Commerce Introduction

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 Commerce Introduction

Commerce is the large-scale organized system of activities, functions, procedures and institutions that directly or indirectly contribute to the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality and price through various channels from the original producers to the final consumers within local, regional, national or international economies.

Commerce consists of;

  • Trade
  • Aids to trade

Trade

Trade is the central component, is the exchange of goods and services between buyers and sellers for a price and it is broadly categorized into domestic trade (including retail and wholesale as well as local, regional and inter-regional trades) and foreign trade (including import, export and entrepôt trades).



Aids to trade 

Aids to trade or auxiliary commercial activities facilitate trade and include commercial intermediaries, banking and financial services, transportation, warehousing, communication, advertising and insurance. They remove hindrances related to personal contact, payments, savings, funding, place, time, knowledge and risk. Factors influencing this complex ecosystem include financial transactions, supply chain management, consumer trends, market dynamics, regulations, technological innovation, competition and economic stability.



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