PLAN

INTRODUCTION2
I.

DEFINTION AND HISTORY OF TRADE.3

1) MEANING OF Trade...4
2) HISTORY OF Trade.4

II.

TYPES OF TRADE..5
1) INTERNAL TRADE5
a. Wholesale Tarde5
b. Retail Trade6
2) EXTERNAL TARDE6
a. Export Trade..7
b. Import Trade..7
c. Entrepot Trade7
3) E-COMMERCE.9
a. Definition and Types of E-commerce9
b. Advantages and disadvantages of E-commerce10
Trade IN MOROCCO...11
1) Domestic and foreign trade 11
2) Importation and exportation ...12

III.

CONCLUISON.13

INTRODUCTION

Basically Trade means exchange of goods, services, or both. Trade is also called
commerce Essential pillar of the country development strategies, is one of the main drives of
economic growth and poverty alleviation, especially in developing countries as being our
country Morocco
So what is the Trade and what is its place in the World
To answer these questions, we will be start by:
In the First Definition and meaning of Trade
Then, the Trade history
And the types of trade
Finally, Trade in Morocco.

I. DEFINTION AND HISTORY OF TRADE :

1) MEANING OF Trade
Starting from this strict definition of the term, to a broader definition we can say that the trade
refers to the economic activity of purchase, resale and exchange of goods and services.
It is also a natural extension of the activity of production of goods and services who can lead
to markets.
So we can say that the trade remains one of the oldest and most important inventions of
mankind.
Thats why this story is still a considerable part of the general history of civilization.

2)

HISTORY OF Trade

Trade originated in prehistoric times It was the main facility of prehistoric people who
bartered goods and services from each other when modern money was never thought of

The historical context will be divided into three periods namely:

* Antiquity
* Middle Ages
* The modern era

In antiquity, the maritime trade is more pronounced because of lower transport prices.
Economic exchanges take place essentially in a context of geographical neighborhood.
During this period the trade is routed barter, operation where by each participant transfers
ownership of property and receives another (well), the absence of circulating currency does
not prevent the use of unit of account.
in the middle ages, the Western Europe is organized and trade becomes important.
The movement of goods over the key at least long distance.

In terms of the modern period, the discovery of America, the exploitation of the colonies by
Europe, the development of relations with India is the high lights of the expansion of big
business.
In deed this historical passage points to the development of to take several forms.

II.

TYPES OF Trade

1) INTERNAL TARDE
It also known as home Trade. It is conducted with in the political and geographical boundaries
of a country.
It can be at local level, regional level or national level.
Internal Trade can be further subdivided into two groups:

a)

Wholesale Trade

Wholesalers play a major role in working of domestic trade. One could even say that it is the
backbone of the domestic market. A wholesaler is one is directly in contact with the
manufacturers but in indirect contact with the consumers. A wholesaler generally deals with
one type of industry.
A wholesaler is not only into selling of products as it is also involved
in packaging, advertising, grading, and market research. They have their own go downs which
saves the manufacturers from bothering about storage. They normally make cash payments
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from retailers and sometimes consumers themselves and give an advance payment which
benefits the manufacturers. They sell in smaller quantities to retailers, which refrains the
retailers from requiring storage space. They do allow credit facilities to retailers at times.

b) Retail Trade
A retailer is normally the final seller of a product. It makes its purchases made from
Wholesalers and sales are made to the customers directly. Retailers do not particularly have to
be from one industry i.e. they can trade in a variety of products at the same time. It generally
has purchases made by credit and sales made in cash. Sales as compared to wholesalers are
made in small quantities.

The importance of Internal Trade :

The importance of domestic trade in a country is that it facilitates exchange of goods within
the country. By doing this it also makes sure that factors of production reach to the right
places so that the economy of the country can grow.
By allowing all different types of goods and services to reach to all parts of the country it
improves the standard of living of the residents of the country as well as the employment
rate of the country. And it helps the growth of an industry by ensuring the availability of raw
materials.

