Understanding Trade and Distribution Channels in Spain
Tema 8: Trade and Commerce
1.1 Trade: Production and Consumption Exchange
Increasing the volume of production and consumption implies a very active exchange of goods and services. This exchange is called trade. Specific markets exist where products are exposed, alongside abstract markets like stock exchanges.
Notes on Modern Trade: Today’s trade is complex, characterized by strong demand concentration, increasing specialization, trading of diverse products, global activity, and the creation of specialized studies.
1.2 Growing Commercial Industry
Trade within a country increases as its development grows, facilitated by new communication and information technologies.
2.1 Marketing Channels
Domestic trade in Spain is characterized by duality. Commercial distribution channels through marketing generate approximately 10% of added value and 16% of total employment, representing about 3 million jobs.
Distribution Channels for Goods
Equipment Goods: These do not typically require intermediaries as industrial facilities, heavy machinery, electrical equipment, and heavy vehicles are produced to order. The market offers leasing of machinery, where rental income is paid with the possibility of purchase, and renting, which includes maintenance and insurance but without a purchase option.
Consumption Goods: Fresh food requires rapid commercialization. Generally, the reduced size of operations means there isn’t a long chain of intermediaries.
2.2 Distribution of Land in Domestic Trade
Trade is predominantly located in urban neighborhoods, in prime locations with good connectivity, high population density, and higher per capita income.
3.1 International Trade
Spain is integrated into the European Union trading bloc, the largest in the world. Trade occurs with other EU countries, with significant partners including Germany, France, and Italy.
3.2 The Balance of Payments
- Current Account Balance: Accounts for incomes and payments related to trade in services.
- Capital Account Balance: Includes capital transfers, both private and public, within the European Union.
- Financial Account Balance: Registers direct investment, financial investment, and the reserves of national banks.
3.3 The Current Account Balance in Spain
- Balance of Trade: Records imports and exports.
- Balance of Services: Includes tourism, travel, and insurance.
- Balance of Income: Records earnings or profits from capital and labor.
- Balance of Transfers: Accounts for remittances from immigrants, grants, and aid.
4.1 The Functions of Transport
Transport fulfills three important functions:
- It provides a service that meets the need or desire for people to travel, leading to intense traffic during peak times.
- It meets economic needs by bringing production into contact with the market and enabling the distribution of goods and services.
- It contributes to integrating different social groups and disseminating ideas.
(EN Topic 7) Tourism
Tourism can be categorized in various ways: national/international, mass (via tourist agencies) and social (subsidized), summer/winter, urban/cultural, and thermal/adventure. It encompasses numerous activities and services, involving both small businesses and multinational corporations.
Reasons for tourism include escaping noise pollution, seeking quiet environments, and experiencing different climates. Initially, tourism was primarily for wealthy families, but it has evolved with advancements in transport and destinations.