In three to four sentences, describe how legal contracts provide incentives for people to exchange goods and services.

In our modern society, many people are involved in the exchange of goods and services, and this is why the market is able to operate with such success. However, most people who do so are taking a risk, as there is always the chance of unfairness being involved in such exchanges. One of the ways in which people are able to decrease this risk is by creating legal contracts. Legal contracts establish what the responsibilities of each person are, as well as the punishments that will take place if either party breaks the contract.

the phoenicians, based on a narrow coastal strip of the levant, put their excellent seafaring skills to good use and created a network of colonies and trade centres across the ancient mediterranean. their major trade routes were by sea to the greek islands, across southern europe, down the atlantic coast of africa, and up to ancient britain. in addition, arabia and india were reached via the red sea, and vast areas of western asia were connected to the homeland via land routes where goods were transported by caravan. by the 9th century bce, the phoenicians had established themselves as one of the greatest trading powers in the ancient world.

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