieth century[link]

The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators.

The lack of free trade was considered by many as a principal cause of the depression. Only during the World War II the recession ended in the United States. Also during the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank and Bank for International Settlements). These organisations became operational in 1946 after enough countries ratified the agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade.

Free trade[link]

Free trade advanced further in the late 20th century and early 2000s:

• 1992 European Union lifted barriers to internal trade in goods and labour.
• January 1, 1994 the North American Free Trade Agreement (NAFTA) took effect
• 1994 The GATT Marrakech Agreement specified formation of the WTO.
• January 1, 1995 World Trade Organization was created to facilitate free trade, by mandating mutual most favoured nation trading status between all signatories.
• EC was transformed into the European Union, which accomplished the Economic and Monnetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states as of January 1, 2007.
• 2005, the Central American Free Trade Agreement was signed; It includes the United States and the Dominican Republic.

Protectionism[link]

Protectionism is the policy of restraining and discouraging trade between states and contrasts with the policy of free trade. This policy often takes of form of tariffs and restrictive quotas. Protectionist policies were particularly prevalent in the 1930s, between the great depression and the onset of World War II.

Religion[link]

Muslim teachings encourage trading (and condemn usury or interest). By trade the whole society get benefits but interest makes rich more rich and poor more poor.^[6][7]

Judeo-Christian teachings encourage traders to avoid dishonest gain.^{[citation needed]}

Development of money[link]

Ancient Athenian Greek Drachma coin

Roman denarius

The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic value; historical examples include pigs, rare seashells, whale's teeth, and (often) cattle. In medieval Iraq, bread was used as an early form of money. In Mexico under Montezuma^{[disambiguation needed ]} cocoa beans were money. [1]

Currency was introduced as a standardised money to facilitate a wider exchange of goods and services. This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years.

Numismatists have examples of coins from the earliest large-scale societies, although these were initially unmarked lumps of precious metal.^[8]

Ancient Sparta minted coins from iron to discourage its citizens from engaging in foreign trade.

Current trends[link]

Doha rounds[link]

The Doha round of World Trade Organization negotiations aims to lower barriers to trade around the world, with a focus on making trade fairer for developing countries. Talks have been hung over a divide between the rich developed countries, represented by the G20, and the major developing countries. Agricultural subsidies are the most significant issue upon which agreement has been hardest to negotiate. By contrast, there was much agreement on trade facilitation and capacity building.

The Doha round began in Doha, Qatar, and negotiations have subsequently continued in: Cancún, Mexico; Geneva, Switzerland; and Paris, France and Hong Kong.

China[link]

Beginning around 1978, the government of the People's Republic of China (PRC) began an experiment in economic reform. In contrast to the previous Soviet-style centrally planned economy, the new measures progressively relaxed restrictions on farming, agricultural distribution and, several years later, urban enterprises and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, particularly by farmers, that led to increased productivity and output. One feature was the establishment of four (later five) Special Economic Zones located along the South-east coast.

The reforms proved spectacularly successful in terms of increased output, variety, quality, price and demand. In real terms, the economy doubled in size between 1978 and 1986, doubled again by 1994, and again by 2003. On a real per capita basis, doubling from the 1978 base took place in 1987, 1996 and 2006. By 2008, the economy was 16.7 times the size it was in 1978, and 12.1 times its previous per capita levels. International trade progressed even more rapidly, doubling on average every 4.5 years. Total two-way trade in January 1998 exceeded that for all of 1978; in the first quarter of 2009, trade exceeded the full-year 1998 level. In 2008, China's two-way trade totaled US$2.56 trillion.

In 1991 the PRC joined the Asia-Pacific Economic Cooperation group, a trade-promotion forum. In 2001, it also joined the World Trade Organization. See also: Economy of the People's Republic of China

International trade[link]

A series on Trade
World trade
Policy Import Export Balance of trade Comparative advantage Trade law Trade pact Trade bloc Trade creation Trade diversion Export orientation Import substitution Trade finance Trade facilitation Trade route Domestic trade Tax, tariff and trade
Restriction Trade barriers Tariffs Non-tariff barriers Import quotas Tariff-rate quotas Quota share Import licenses Customs duties Export subsidies Technical barriers Bribery Exchange rate controls Embargo Safeguards Countervailing duties Anti-dumping duties Voluntary export restraints
History Mercantilism Protectionism Laissez-faire Free trade Economic nationalism Economic integration
Organizations World Trade Organization World Customs Organization International Monetary Fund Preferential trading area Free trade area Customs union Single market Economic union Monetary union Fiscal union Customs and monetary union Economic and monetary union
Issues Intellectual property rights Smuggling Competition policy Government procurement Outsourcing Globalization Fair trade Trade justice Emissions trading Trade sanctions War Currency Customs Trade Trade and development
Lists Imports Exports Tariffs Largest consumer markets Leading trade partners
By Country Trade mission Trading nation United States Argentina Pakistan Romania Vietnam India
v t e

International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly because of Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization".

