Trade

Trade also called goods exchange economy is the transfer of ownership of goods from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles[clarification needed], coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Trade exists for man due to specialization and division of labor, in which most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations. Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Wholesale trade is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.[2] Trading can also refer to the action performed by traders and other market agents in the financial markets.

The Definition of Trade Economics

Trade economics studies patterns of commerce and their effects.

Trade economics is a study of the structure of international financial interactions. In addition to investigating trade, the field of study also concerns the effect of these interactions upon consumption and labor within trading partners.
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Definition of Economic Terms

1. The Structure of Trade

Trade economics primarily studies how economic partners interact with each other while exchanging commodities. Included in this analysis is the role played by the quantity of commodities belonging to each partner and the effects of protectionist measures such as tariffs.

The Effects of Trade

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Trade economics also studies the effect of international trade upon the markets within individual countries; this includes the increasing globalization of products and services. Specific objects of study include unemployment and manufacturing rates, as well as the availability of labor.

Goals
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While some economists approach international trade from a purely theoretical point of view, many see the discipline as a way of alleviating the problems that have resulted from the international economy. The latter seek to create economic statutes that would optimize the use of labor and profit within a multinational system of trade.

economic development
Process whereby simple, low-income national economies are transformed into modern industrial economies. Theories of economic developmentthe evolution of poor countries dependent on agriculture or resource extraction into prosperous countries with diversified economiesare of critical importance to Third World nations. Economic development projects have typically involved large capital investments in infrastructure (roads, irrigation networks, etc.), industry, education, and financial institutions. More recently, the realization that creating capital-intensive industrial sectors provides only limited employment and can disrupt the rest of the economy has led to smaller-scale economic development programs that aim to utilize the specific resources and natural advantages of developing countries and to avoid disruption of their social and economic structures. See also economic growth. Agricultural Economy Any local or national economy heavily dependent on agriculture. Most jobs in an agricultural economy are rooted in farming and ranching, at least tangentially. For example, even if one does not farm, one may make a living selling tractors and other farm equipment. Agricultural economies are often in very rural areas. How well such an economy performs may depend heavily on exogenous factors like the weather. Agricultural economics originally applied the principles of economics to the production of crops and livestock a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem. Throughout the 20th century the discipline expanded and the

current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics.[1][2][3]

Origins [edit]
Economics is the study of resource allocation under scarcity. Agronomics, or the application of economic methods to optimizing the decisions made by agricultural producers, grew to prominence around the turn of the 20th century. The field of agricultural economics can be traced out to works on land economics. Henry Charles Taylor was the greatest contributor with the establishment of the Department of Agricultural Economics at Wisconsin in 1909. [4] Another contributor, Theodore Schultz was among the first to examine development economics as a problem related directly to agriculture.[5] Schultz was also instrumental in establishing econometrics as a tool for use in analyzing agricultural economics empirically; he noted in his landmark 1956 article that agricultural supply analysis is rooted in "shifting sand," implying that it was and is simply not being done correctly.[6]

Development [edit]
One scholar summarizes the development of agricultural economics as follows: "Agricultural economics arose in the late 19th century, combined the theory of the firm with marketing and organization theory, and developed throughout the 20th century largely as an empirical branch of general economics. The discipline was closely linked to empirical applications of mathematical statistics and made early and significant contributions to econometric methods. In the 1960s and afterwards, as agricultural sectors in the OECD countries contracted, agricultural economists were drawn to the development problems of poor countries, to the trade and macroeconomic policy implications of agriculture in rich countries, and to a variety of production, consumption, and environmental and resource problems."[7] Agricultural economists have made many well-known contributions to the economics field with such models as the cobweb model,[8] hedonic regression pricing models,[9] new technology and diffusion models (Zvi Griliches),[10] multifactor productivity and efficiency theory and measurement,[11][12] and the random coefficients regression.[13] The farm sector is frequently cited as a prime example of the perfect competition economic paradigm. Since the 1970s, agricultural economics has primarily focused on seven main topics, according to a scholar in the field: agricultural environment and resources; risk and uncertainty; consumption and food supply chains; prices and incomes; market structures; trade and development; and technical change and human capital; .[14] In Asia, agricultural economics was offered first by the University of the Philippines Department of Agricultural Economics in 1919. Today, the field of agricultural economics has transformed

