Assignment-1,Hemant kumar  roll no. 1273554. Qus. 32 can trade help poor?

Introduction

What is Trade?

Trade refers to buying and selling of goods and services for money or money's worth. It involves transfer or exchange of goods and services for money or money's worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer.

Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of earning profit; it also provides service to the consumers. Trade is an important social activity because the society needs uninterrupted supply of goods forever increasing and ever changing but never ending human wants. Trade has taken birth with the beginning of human life and shall continue as long as human life exists on the earth. It enhances the standard of living of consumers. Thus we can say that trade is a very important social activity.

Different Types of Trade

1. Internal Trade

1. Wholesale Trade: It involves buying in large quantities from producers or manufacturers and selling in lots to retailers for resale to consumers. The wholesaler is a link between manufacturer and retailer
2. Retail Trade: It involves buying in smaller lots from the wholesalers and selling in very small quantities to the consumers for personal use. The retailer is the last link in the chain of distribution. He establishes a link between wholesalers and consumers.

2. External Trade

1. Export Trade: When a trader from home country sells his goods to a trader located in another country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in China.
2. Import Trade: When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. For e.g. a trader from India purchase goods from a trader located in China.

Trade, also called goods exchange economy, is to transfer the ownership of goods from one person or entity to another by getting something in exchange from the buyer.

Poverty in India:
Poverty is a condition in which people do not have the means to afford basic human needs such as nutrition, health care, education, food, clothing and shelter. Poverty is one of the biggest problems that our country is facing today. In spite of all the progress that India has made during the years, the problem of poverty has not been eliminated. Still a great segment of our country is living below poverty line. Even after 62 years of independence from the British rule, large scale poverty remains the most shameful blot on the face of India. The most distressing feature of our social system is that we have at present, great disparities in incomes and lifestyles, on one hand we have millionaires and billionaires, on the other hand, we have teeming millions who cannot make both ends meet and a weak economic condition and with the rising prices of essential commodities, their incomes are further shrinking. One of the biggest reasons regarding poverty is illiteracy. World has moved fast during the last some years but still illiterates are unable to keep pace with the world as they are not able to find jobs. Even if they are able to find one, it’s not enough to enable them to earn enough for themselves and for their families; they are not able to end the hunger of their children. They have to lead a marginal and miserable life. They are economically weak. Corruption is also a factor up to some extent for the growing poverty. Some rural people are superstitious, they do not allow their children to learn new art and services. This is all because of ignorance and lack of knowledge and education. Eliminating poverty is the strongest need of the time. There is an urgent need to end poverty and find all the possible solutions to eradicate poverty and hunger otherwise; it will weaken the strong pillar of our country.
Causes of Poverty in India:
Illiteracy.
Ignorance.
Unemployment or Underemployment.
High population growth rate.

Discussion

 Trade- a business of buying and selling. It doesn't require a very big knowledge of Science, Maths or English, it just require some money, some knowledge and a little bit alert with some responsibility. A higher class person having good sum of money can collect degrees and move towards a private or public job, but what about a poor man? A high class person can start his own business with his money but how do a poor person will manage? But trade is the solution by which a poor can also pull his life to some better position. Trade doesn't follow the caste, community, creed and the cult it just require the required money and the responsibility of the businessman. India is a country full of many traders specially lower class traders are there earning their livelihood by trade only. Agricultural sector, milk, dhabas, pheriwalas etc are the small trading. Whether these sectors are not making their life so luxurious but at least they can feed their families. Even these sectors are helping the GDP of the country also. Government is also trying to evaluate these sectors with the developmental plans. Trading is the easiest way to the poor people for their livelihood. There are many examples there about the tycoons who were first poor but with these basic trade sectors they earned a high luxurious life. So, this way trading is the prominent way for poor.

Conclusion

I would like to express my views on this topic. Yes. Trade really help poors to improve their conditions because they get good prices of their goods through trading. It is a good way through which they can commercialize their product well because in their area. All the people of their standard were there which can't give the appropriate price for their product but through trading they can get good amount which increase their income and in return help to increase demand of their Product.