Empirical evidence for the success of trade can be seen in the contrast between countries such as South Korea, which adopted a policy of export-oriented industrialization, and India, which historically had a more closed policy (although it has begun to open its economy, as of 2005). South Korea has done much better by economic criteria than India over the past fifty years, though its success also has to do with effective state institutions.

Trade sanctions[link]

Trade sanctions against a specific country are sometimes imposed, in order to punish that country for some action. An embargo, a severe form of externally imposed isolation, is a blockade of all trade by one country on another. For example, the United States has had an embargo against Cuba for over 40 years.

Trade barriers[link]

Although there are usually few trade restrictions within countries, international trade is usually regulated by governmental quotas and restrictions, and often taxed by tariffs. Tariffs are usually on imports, but sometimes countries may impose export tariffs or subsidies. All of these are called trade barriers. If a government removes all trade barriers, a condition of free trade exists. A government that implements a protectionist policy establishes trade barriers.

Fair trade[link]

The fair trade movement, also known as the trade justice movement, promotes the use of labour, environmental and social standards for the production of commodities, particularly those exported from the Third and Second Worlds to the First World. Such ideas have also sparked a debate on whether trade itself should be codified as a human right.^[9]

Importing firms voluntarily adhere to fair trade standards or governments may enforce them through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the common prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with fair trade labeling requirements.

Notes[link]

Bibliography[link]

Economics portal

Wikimedia Commons has media related to: Trade

• Beckwith, Christopher I (2011) [2009]. Empires of the Silk Road: A History of Central Eurasia from the Bronze Age to the Present. Princeton: University Press. ISBN 978-0-691-15034-5. 
• Bernstein, William (2008). A Splendid Exchange: How Trade Shaped the World (2009 British ed.). London: Atlantic Books. ISBN [[Special:BookSources/9711843548034|9711843548034]]. 
• Davies, Glyn (2002) [1995]. Ideas: A History of Money from Ancient Times to the Present Day. Cardiff: University of Wales Press. ISBN 978-0-7083-1773-0. http://www.ex.ac.uk/~RDavies/arian/origins.html. 
• Nomani, Farhad; Rahnema, Ali (1994). Islamic Economic Systems. New Jersey: Zed Books. ISBN 1-85649-058-0. 
• Watson, Peter (2005). Ideas: A History of Thought and Invention from Fire to Freud. New York: HarperCollins Publishers. ISBN 978-0-06-621064-3. 

Pau Gasol

Gasol with the Lakers
No. 16 – Los Angeles Lakers
Power forward/Center
Personal information
Born	(1980-07-06) July 6, 1980 (age 31) Barcelona, Spain
Nationality	Spanish
Listed height	7 ft 0 in (2.13 m)
Listed weight	250 lb (113 kg)
Career information
NBA Draft	2001 / Round: 1 / Pick: 3rd overall
Selected by the Atlanta Hawks
Pro career	1998–present
Career history
1998–2001	Barcelona (Spain)
2001–2008	Memphis Grizzlies
2008–present	Los Angeles Lakers
Career highlights and awards
2× NBA Champion (2009–2010) NBA Rookie of the Year (2002) 4× NBA All-Star (2006, 2009–2011) All-NBA Second Team (2011) 2× All-NBA Third Team (2009–2010) NBA All-Rookie First Team (2002) J. Walter Kennedy Citizenship Award (2012) FIBA World Championship MVP (2006) EuroBasket MVP (2009) Spanish King's Cup MVP (2001) Spanish League Finals MVP (2001) All-Euroleague Second Team (2001) 7× European Player of the Year 2× FIBA Europe Player of the Year (2008–2009) 2× Mister Europa Player of the Year (2004, 2009) 3× Euroscar Player of the Year (2008–2010)
Stats at NBA.com

Medal record
Competitor for  Spain
Men's Basketball
Summer Olympics
Silver	2008 Beijing	National Team
FIBA World Championship
Gold	2006 Japan	National Team
FIBA European Championship
Bronze	2001 Turkey	National Team
Silver	2003 Sweden	National Team
Silver	2007 Spain	National Team
Gold	2009 Poland	National Team
Gold	2011 Lithuania	National Team

Pau Gasol i Sáez (Catalan pronunciation: [ˈpaw ɡəˈzɔɫ]) (born July 6, 1980) is a Spanish professional basketball player for the Los Angeles Lakers of the National Basketball Association (NBA). He was born to Marisa Sáez and Agustí Gasol, and he spent his childhood in Spain. Gasol was drafted by the Atlanta Hawks in the 2001 NBA Draft, but his rights were traded to the Memphis Grizzlies, with whom he won the NBA Rookie of the Year Award. He currently holds the Memphis Grizzlies franchise records for career games played, minutes played, field goals made and attempted, free throws made and attempted, offensive, defensive, and total rebounds, blocked shots, turnovers, and points.^[1] After seven seasons with the team, Gasol was traded to the Lakers on February 1, 2008. His younger brother, Marc Gasol, who was involved in that trade, is also a professional basketball player for the Memphis Grizzlies of the NBA.

