Tuesday, December 23, 2014

Basic Guide To Trade Stuff

By Stacey Burt


The only drawback was that the money had to be an agreement within a community, could have no money sense out of context. For example, if the exchange element of a community were whale teeth, those teeth were worthless outside the community (trade stuff). So a little later came the concept of currency. Currency, now is an element of exchange accepted in an area much more extended than the community itself.

The merchant is the natural or legal person engaged in trading frequently, such as commercial companies. Trading word is also used to refer to a shop or store. The harvests were larger than necessary for the survival of community. It was not necessary that the whole community is devoted to agriculture, therefore part of population began to specialize in other matters, such as pottery or steel.

Trading through these routes was a direct trading. Most of goods owner changed every few tens of kilometers to reach the rich European courts. Nevertheless, these early trading routes and began making raised in states regulating imports. There was even a time when the use of silk for clothing in males was banned, in order to reduce the consumption of this expensive product.

The Crusades were an important trading route created indirectly. The route was created following the movement of troops, supplies, weapons, skilled artisans, spoils of war, etc. Reactivated the economy of many European regions. This merit is partly attributed to English King Richard the Lionheart, who engage in Third Crusade achieved significant business wins for Europe, such as the restoration of Silk Road, the recovery routes pepper.

Besides the exchange of innovations, trading also led to a gradual shift of societies. Now wealth could be stored and exchanged. They began to appear the first capitalist societies as we know them today, and also the first social stratifications. At first classes were just the villagers and family leader. Later came more sophisticated social classes like warriors, artisans, trading, etc.

Before the transport revolution of nineteenth century, consumer goods had to be manufactured near the place of destination. Was uneconomic to transport goods from a remote location. Along with the Industrial Revolution took place a number of innovations in transportation revitalized trading. Now the goods could be manufactured anywhere and be transported to a very inexpensive way to all points of consumption. One of first contributions to transportation revolution was the railroad. Britain was the pioneer in this field, as a result of that, currently has the most dense railway network in world. In Spain first railway line was built in 1840 among populations of Barcelona and Mataro.

The pioneers in this area were money changers operating in annual fairs and basically dedicated to make changes in currency charging a commission. These moneychangers were growing to point that were the great families of European bankers like the Medici, the Fugger and Welser.

The use of money in commercial transactions was a breakthrough in economy. Now there was no need for the parties to transaction needed goods from the opposite side. More advanced civilizations such as the Romans, extended this concept and began to mint coins. The coins were specially designed for this matter objects. Although these early coins, unlike modern coins, had the explicit value of coin in it. That is, the coins were made of metals such as gold or silver and the amount of metal they had was the face value of coin.




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