It was an unlikely Eureka moment for me today, after my first visit to Tata Steel. Watching Steel being prepared from scratch and following the lifecycle of a bar of steel was eye-opening to say the least. Steel is a primary mover of industrial growth for any nation. Name an application and chances are steel was used in the making either directly or indirectly.
So I've been wondering....steel is a raw material that's used to produce other goods. And what are these products? To name a few.... automobiles, machine parts, pipes, air-conditioners, construction materials.... the list is literally endless. Now, it's not difficult to see that among the consumers of these articles are industries and among industries....well, steel plants themselves.
So steel plants use a lot of steel ; in the form of finished products that required the use of steel as a raw material in the first place! For eg. employees in steel plants use vehicles--which are made of steel (among other materials)...... the steel making process involves the use of heavy machinery, piping and construction equipment....all of which involve the use of steel.
It' a viruous cycle. People live in townships, cities, villages......all settlements are based upon the use of a large number and variety of goods. And if you observe carefully, all we're doing as a "global civilization" is fulfilling each others' endless needs. What this essentially means is that we're indirectly engaging in...barter!
So millennia have flown by but the cornerstone of commerce, the very founding principles, reasons and motives of trade continue to remain the same. You make me some steel, I'll use it to make you a car that'll help you to commute to your steel plant, Mr. X in the next city will take care of garment manufacturing, Mr. Y will grow us some food, while Mr. Z will build all of our homes....
That's how complicated trade is. One significant change in the nature of trade since its inception is the fact that services have probably dominated products in importance over the last century. After all our needs stretch beyond the material. So where does trade and commerce go from here and what role does steel have to play in the journey? I guess we'll have to wait to find out...
So millennia have flown by but the cornerstone of commerce, the very founding principles, reasons and motives of trade continue to remain the same. You make me some steel, I'll use it to make you a car that'll help you to commute to your steel plant, Mr. X in the next city will take care of garment manufacturing, Mr. Y will grow us some food, while Mr. Z will build all of our homes....
That's how complicated trade is. One significant change in the nature of trade since its inception is the fact that services have probably dominated products in importance over the last century. After all our needs stretch beyond the material. So where does trade and commerce go from here and what role does steel have to play in the journey? I guess we'll have to wait to find out...
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