into a more integrative discipline which covers farm management and production economics, rural finance and institutions, agricultural marketing and prices, agricultural policy and development, food and nutrition economics, and environmental and natural resource economics. In terms of technical change, there have been increasingly rapid developments and innovations in the equipment designed for agricultural research. This equipment includes instruments for plant physiology research, and monitoring soil conditions and atmospheres.

agricultural economics
Definition: An applied social science that deals with the production, distribution, and consumption of agricultural or farming goods and services. (Source: AGP) broader terms economy narrower terms agronomic value land value related terms economics Scope note: scope note is not available Groups: ECONOMICS, FINANC What are the key objectives of corporate governance? 1. Reducing conflicts of interest, especially between managers and stockholders. 2. Verifying that the firms assets are used efficiently and productively and in the shareholders best interest. Core attributes of an effective corporate governance system include: 3. A clear delineation of shareholder rights. 4. An outline of manager and director responsibilities to shareholders. 5. Clearly defined standards against which performance of responsibilities can be measured. 6. Fair and equitable treatment in relationships between managers, directors and shareholders. 7. Accuracy and transparency in disclosures regarding operations, performance, risk and financial position. Concept and Objectives Corporate Governance may be defined as a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders. It is the system by which companies are directed and controlled. It is about promoting corporate fairness, transparency and

accountability. In other words, 'good corporate governance' is simply 'good business'. It ensures:

Adequate disclosures and effective decision making to achieve corporate objectives; Transparency in business transactions; Statutory and legal compliances; Protection of shareholder interests; Commitment to values and ethical conduct of business.

In other words, corporate governance is the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It deals with conducting the affairs of a company such that there is fairness to all stakeholders and that its actions benefit the greatest number of stakeholders. In this regard, the management needs to prevent asymmetry of benefits between various sections of shareholders, especially between the owner-managers and the rest of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company. Ethical dilemmas arise from conflicting interests of the parties involved. In this regard, managers make decisions based on a set of principles influenced by the values, context and culture of the organization. Ethical leadership is good for business as the organization is seen to conduct its business in line with the expectations of all stakeholders. The aim of "Good Corporate Governance" is to ensure commitment of the board in managing the company in a transparent manner for maximizing long-term value of the company for its shareholders and all other partners. It integrates all the participants involved in a process, which is economic, and at the same time social. The fundamental objective of corporate governance is to enhance shareholders' value and protect the interests of other stakeholders by improving the corporate performance and accountability. Hence it harmonizes the need for a company to strike a balance at all times between the need to enhance shareholders' wealth whilst not in any way being detrimental to the interests of the other stakeholders in the company. Further, its objective is to generate an environment of trust and confidence amongst those having competing and conflicting interests. It is integral to the very existence of a company and strengthens investor's confidence by ensuring company's commitment to higher growth and profits. Broadly, it seeks to achieve the following objectives:

A properly structured board capable of taking independent and objective decisions is in place at the helm of affairs; The board is balance as regards the representation of adequate number of non-executive and independent directors who will take care of their interests and well-being of all the stakeholders; The board adopts transparent procedures and practices and arrives at decisions on the strength of adequate information; The board has an effective machinery to subserve the concerns of stakeholders;

The board keeps the shareholders informed of relevant developments impacting the company; The board effectively and regularly monitors the functioning of the management team; The board remains in effective control of the affairs of the company at all times.

The overall endeavour of the board should be to take the organisation forward so as to maximize long term value and shareholders' wealth.