It is widely believed that the mediators are not needed: they do notproduce, but only increase the price of goods. However, the fallacy of suchviews is obvious. An illustrative example - the brokerage traderfood products, which makes the communication of manufacturers andConsumer food cheaper and more convenient for those forother. You can imagine how much time and effort it would takefor the preparation of culinary dishes, even one, if customershad to deal directly with farmers to buy their vegetables,fruit, milk, butter, cheese, go to the fishermen to agree onsupply of fish, and the owner of the ranch - to buy beef.Intermediaries perform all of these contacts rather than consumers, and deliveringselling goods in a specially adapted for this purpose place. Servicesintermediaries reduce the costs of trade, allowing potentialbuyers and sellers to extract from the trade even more benefits. Theyincrease the volume of trade, thereby contributing to economic growth.
Sunday, August 12, 2012
Obstacles to hurt trade
However, in many cases, the high costs of trade generated by the
Trade is productive, it facilitates the cooperation of people and increases theproduction of the goods they needed. However, the trade exchange is not free.Costs time, energy and other resources required to search for partnersnegotiation and conclusion of transactions, called the cost of trade.They limit the realization of the benefits of fair trade.Costs of trade may be the result of natural barriers - the oceans,mountains, rivers and swamps. In these cases, costs can be reduced byinvestment in roads, transport and communications.society itself - the existence of taxes, licenses, tariffs, quotas,government regulation and price controls.Whoever they were created - by nature or human beings - the high costreduce its trade advantage.A very important role played by intermediaries in the economy, contributing to the conclusiontransactions and provide the parties that process information and otherservices: real estate agents, stock brokers, car dealers, advertising agents, vendors and stores a wide range of other professions businesses.
It is widely believed that the mediators are not needed: they do notproduce, but only increase the price of goods. However, the fallacy of suchviews is obvious. An illustrative example - the brokerage traderfood products, which makes the communication of manufacturers andConsumer food cheaper and more convenient for those forother. You can imagine how much time and effort it would takefor the preparation of culinary dishes, even one, if customershad to deal directly with farmers to buy their vegetables,fruit, milk, butter, cheese, go to the fishermen to agree onsupply of fish, and the owner of the ranch - to buy beef.Intermediaries perform all of these contacts rather than consumers, and deliveringselling goods in a specially adapted for this purpose place. Servicesintermediaries reduce the costs of trade, allowing potentialbuyers and sellers to extract from the trade even more benefits. Theyincrease the volume of trade, thereby contributing to economic growth.
It is widely believed that the mediators are not needed: they do notproduce, but only increase the price of goods. However, the fallacy of suchviews is obvious. An illustrative example - the brokerage traderfood products, which makes the communication of manufacturers andConsumer food cheaper and more convenient for those forother. You can imagine how much time and effort it would takefor the preparation of culinary dishes, even one, if customershad to deal directly with farmers to buy their vegetables,fruit, milk, butter, cheese, go to the fishermen to agree onsupply of fish, and the owner of the ranch - to buy beef.Intermediaries perform all of these contacts rather than consumers, and deliveringselling goods in a specially adapted for this purpose place. Servicesintermediaries reduce the costs of trade, allowing potentialbuyers and sellers to extract from the trade even more benefits. Theyincrease the volume of trade, thereby contributing to economic growth.
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