Maharashtra Board Class 9 Geography Chapter 9 Trade PDF Download

Trade

Trade is an important economic activity. The economic life of people is interdependent. No region or country is self-sufficient. Trade between two regions is necessary to fulfil the needs of the people. As each region has different geographical conditions, each region produces specific commodities.

If there is a paucity of a commodity, then there is demand for that commodity. The place where it is abundant provides the supply of the commodity. Thus, supply is done from regions producing excess commodities to region facing deficit according to the demand. For example, apples produced in Jammu and Kashmir are sent to other states of India having a demand for it.

Try This

Obtain the following information.

Make a list of commodities which you use daily

Who uses these commodities?

Write the source of the supplies of these commodities.

From where do you buy these commodities?

What do you call the act of buying and selling?

What does the shopkeeper take in lieu of the commodity?

From where do these commodities come to the market, from where have you bought them and what is their main source? Obtain this information and write it against the commodities in the list. Hold a discussion in the class about the obtained information.

You gets products from other places. Similarly, find out where the special products/items made in your village/city are sent?

Geographical Explanation

We have various needs in our day-to-day life. We buy various things to satisfy these wants. When we buy them we create a demand for them.

To fulfil the demand for these products, the production of these goods is carried out. The producer supplies these goods. In other words he sells them to wholesale trader.

Thus, the buying and selling of goods is done to fulfil each others' needs. These who purchase are the consumers of the goods. The producer produces and the sellers sell the goods. Buyers and sellers buy and sell the goods, respectively. This is called trade.

On the basis of the information obtained above, you will realise that we buy the goods we need from the shops, markets or malls around us. Generally, the sellers of these goods are not the manufacturers of the goods. They bring these commodities from somewhere. It is not necessary that these commodities are manufactured in our surroundings. They are manufactured at places very far away. They could be first brought by retail sellers from wholesale market, factories, agricultural product market committees, etc. and then they reach us.

Teacher's Note

Trade happens every day in your city. For example, your local shopkeeper buys vegetables from the market and sells them to you.

Exam Trick

Remember: Trade = buying and selling. Like you buy books from a shop, that is trade.

Points to Remember

Trade is buying and selling of goods and services.
No country can make everything it needs.
Each region produces things based on its climate and resources.
Supply comes from places with extra goods to places that need them.
Trade helps people get things they cannot make themselves.

Trade involves selling and buying of goods. But do you know that trade can also take place without goods.

We get vegetables from the vegetable vendor when we pay him money

We get books for which we pay money

When we travel by a vehicle, we pay the fare. Do we get any commodity from it?

We have to give remuneration in lieu of the advice we take from lawyers/doctors.

Can You Tell?

Do you know? Do we get any commodity from them?

Why do you pay the ticket for a movie and then go inside the theatre?

You pay cash /money for getting your hair cut. Why?

Geographical Explanation

In the above instances, when there is buying and selling of goods, it is called visible trade. On the other hand, when there is an exchange of services, it is called invisible trade.

Teacher's Note

When you buy vegetables from a vendor, that is visible trade. When you pay a doctor to check you, that is invisible trade.

Exam Trick

Remember: Visible = you can see the thing (like apples). Invisible = you cannot see the thing (like a haircut service).

Points to Remember

Visible trade means buying and selling things you can see and touch.
Invisible trade means paying for services like doctors, teachers, and haircuts.
Both visible and invisible trade are important in our economy.
Services have value even though you cannot hold them.
Money is exchanged in both types of trade.

Do You Know?

Trade is an age-old concept. In ancient and medieval periods, trade was done through the barter system. In this there was an exchange of goods with other goods. Grains were exchanged in lieu of work done or oil, salt, honey and milk were exchanged for grains. There was no currency used in this trade. Even today we see traders who exchange utensils in lieu of old clothes but this creates problems of estimating a proper price of commodities. Earlier too such problems were encountered. As a result, the use of currency started. Today, in this modern age, trade is carried out with the help of currency only but barter system is still prevalent to a small extent in remote areas amongst the tribal people.

Geographical Explanation

Barter system means trading one thing for another without using money. For example, giving rice in exchange for salt. In modern times, we use money instead of barter. But in some remote areas, tribal people still use the barter system.

Teacher's Note

Long ago, people did not have money. They exchanged things they made for things they needed. For example, a farmer might give rice to a potter and get pots in return.

Exam Trick

Remember: Barter = no money, just exchange things. Like trading your toy for your friend's toy.

Points to Remember

In ancient times, people used barter system for trade.
Barter means exchanging goods without using money.
Barter system had problems because it was hard to decide fair prices.
Money was invented to solve the problems of barter.
Today most countries use money, but some remote areas still use barter.

According To The Quantity Of Goods

Depending on the quantity of goods, there are two types of trade: wholesale and retail.

Wholesale trade: Traders buy commodities on a large scale directly brought from the producers. The commodities are also sold on a large scale to retail traders. This is called wholesale trading. Wholesale traders buy goods on a large scale from industrialists, farmers, etc. For example, the orchard owners of mangoes or oranges sell their entire production to wholesale traders.

Retail trade: When the traders buy goods from wholesale traders and sell it directly to consumers, then it is known as retail trading. The quantity of goods sold is less in this case. For example, the shopkeepers selling goods, vegetable vendors in markets, etc.

Teacher's Note

Wholesale traders buy in big quantities from farmers. Retail traders buy from wholesale traders and sell small amounts to you in your local shop.

Exam Trick

Remember: Wholesale = large amount. Retail = small amount. Your local shop is retail trade.

Points to Remember

Wholesale traders buy goods in large quantities from producers.
Wholesale traders sell large quantities to retail traders.
Retail traders buy from wholesale traders in smaller amounts.
Retail traders sell directly to customers like you.
Your neighborhood shop is an example of retail trade.

According To The Extent Of Region

The buying and selling of goods happens at various levels. On that basis, trade can be divided into local, regional, national and international trade.

Domestic trade (internal trade): This trade takes place between different regions within the same country. The size of the country, diversity, distribution and availability of natural resources affect the internal trade within the country. The size of population, transport and communication services, the living standard of the people, marketing system lead to large-scale internal trade. In India, factors like diversity in geographical conditions and high population also affect the domestic trade. A country's development is dependent on the extent of the domestic trade. If there is a good economic growth, then trade will also be more. Thus, there is a positive relation between economic growth and trade.

International Trade: International trade means the exchange of goods and services of one country with other countries. Some countries produce specific products in excess, for example, crude oil in Saudi Arabia, Kuwait and wheat production in the USA, Canada, etc. These products are sent to countries having demand for those goods. This leads to the beginning of international trade.

When international trade takes place between two countries it is bilateral trade. When it occurs between more than two countries it is called multilateral trade.

Export and Import: Export and import are the basic processes of international trade. When a country buys those goods and services which are scarce in their own country from another country, it is known as import. When a country produces excess goods or services than required, it sells these to countries which have a demand for it. This is called export.

Teacher's Note

India exports tea and cotton to other countries. India imports oil from the Middle East because we do not have enough oil.

Exam Trick

Remember: Export = our country sends out. Import = other country sends to us. India exports rice, imports oil.

Points to Remember

Domestic trade happens between different regions of the same country.
International trade happens between different countries.
Export means selling to other countries.
Import means buying from other countries.
Bilateral trade is between two countries, multilateral is between many countries.

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