Handelstheorie

Handelstheorie is an economic theory that deals with the concept of middleman economy, also known as merchant economy. It was developed by German economist Wilhelm Roscher in the 19th century. The theory focuses on the role of intermediaries, such as merchants and traders, in facilitating transactions between producers and consumers.

According to Handelstheorie, the middleman plays a crucial role in bridging the gap between supply and demand by providing a link between the two. The middleman acquires goods from producers at a lower price and then sells them to consumers at a higher price, earning a profit in the process. This profit is considered an essential component of the middleman's income, enabling them to invest in various economic activities.

Handelstheorie emphasizes the importance of the middleman in facilitating economic growth by increasing the efficiency and effectiveness of trade. The theory highlights the role of merchants and traders in creating a network of exchange that connects producers and consumers. This network enables the specialization of labor, the division of work, and the emergence of new industries, leading to economic development.

The Handelstheorie also focuses on the concept of merchant capital, which is considered a key factor in economic development. Merchant capital refers to the financial resources and expertise provided by merchants and traders, which enable them to invest in various economic activities and create new opportunities for growth.

Overall, Handelstheorie provides a comprehensive understanding of the role of the middleman in the economy, highlighting the importance of merchants and traders in facilitating economic growth and development.