Trust in Economic Transactions

Trust in economic transactions refers to the confidence that parties have in each other to fulfill their promises and obligations. When buying goods or services, trust ensures that the seller will deliver and that the buyer will pay. This trust reduces uncertainty and fosters cooperation, enabling smoother trade. Without trust, transactions may become complicated, leading to fears of fraud or unmet expectations, which can hinder economic growth. Strong institutions, regulations, and positive reputations help build and maintain this trust, which is essential for a healthy economy.