Trade
Topic: Globalisation and MNCs · NCERT: Class 7, Ch 12 "Understanding Markets"
Meaning
Trade means buying, selling or exchanging goods and services. It can happen between people inside one country, or between countries. Trade between countries is called foreign trade. Until the mid-20th century, trade was the main thing linking distant countries: raw materials, food and finished goods moved across borders, but production mostly stayed inside each country.
Example
Old trade routes linked India and South Asia to markets in the East and the West. Trading interests are what drew the East India Company to India. In colonial times India exported raw materials and food and imported finished goods.
Don't confuse with
- Foreign investment: money that MNCs put into assets such as land, buildings and machines in another country. Trade moves goods and services and joins markets. Investment moves capital and joins production.