Meaning and types of trade, Categories of domestic trade and categories of retailers
TRADE- Buying and selling or exchange of goods and services.- Before the invention of money, communities exchanged goods for goods, a transaction known as Barter Trade.- Cultivators exchanged their surplus grain forlivestock from the pastoralists.Types of Trade.- They include:(A). Domestic/ Internal/ Home/ Local trade.(B). Regional Trade.(C). International Trade.(A). Domestic/ Internal/ Home/ Local trade.- Buying and selling of goods within a country’s borders.- Goods can either be produced locally or imported.- It is classified into:1. Wholesale Trade - Purchasing of goods in bulkfrom producers and selling them to retailers.- They operate from large premises where they stock their bulk purchase.- They are mainly found in urban areas.2. Retail Trade – Buying goods from wholesalers and selling them to individual consumers.- Retailers stock variety of goods to sell to consumers, are basically small-scale traders.Categories of Retailers.1. Shopkeepers – Operate small shops from where they sell goods in prices set out by the producer.2. Hawkers – Retailers who move from place to place with their merchandise.- They sell their goods on streets, from house to house or from one market centre to another.3. Kiosk Operators – Put up temporary structures from where they sell their wares.- Majority of the kiosk operators deal with light goods.4. Departmental Stores – Large retail organizations that sell specific goods with several branches of the organization in one town selling different goods.5. Multiple Stores – Are similar to departmental stores, but they deal with a specific item orassortment of goods in their shops.- They operate several branches of their shops in the large towns like Nairobi and Mombasa.6. Supermarkets – Large retail shops that stock a variety of items, usually household goods and sell them at a price lower than in the retail shops.- They are normally “self-service”.- The self service system is advantageous to the management as it employs fewer shop attendants.