Commerce:
It includes all those activities, which are related to the transfer of goods from the place of production to the final consumers, at the right time, at the right place, in the right quantity and at the right price. Commerce can be divided into two parts.
Those are trade and aids to trade.
Trade:
Trade means exchange of goods between individuals and groups for money. Trade is of two types.
Home Trade or Internal Trade:
Trade within the borders of the country is known as home or internal trade. Home trade is of two types.
Purchase of goods in large quantities from producers and their sale to the retailers is known as whole sale trade.
Purchase of goods from the wholesaler and their sale to the ultimate consumer is known as retail trade.
Foreign Trade or External Trade:
Trade between two countries is known as foreign or external trade. There are two types of external trade.
Buying goods from other countries is known as import.
Selling goods to other countries is known as export.
Aids to Trade:
The activities that facilitate the trade are known as aids to trade. It has follow types.
Banking: Commercial banks play an important role in financing various activities of trade.
Insurance: Insurance is another important aids to trade. The risk of damage of goods due to fire, flood etc is covered by insurance.
Transport: The different means of transport like railways, ships, airlines etc help in the transfer of goods from their place of production to the ultimate consumer.
Warehousing: Goods more than market demand are stored, hence warehousing is another aids to trade.
Advertisement: Now a day's advertisement is the biggest source of selling goods.
Agents: The agents are responsible for the completion of transfer, exchange or sale of goods from manufacturer to the ultimate consumer.
It includes all those activities, which are related to the transfer of goods from the place of production to the final consumers, at the right time, at the right place, in the right quantity and at the right price. Commerce can be divided into two parts.
Those are trade and aids to trade.
Trade:
Trade means exchange of goods between individuals and groups for money. Trade is of two types.
Home Trade or Internal Trade:
Trade within the borders of the country is known as home or internal trade. Home trade is of two types.
Purchase of goods in large quantities from producers and their sale to the retailers is known as whole sale trade.
Purchase of goods from the wholesaler and their sale to the ultimate consumer is known as retail trade.
Foreign Trade or External Trade:
Trade between two countries is known as foreign or external trade. There are two types of external trade.
Buying goods from other countries is known as import.
Selling goods to other countries is known as export.
Aids to Trade:
The activities that facilitate the trade are known as aids to trade. It has follow types.
Banking: Commercial banks play an important role in financing various activities of trade.
Insurance: Insurance is another important aids to trade. The risk of damage of goods due to fire, flood etc is covered by insurance.
Transport: The different means of transport like railways, ships, airlines etc help in the transfer of goods from their place of production to the ultimate consumer.
Warehousing: Goods more than market demand are stored, hence warehousing is another aids to trade.
Advertisement: Now a day's advertisement is the biggest source of selling goods.
Agents: The agents are responsible for the completion of transfer, exchange or sale of goods from manufacturer to the ultimate consumer.
