What do you mean by global trade?
Trade is something people and companies do every day – the buying and selling of goods and services. People have traded for centuries in order to overcome local scarcities. It can involve local transactions, such as food from a farmers’ market or purchasing a hair cut. Today trade is far more global, made easier by efficient modes of transport and communications. Fresh fruits and vegetables can be supplied and bought from countries such as South Africa and New Zealand and services such as call centres are now supplied from almost anywhere in the world.
Many governments intervene in the trading system to support local firms and farmers and to protect the environment (commonly known as protectionism). Alternatively, many governments have decided to open up their trading markets (commonly known as ‘free trade’ or trade liberalisation) in the belief that more trade between nations will stimulate growth and ultimately increase prosperity.
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