Prednášky - Foreign trade operations

Prednášky – Foreign trade operations

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1. PREDNÁŠKA (12/2/2001) 1. THEORY OF TRADE Theory of Absolute Advantage Theory of Comparative Advantage Theory of Factor Proportions Retailing Wholesaling What gave rise to a trade? - extended division of labour and production of goods TRADE = specific economic activity joining production with consumption - is a part of reproduction - buying and selling goods and services In the very beginning - simple exchange "exchange in kind" (goods were exchanged in/for goods) characteristic for less developed societies that were able to produce products in limited amounts (required). Advanced developed society - elaborate network of trade among individuals, companies, countries; depending on producing particular products. Money facilitates / enables exchange of goods in which the value of a product modifies to its monetary equivalent. Commerce is a specific business activity Commerce establishments make it possible for shop assistants to buy goods from producers. Trade went through a complex evolution up to a present form and according to the criteria (see below) trade is divided into different forms of trade. CRITERIA CLASSIFICATION 1. according to territory home trade, foreign trade, international & world trade 2. division of labor in a trade activity wholesale, retail, middlemen (in indirect business matters - EXP/IMP transactions) 3. legality legal trade, illicit trade, grey trade 4. place of business in the country, in a town 5. commodity trade with goods, food - stuff, services Statistics considers 2 main categories of trade - retailing & wholesale. 1.1. RETAILING covers all of the activities involved in the sale of products to final consumers for their personal usage (not for their entrepreneurial purpose). Retailing takes place in retailing shops that consider being an organisation units of so-called retail network/system. Except retail shops (organisation unit of a retail system), retail network encompasses also different retail business/buildings that provide special services to public. Retailer takes over entrepreneurial risk of goods havent been sold.