Economic Exchange

Economic exchange refers to the transfer of goods, services, or resources between parties, typically involving some form of payment or value agreed upon by both. It occurs whenever individuals or organizations trade, whether through buying, selling, or trading services, to satisfy their needs or wants. This process facilitates specialization, efficiency, and wealth creation by allowing people to focus on what they do best and exchanging the surplus for what they need. In essence, economic exchange is the foundation of market activity, enabling the allocation of resources based on mutual agreement and value.