Merchandise Write for Us
Merchandise is any object that can be traded or exchanged on the market. It characterises to satisfy some consumer need. That is, merchandise is any good that people can buy or sell. Thus, through this transaction, it seeks to cover demand.
We can remember, for example, that in Karl Marx’s theory, the value of a good depends on the socially necessary labour to produce it. In other words, the companies must calculate the average hours required to manufacture a particular item.
So let’s imagine that textile companies take, on average, five hours to make a dress. However, one of the companies in the market allocates around three hours for that same task. Such a firm, therefore, will need to spend less on working hour hiring and will earn higher profits than its competition.
Characteristics of the merchandise
Among the characteristics of the goods, the following stand out:
- Its manufacture has usually required several working hours of work.
- Its creation implies a cost for different concepts such as raw material, distribution, promotion, among others.
- Merchandise is the product of economic activity. That is the company or person that manufactures it seeks to obtain a profit from its sale.
- Logistics management is essential so that the merchandise reaches the final consumer in optimal conditions.
- Goods originally began to be exchanged through barter. However, later society realised that it was more efficient to use money as a medium of exchange.
- Continuing with the previous point, money itself is merchandise. For example, in the case when we need to pay foreign currency with the national currency. In this operation, the price of the product would be the exchange rate.
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