Early career[link]

FC Barcelona Basquet (1998–2001)[link]

Pau Gasol was born in Barcelona.^[2] He began playing basketball with his school team called Alvirne, and he eventually signed with Cornellà.^[3] When he was sixteen, he began playing for Barcelona's junior team.^[3] He also won both the 1998 Albert Schweitzer Tournament and the 1998 FIBA Europe Under-18 Championship.^[4] After moving to the senior team of Barcelona, Gasol played just 25 total minutes in the Spanish ACB League 1998–99 season, and averaged 13.7 minutes per game in the ACB the next year.^[5] However, in his final season in the ACB, Gasol averaged 12.4 points and 5.8 rebounds in 24.7 minutes per game.^[5] Barcelona was victorious in the Spanish National Cup championship game in 2001, and Gasol was named Most Valuable Player.^[4] After entering the NBA Draft, Gasol was selected third overall in the first round in the 2001 NBA Draft by the Atlanta Hawks,^[6] who traded his draft rights to the Memphis Grizzlies in exchange for Shareef Abdur-Rahim.^[7]

NBA career[link]

Memphis Grizzlies (2001–2008)[link]

In Gasol's first season with the Grizzlies, he won the Rookie of the Year Award,^[8] and was named to the All-Rookie first team.^[9] He averaged 17.6 points and 8.9 rebounds per game, and was also the only team member to play in all 82 games that season.^[10] Gasol led the team in scoring (19.0 points per game) in his second year with the team, and for the second year in a row, played in all 82 games.^[10] Gasol missed the first game of his career, during his third year, with a foot injury on April 5, 2004, which snapped his string of 240 consecutive games played.^[11] He grabbed the 1,500th rebound of his career on November 12, 2003, against the Orlando Magic and scored his 3,000th career point on October 31, 2003, against the Boston Celtics.^[12] Despite having 22 points in Game 4 against the San Antonio Spurs, the highest by a Memphis players in the playoffs, his team was eliminated in the first round, not winning a single game against San Antonio. This was both the Grizzlies and Gasol's first trip to the NBA Playoffs.^[13] He scored 31 points and blocked four shots on January 11, 2005, against the Indiana Pacers to earn 5,000 points and 500 blocks in his career, becoming the 10th fastest player to reach 5,000 points/500 blocks since 1973–74.^[12] He also helped his team make it to the playoffs for the second time in his career, but they were eliminated in the first round and did not win a single game against the Phoenix Suns.^[14]

Gasol was with the Memphis Grizzlies from 2001–2008 until he was traded to the Los Angeles Lakers during the 2007–08 season.

In his fifth year with the team, he became the franchise’s all-time leading rebounder on March 24 against the New York Knicks when he grabbed his 3,072nd rebound in a Grizzlies uniform.^[12] He made 29 consecutive free throw attempts from January 24 to January 28, tying the second best mark in Grizzlies history, including two straight games going 12–12 from the line, tying the best single-game mark in franchise history.^[12] Gasol and the Grizzlies returned to the playoffs for the third time in his and his team's history. Once again, they were eliminated in the first round and did not win a single game against the Dallas Mavericks.^[15]

On February 9, 2006, making his first appearance, Gasol was selected to play in the 2006 NBA All-Star Game in Houston, Texas as a reserve center for the Western Conference. At the time, he was one of four players ranked among Western Conference forwards in the top ten in points, rebounds, assists and blocked shots.^[16] He was the first Spanish basketball player as well as the first Grizzlies player to ever make it to the All-Star Game.^[16]

Gasol missed the first 23 games of the 2006-07 NBA season due to a broken foot suffered near the end of Spain's semifinal win over Argentina in the 2006 FIBA World Championship.^[12] He would go on to be named Most Valuable Player of the tournament, which Spain won.^[12] He had a season-high 34 points (most by a Grizzly that season), and eight rebounds and tied a career-high and franchise record with eight blocks on January 29 against the Sacramento Kings,^[17] and surpassed Shareef Abdur-Rahim as the franchise's all-time leader in free throw attempts on January 31 against the Dallas Mavericks.^[12] He became the all-time franchise leader in field goals made on February 6 against the Houston Rockets,^[12] and became the all-time franchise leader in minutes played on February 7 at Dallas.^[12] He surpassed Shareef Abdur-Rahim (7,801 points) as the Grizzlies' all-time leading scorer on March 7, 2007, against the Toronto Raptors (7,809 points at the time).^[12] On January 24, 2007, Gasol recorded his second career triple-double against the hosting Utah Jazz, garnering 17 points, 13 rebounds, and 12 assists. He also registered 2 blocks and one steal.^[18]