Surely you at least once in your life exchanged goods, personal items with someone. But what is the meaning of the term in economics? This is what we will try to understand more thoroughly.
A bit of history
An economy based on the division of labor, sooner or later begins to demand the creation of a special mechanism for the mutual provision of goods and resources, as a result of which the producer could give back part of the goods produced by him, having received the missing components in return. Without such a mechanism, the principle of the division of labor would be meaningless; it would simply cease to work. Indeed, mutual interest is achieved only on the condition that due to the division of labor, the manufacturer manages to increase his productivity, and therefore, it is easy to free a certain part of the output and exchange it.
Exchange is a natural consequence of the principle of the division of labor. But what does this concept carry in its deepest understanding?
general information
So, exchange is a certain economic process, implying the transfer of benefits by one participant in economic activity to another. Goods mean material values, goods, services, information, even circumstances. The platform where the exchange takes place is usually called the market.
Main signs
Exchange relations are structured in such a way that at least two persons participate in the process - the giving and the receiving. Each person makes a deal in order to get what he wants, that is, pursues his own benefit. Exchange is a process in which the good changes its owner. In turn, the owner has the right to possession, disposal and use of the goods belonging to him.
The economic efficiency of the exchange is achieved only if the costs associated with them are less than the cost of the proposed good, whether it is a product or service. Efficiency at the same time depends on the time costs associated with the exchange. But this time could be spent on generating income or acquiring knowledge that would later lead you to the pinnacle of success. And this also needs to be taken into account.
Note: the creation of large retail chains and trade through online stores, which is a kind of exchange, can reduce costs, thereby increasing the efficiency of the operation.
rules
Exchange rules are an integral part of the transaction. To make it necessary to fulfill a number of conditions. First of all, each side should:
- have a certain good;
- be interested in an exchange;
- to be free to choose and independently decide whether to enter into economic relations or not;
- be able to deliver your product.
Types of exchange
Exchange is an economic phenomenon, presented in several varieties:
- Barter is a type of exchange with minimal efficiency. It implies a sharp increase in transaction costs. Most often, barter reaches its development in the context of the economic crisis, as it can occur in the absence of funds in the accounts of individuals and legal entities.
- Trade - a form of exchange, implying the emergence of a universal product (money). It is money that is accepted by all parties and participants in the transaction. Moreover, money can appear in all forms, and not only in the form of cash. So, for example, in the conditions of the modern economy, electronic money is very popular.
- Donation is a form of exchange that proceeds unilaterally. One side benefits in the form of the goods it needs, and the second - moral satisfaction from the transaction.