1273641, Shavika Gaba, F2, Q32  Can Trade help poor?

INTRODUCTION

Trade refers to buying and selling of goods and services for money or money's worth. It involves transfer or exchange of goods and services for money or money's worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer.

Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of earning profit; it also provides service to the consumers. Trade is an important social activity because the society needs uninterrupted supply of goods forever increasing and ever changing but never ending human wants. Trade has taken birth with the beginning of human life and shall continue as long as human life exists on the earth. It enhances the standard of living of consumers. Thus we can say that trade is a very important social activity.

Different Types of Trade

 

DISCUSSION

Trade- a business of buying and selling. It doesn't require a very big knowledge of Science, Maths or English, it just require some money, some knowledge and a little bit alert with some responsibility. A higher class person having good sum of money can collect degrees and move towards a private or public job, but what about a poor man? A high class person can start his own business with his money but how do a poor person will manage? But trade is the solution by which a poor can also pull his life to some better position. Trade doesn't follow the caste, community, creed and the cult it just require the required money and the responsibility of the businessman. India is a country full of many traders specially lower class traders are there earning their livelihood by trade only. Agricultural sector, milk, dhabas, pheriwalas etc are the small tradings. Whether these sectors are not making their life so luxurious but at least they can feed their families. Even these sectors are helping the GDP of the country also. Government is also trying to evaluate these sectors with the developmental plans. Trading is the easiest way to the poor people for their livelihood. There are many examples there about the tycoons who were first poor but with these basic trade sectors they earned a high luxurious life. So, this way trading is the prominent way for poor.

 Trade really help poor to improve their conditions because they get good prices of their goods through trading. It is a good way through which they can commercialize their product well because in their area. All the people of their standard were there which can't give the appropriate price for their product but through trading they can get good amount which increase their income and in return help to increase demand of their Product.

Trade liberalization is expected to act positively on development and poverty reduction. The recent empirical literature identifies several key linkages through which trade liberalization affects development: the price and availability of goods, factor prices, government transfers, incentives for investment and innovation, terms of trade, and short-run risk.

The traditional argument in favour of a positive relationship between liberalization and poverty reduction focuses on the first two linkages. A large proportion of poor people work in the agricultural sector, where trade distortions are particularly high. Liberalization could lead to higher world agricultural prices and raise activity and remuneration in this sector in developing countries. The same beneficial outcome could occur in the textile and apparel sectors, where protection remains high and developing countries have a comparative advantage.

CONCLUSION

Trading is another means of earning for the poor. It also creates self employment in many cases. Apart from the people who depend mostly on farming, we can also note that India is very rich in art and culture. So there are many possibilities that people can come up with their talents, like for example, preparing hand loom products, embroidery, etc. Hence trading gives an opportunity to earn for poor as well as to spread the culture not only in India but also to the world. Hence trading not only improves the poor man's standards of living, but also the nation's economy.