Question

What is the exchange of goods and services in a market ?

Productivity

Trade

Tariff

Developing country

Answer 1

The exchange of goods and services in a market is referred to as trade. Trade involves the buying and selling of products or services between individuals, businesses, or countries. It allows for the movement of goods and services from areas with a surplus to areas with a demand, facilitating economic growth and specialization. Trade may take place through various means, such as bartering, traditional markets, or modern digital platforms. Tariffs, on the other hand, are taxes imposed on imported goods and services, which can affect trade dynamics by influencing the cost and availability of products. Developing countries are typically characterized by their lower socio-economic development level compared to more industrialized nations and often have a significant reliance on trade for economic growth and development.