2) External trade
You know that no country in the world possesses everything that is needed by its people.
So they all have to depend on others to meet their requirement of certain items.
For Example, a country may be rich in iron and steel but poor in aluminum. So it has to meet
its requirement of aluminum from countries with surplus production of aluminum. Not only
that, the countries having excess production of certain items find it beneficial to sell them to
some other countries and buy items in which they are deficient from others.
It is also observed that some countries attain specialization in production of certain products
by virtue of adopting advanced technology while others find it difficult or expensive to
produce it in their own country. They prefer to buy those products from the former. Thus,
uneven distribution of natural resources and specialization attained in production of certain
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items give rise to exchange of goods and services between different countries. Such exchange
is termed as External Trade. It is also known as Foreign Trade or International Trade.
On the basis of sale and purchase of goods and services, external trade can be divided into
three kinds. They are:

a) Export Trade
When the firm of a country sells goods to a firm of another country, it is called Export
trade. For example, the sale of iron and steel, tea, coffee, coal, etc. by Indian
companies to other countries is known as its export trade.

b) Import Trade
When the business firm of a country purchases goods from the firm of another
country, it is called Import trade. For example, when India Govt. purchases petroleum
products, electronic goods, gold, machineries, etc., from other countries it is termed as
import trade.

c) Entrepot Trade
When the firm of a country imports goods for the purpose of exporting the same to the
firms of some other country with or without making any change, it is known as
entrepot trade or re-export trade for that country. For example, if an Indian company
imports rubber from Thailand and exports it to Japan then it is called Entrepot trade
for India. Now you must be thinking, why India comes between Thailand and Japan.
Why doesnt Japan directly imports rubber from Thailand? Let us see what could be
the possible reasons for this.

The importance of external Trade

External Trade is an important indicator of economic condition of a nation. Both importing

and exporting countries are benefited by external trade. While exporting country earns more
foreign exchange by exporting its surplus, the importing country at the same time gets the
opportunity to use better products and raise the standard of living of its people.
Let us discuss in details about the importance of external trade.
Generates employment opportunities
External trade facilitates the growth of agricultural, commercial as well as industrial activities,
which in turn generates more and more employment opportunities for the people.
Economic growth
Economic growth of every country depends to a large extend on the volume of external trade.
If a country specializes in any product, it needs to produce more to meet the worldwide
demand. So by producing and exporting more goods and services it can accelerate the
economic growth of the country.
International relation
External trade brings the people of two different countries to come closer and to understand
the need and requirement of each other. They also participate in various trade and cultural
exhibitions. All these activities promote harmonious and cordial relationship among the
nations.
Price equalisation
External trade leads to equalisation of prices of goods and commodities in the world.
Whenever the prices of commodities tend to rise because of short supply it can be checked by
importing more goods. Similarly when the prices of products decline because of availability
of excessive item, the country may export that surplus to others.
Improves standard of living
On account of import trade, a country can consume goods, which it does not produce.
On the other hand, it earns foreign exchange through export trade. The import and export
trade thus, help in raising standard of living of a country.

III.

E-COMMERCE
1) DEFINTION AND TYPES OF E-COMMERCE

Also called electronic commerce means, The buying and selling of products and services by
businesses and consumers through an electronic medium, without using any paper documents.
E-commerce is widely considered the buying and selling of products over the internet, but
any transaction that is completed solely through electronic measures can be considered ecommerce.
E-commerce is subdivided into three categories:
Business to business or B2B:
A transaction that occurs between a company and another company, as opposed to a
transaction involving a consumer. The term may also describe a company that
provides goods or services for another company. For example (company Cisco)
Business to consumer or B2C:
A transaction that occurs between a company and a consumer, as opposed to a transaction
between companies (called B2B). The term may also describe a company that
provides goods or services for consumers.

For

example

(company

Amazon).

