At the threshold of globalization and liberalization era, the term ‘Trade’ connotes multilevel commercial exchanges of goods and services. Trade is synonymous with commerce or business. It was initially known as barter system, simply means exchange of goods. With the advancement of civilization trading practice has attained complexity and new forms of trade originated.

Beginning of Trade Practice:
Trading practice exists in our society since the dawn of civilization. Barter system is the original form of trade and commerce. Under barter system people used to exchange goods and services to fulfill their basic needs. Gradually a common place for exchange of commodities was devised which is termed as market. The people associated with market referred as buyers and sellers. Latter on the dimension of market keeps on flourishing at an accelerated pace to satisfy the multiple demands of growing population. Even Sumerians of Mesopotamia civilization had established trade relationship with the Harappan civilization of the Indus Valley in 3rd millennium BC. Europeans had also established colonies across the world on the basis of trade practices.

Factors:
Trade practices originated because of various socio-economic factors. The expanding human wants specialization of work patterns, division of labor and wide horizon of social relationships are primarily responsible for the onset of trade practice. As the lifestyle advanced towards more dynamic way, the trade practice has attained its specialized format.

Types:
Initially trade practice was in simple form and basically it was in the form of barter system. With the introduction of division of labor trade practices become more specialized and diversified in nature. When a business took place in between two parties, that is called bilateral trade and in case of involvement of more than two parties, multilateral trade took place.

Trade in globalization era:
Trade practices in a globalization era denote very specific definition. It is systematically more complex than the trade activities of pre-industrialization period. To facilitate multilateral trade affairs various international agencies such as UN, WTO are administering trade agreements and regulations among the global parties. Various international laws are also governing the smooth functioning of global trade practices.

Trade plays a significant role in the development of any nation. Without such activities the sustenance of an economy is totally impossible.