This document discusses various topics related to trade and economics. It defines trade as the buying, selling and exchange of goods and services. It defines aids to trade as activities that facilitate trade, such as banking, transportation, insurance, warehousing, packaging and advertising. It also classifies trade into internal/home trade within a country and international/external trade between countries. The document defines economics as the study of human activities related to allocating scarce resources to produce goods and services. It discusses different economic systems including capitalist, socialist and mixed systems.

1. PRESENT ED B Y
M r s. A sh w i ni Sh elke
(Depar t ment o f Ph ar mac eut i c al Ch emi st r y )
SANDIP INSTITUTE OF PHRM ACEUTICAL
SCIENCES, NA SHIK
Trade

2. Trade
 Trade:
 Trade means buying, selling and exchange of goods
& services.

3. Aids-to-trade
 Definition: The activities which facilitate trade are
called aids to trade.
OR
 These are the commercial activities revolving around
the trade which boost the trade.

4. List of aids-to trade
 Banking
 Transport
 Insurance
 Warehousing
 Packaging
 Advertising and publicity

5. Various activities which revolves around trade.
 Banking: Exchange of goods with money is solved by
services of banks and financial institutions
 Transport: Transportation overcomes hindrance of
Place. It helps trade by moving goods from the place
of its production to locations where these are sold for
consumption.
 Insurance: Despite efficient transportation and
packaging there may be loss of goods. This may be
overcome by providing insurance cover of the goods
during transportation and storage. Various types of
insurances are fire, marine and general.

6.  Warehousing Goods are prepared before demand, so
proper storage is required. Warehousing facilities solve
this problem
 Packaging The goods get spoiled or damaged during
transportation. This hindrance is overcome by proper
and safe packaging of goods.
 Advertising and publicity Advertising and publicity
agencies overcomes Hindrance of Knowledge.
Advertising and publicity can be undertaken through
radio, T.V, newspapers etc.
 The main object of advertising and publicity is to create
demand of goods produced by the manufactures.

7. Classification of Trade:
1) Internal trade/Home trade:
 It consists of sale and exchange of goods within the
boundaries of a country.
 It is further classified as follows :-
Wholesale trade: It involves sale of goods in
comparatively large quantities to those traders who
are in direct contact with retailers.
 Retail trade: In this trade the retailers supply the
requirements of consumers in small quantities as per
their needs.

8. 2) International trade/External trade:
 It means the exchange of goods and services between
different countries.
Import trade – When a trader of one country purchases
goods from the traders of other countries, it is called as
import trade.
Export trade- When the trader of one country sells goods
to the trader of other countries, this trade is called as
export trade.
Entreport trade- When trader purchases goods from one
country and sells the same goods to another country, it is
called as entreport trade

9. Economics:
 Economics:
 It is a social science concerned with proper use of
allocation of resources for achievement of various
human needs.
 Economics is the social science ,concern with the
employment of a scarce resources of society ,having
alternative uses to produce goods & services.

10. Various elements of economics
1) Economics is the study of human activities in
relation to wealth only.
2) Economics studies about how man earns his income
& its expenditure.
3) It systemically collects, classifies & analyses the
economic facts.
4) Modern elements of economics are the study of the
economic system under which man live & work.
5) Economics is a pure science & not art .Its function is
to explore & explain & to solve the problem.

11. Types of economic systems
 There are three types of economic systems –
 Capitalist
 Socialist and
Mixed

12. 1. Capitalist system
1. Capitalist system –
 There is freedom for the producers to acquire any
property and to produce any product.
 The consumers are also free to use any product in any
amount, they are at liberty to spend their income.
 The means of production and distribution are
generally in the hands of private owners.
 The role of government is to protect the producers and
consumers so as to avoid unhealthy competition and
 also to provide essential services to the public
economically.

13. 2. Socialist system
2. Socialist system –
 The large and basic industries are owned and
controlled by the government, even the distribution
is controlled by the govt.

14. 3. Mixed system
3. Mixed system –
 The activities of both the systems capitalist and
socialist are used.
 It means some economic activities are controlled by
the government and certain other economic
activities are kept open for the public.