Consumer to consumer or C2C:

Is all trade in goods and services made directly between two or more consumers; this type of
e-commerce leads to lower costs and higher profits for buyers and sellers.

2) ADVANTAGES AND DISADVANTGES OF E-COMMERCE :

Advantages of e-commerce:
E-Commerce helps organization to reduce the cost to create process, distribute,
retrieve and manage the paper based information by digitizing the information.

 E-Commerce application provides user more options and quicker delivery of products.
E-Commerce increases competition among the organizations and as result
organizations provides substantial discounts to customers.
E-Commerce has enabled access to services and products to rural areas as well which
are otherwise not available to them.

Disadvantages of e-commerce:
There can be lack of system security, reliability or standards owing to poor
implementation of e-Commerce.
Sometimes, it becomes difficult to integrate E-Commerce software or website with the
existing application or databases.
Security/ Privacy: Difficult to ensure security or privacy on online transactions.
Lack of touch or feel of products during online shop

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IV.

TRADE IN MOROCCO
Trade sector is a pillar of paramount importance in Moroccan economy. Indeed, it is a
sector which contributes enormously to creating wealth, enhancing growth, and
creating jobs as well. It can be divided into two sub-sectors:

1) DOMESTIC AND FOREIGN TRADE

Domestic trade

Besides being an important driver of investment activities, domestic trade is largely

considered as chief among the animating factors of urban space. In fact, it does not only
influentially contribute to the organization and dynamics of cities space, but it also provides
further impetus for socio-economic development.
This trade sub- sector involves a wide variety of activities, which differ in their form,
organization, and level of integration. We, therefore, find what is known as traditional
business, franchised chops, malls, shopping centers, etc.
Domestic trade counts about 720000 points of sell distributed all over the country.
Examples include Marjane, Aswak Assalam, BIM, which is a giant Turkish Operator of hard
discount proximity.
At this point, it is significant to draw attention to the social dimension of domestic
trade since it constitutes the main source of income for more than one million person.

Foreign trade

Concerning foreign trade, Morocco seeks to consolidate its foreign trade relations.
Thus, it is increasingly interested in reducing tariff protection, abolishing quantitative
restrictions, simplifying procedures, and improving favorable environment for business and
investment. Indeed, Morocco recommends a policy of open trade.
Moroccan - Foreign Exchanges is a sector which is substantial to Moroccan economy.
From Geographical point of view, Europe is our countrys first client and supplier. Morocco,
however, is aiming at enlarging and diversifying the range of its exchanges. It is also planning
to find out other foreign exchange opportunities. The recent agreement of free exchange with
USA and Turkey hasnt come up yet with tangible effects.

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2) Importations and exportations

Importation is on the increase, it concerns essentially:
The importation of semi-products such as plastics and chemical products.
The purchase of industrial equipment goods.
The purchase of energetic goods such as petroleum, fuel oils.
The importation of consumer goods such as tourism vehicles, car parts,etc.
The importation of agricultural food products. This kind of importation has been
constantly increasing, especially cereals.
Moroccan exportations arent much diversified. They can be presented as follows:
The exportation of consumer goods. Clothing and textile products come first.
The exportation of semi-products: mainly phosphates and derivatives.
The exportation of agricultural food products, which consists mainly of selling olive

oil and citrus fruits.

The exportation of industrial equipment goods such as cables and electric wires.

Before ending this section, it important to mention that Morocco officially ratified GATT
(General Agreement on Tariffs and Trade) in 1987. It has also been a member of WTO
(World Trade Organization) since January 1952.

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Conclusion

To conclude, we deem it worthwhile to emphasize the fact

that trade is a complicated

issue. To discuss it exhaustively goes far beyond the scope of the present paper. We have,
however, tried to bring up certain points that we consider highly relevant to trade in both
Moroccan and international contexts.
We are certainly looking forward to having another opportunity

to highlight other

points that we havent had the chance to include in todays talk.

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