Exchange is ... Concept, rules

Surely you have at least once in your life exchanged with someone benefits, objects of personal use. But what is the meaning of the term itself in the economy? This is what we will try to understand more thoroughly.

A bit of history

Economy, based on the division of labor, sooner or later begins to demand the creation of a special mechanism for mutual provision of goods and resources, as a result of which the producer could give part of the goods produced by him, having received in exchange the missing components. Without such a mechanism, the principle of the division of labor would be meaningless, it would simply stop working. After all, mutual interest is achieved only on the condition that the producer, through division of labor, manages to increase its productivity, and consequently, it is easy to release a certain part of the produced products and exchange it.

Exchange is a natural consequence of the principle of the division of labor. But what does this concept carry in its deep understanding?

general information

So, exchange is a certain economic process, implying the transfer of benefits by one participant in economic activity to another. Under the benefits meant material values, goods, services, information, even circumstances. The site where the exchange takes place is usually called the market.

Main features

The exchange relations are constructed in such a way that at least two persons participate in the process - the giving and receiving. Each person makes a transaction in order to get what he wants, that is, he pursues his own profit. Exchange is a process in which the good changes its owner. In turn, the owner has the right to own, dispose and use the good that belongs to him.

Economic efficiency of 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 a service. Efficiency at the same time depends on the time costs associated with the exchange. But this time could be spent on obtaining income or gaining knowledge, which in future would lead you to the top of success. And this must also be taken into account.

To the note: the creation of large retail chains and trade through online stores, which is a kind of exchange, allows to reduce the amount of costs, thereby increasing the efficiency of the operation.

rules

Exchange rules are an integral part of the transaction. To fulfill it, it is necessary to fulfill a number of conditions. First of all, each side must:

• Have a certain good;
• Be interested in exchanging;
• Be free in the choice and decide independently, enter into economic relations or not;
• Be able to deliver your product.

Types of exchange

Exchange is an economic phenomenon, represented 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 conditions of the economic crisis, since it can also 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 commodity (money). It is money that is accepted by all parties and participants in the transaction. Thus money can act in all forms, and not only in the form of cash. So, for example, in the modern economy, electronic money is very popular.
• Gifting is a form of exchange, proceeding unilaterally. One side benefits in the form of the necessary goods, and the second - the moral satisfaction of the transaction.