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Give a brief explanation on the term trade and development


Give a brief explanation on the term trade and development



Trade is the transfer the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade is sometimes loosely called commerce or financial transaction or barter.
Trade can be a key factor in economic development. The prudent use of trade can boost a country's development and create absolute gains for the trading partners involved. Trade has been touted as an important tool in the path to development.
Trade is widely accepted as an important engine of economic growth and development. There are many regions and countries of the world that have been able to lift their peoples from poverty to prosperity through trade. Although the African economy is characterized by a relatively high degree of openness, with the ratio of exports and imports to GDP amounting to 55.7% in 2009, trade has not served as a potent instrument for the achievement of rapid and sustainable economic growth and development for many of the countries.
As a consequence, Africa remains the most aid-dependent continent of the world, unable to eliminate poverty through trade.
francis1897 answered the question on January 12, 2023 at 13:11

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