TRADE

GROUP DJS MEMBERS

Mubashir rashid (jojo) Taqi Ullah khan (taqi) Zia-ud-din (SSM) M.Yousaf Khan (saifee) M.Fahim khan (lee)

(36) (06) (35) (50) (42)

TRADE
Definition it implies an exchange of goods and services for money or moneys worth. Explanation:

Trade is the transfer of ownership of goods and services 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

TYPES OF TRADE
Trade can be divided into following two basic types
1.

Internal or Home or Domestic trade. External or Foreign or International trade

2.

INTERNAL/HOME /DOMESTIC TRADE

It is conducted within the political and geographical boundaries of a country. It can be at local level, regional level or national level Hence trade carried on among traders of Lahore, Karachi, etc. is called home trade.

Internal Trade me further sub-divide into two groups

1. 2.

Wholesale Trade Retail Trade

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. A wholesaler occupies prominent position since manufacturers as well as retailers both are dependent upon him. Wholesaler act as a intermediary between producers and retailers

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. There are different types of retailers small as well as large. Small scale retailers includes hawkers, pedlars, general shops, etc.

EXTERNAL TRADE
International trade is the exchange of capital, goods, and services across international borders or territories.

It refers to buying and selling between two or more countries. If Mr.X who is a trader from Karachi, sells his goods to Mr.Y another trader from New York then this is an example of foreign trade

EXTERNAL TRADE CAN BE FURTHER SUDIVIDED INTO THREE GROUPS,

Export Trade : When a trader from home country sells his goods to a trader located in another country, it is called export trade. Import Trade When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. Entrepot Trade : When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade. In brief, it can be also called as re-export of processed imported goods.

ADVANTAGES OF TRADE
Maximum use of natural resources Stability in prices Benefits to consumer Development of the means of communication and transport Ability to face natural calamites Discouragement to monopolies Employment opportunities International co-operation

DISADVANTAGES OF TRADE
Threat to infant industries Economic exploitation Endanger independence Misuse of natural resources Import of harmful goods World wars Trade and Tariff agreement

Business Jobs Wages/Salaries Taxes Government Programs Savings Capital Market Consumer Spending Demand

Business Loans
Business Loans
New/Expanded Business

Consumer Loans

BALANCE OF TRADE DEFINITION

The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time. A positive balance of trade is known as a trade surplus and consists of exporting more than is imported. A negative balance of trade is known as a trade deficit or, informally, a trade gap. If the current account is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position.

PAKISTAN BALANCE OF TRADE

Pakistan reported a trade deficit equivalent to 1428 Million USD in February of 2012. Pakistan exports rice, furniture, cotton fiber, cement, tiles, marble, textiles, clothing, leather goods, carpets and rugs and food products. Pakistan imports mainly petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel and tea. Its main trading partners are: European Union, China, The United Arab Emirates and The United States.

MAJOR EXPORTS OF PAKISTAN

We have successfully dealt with export of the following items from Pakistan and the list is growing all the time: Textile Yarn & Fabrics Articles of Apparel and Cloth Accessories Footwear Leather and Leather Products Guar Meal, Guar Gum and Guar Protein Extracts Surgical Instruments Fruit Arts Resins and Plastic Material Chemical Material Refractory Cements Mortars Electric Machinery and Appliances Refractory Blocks and Tiles Viscose Fiber (Rayon Fiber) Sports Goods

FORBIDDEN EXPORTS FROM PAKISTAN

Items that are Forbidden for Export from Pakistan Dangerous goods as defined by IATA Live animals Human body parts Explosives Money Liquor Passports Antiques Gold Counterfeit products Used goods

MAJOR IMPORTS OF PAKISTAN

1. Machinery. 2. Petroleum. 3. Chemicals. 4. Vehicles and spare parts. 5. Edible Oil. 6. Wheat. 7. Tea. 8. Fertilizers. 9. Plastic material. 10. Paper Board 11. Iron ore and steel. 12. Pharmaceutical products.

WHY NATION DO FORIEGN TRADE

Essentially, International trade exists to expand the range of available goods and services for participating countries. In the 21st century this is just about everyone and for those who did not join the game willingly, they are dragged into it . For us, it is easy to see the benefits in international trade. If, for example, I was capable only of consuming goods produced in the US I would be deprived of any number goods and services from your own countries. Without trade relations with the US, we can imagine how devastated we would all be in a world deprived of Mcdonalds, nuclear weapons, and Justin Beiber,

PAKISTAN IMPORT AND EXPORT

Primary export partners: US (15.87 percent of total valor of exports), UAE (12.35 percent), Afghanistan (8.48 percent), UK (4.7 percent), China (4.44 percent). Total value of imports: US$32.71 billion Primary imports - commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea Primary import partners: China (15.35 percent of total imports), Saudi Arabia (10.54 percent), UAE (9.8 percent), US (4.81 percent), Kuwait (4.73 percent), Malaysia (4.43 percent), India (4.02 percent).

PAK TRADE AGREEMENTS

Pak-Afghanistan Trade Agreement Agreement on South Asian Free Trade Area Pak-Malaysia Trade Agreements Pak-China Trade Agreements Pak-Sri Lanka Free Trade Agreement

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