COMMERCE

 NATURE AND SCOPE OF COMMERCE

Commerce is the study of how man organizes the exchange and distribution of goods and Commerce is the study of how man organizes the exchange and distribution of goods and Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. Commerce is considered to be a part of business. It is that activity of business which is concerned with the exchange of goods and services. Some persons feel that commerce and business are synonymous. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade).

(i) Economic Activities:

Economic activities are taken up with a motive to earn profits. Commerce deals with those activities which are undertaken for profit. So only economic activities are included in commerce. It is the motive which is important and not the activity.

Some activity may both be economic and non-economic. A trader buys goods to sell them again and earn profit while a consumer buys goods for consumption. In the first case a motive is to make profit while in the second situation the motive of profit is absent. For a trader buying goods is an economic activity and a part of commerce while the purchase of goods by a consumer is non-economic activity, hence out of the purview of commerce.

(ii) Exchange of Goods and Services:

Commerce involves an exchange of goods and services for profit. The goods may be produced or procured from other sources. The purchase of goods should be to re-sell them. It means that goods should be purchased for trading purposes.

(iii) Earning Motive:

The motive for undertaking trading activities is to earn profit. Profit is an incentive or reward for undertaking commercial activities. Any activity which does not have the incentive of profit will not be a part of commerce. If a trader gives some goods as charity then it will not be a part of commerce because profit motive is missing. But if the same trader sells goods to customers, it will form a part of commerce because profit motive is present. So earning motive must be present in activities or transactions.

(iv) Creation of Utility:

Commerce creates place and time utility in goods. The goods may not be consumed at the place of production. These may be needed at different places. The goods are taken to those places where they are in need. Transportation facilities help in creating place utility in goods. The goods are also needed at different periods of time.

It may not be possible to produce goods whenever they are demanded. The producers go on producing goods as per their capacity. The goods are stored upto the time they are not demanded. The production is done at one time and consumers get them as per their needs. The storage facilities create time utility in goods. Both place and time utilities are helpful in increasing the volume of trade.

ADVERTISEMENTS:

(v) Regularity of Transactions:

The transactions should be regular. No isolated transaction will be a part of commerce. The sale of old furniture for replacing it by new is not a part of commerce. At the same time the sale of furniture by a furniture trader is commerce since the transactions are regular.

Need for Commerce:

Commerce renders an important service in production and distribution of goods and services. The goods produced not only in different parts of a country but also in other countries are made available to the users with the help of commerce. It has enabled countries or areas to concentrate in the production of those goods for which they are specialised.

The producers are relieved of the marketing botherations and they use all their energies on accelerating production. Commerce helps in taking these goods to the users at various places. People are able to buy goods produced anywhere in the world.

ADVERTISEMENTS:

Different countries have specialised in certain goods. They supply these goods to other countries and get their requirements from outside. Various agencies help in internal and external trade. The development of commerce has accelerated the pace of all round development.

Economic Basis of Commerce:

The principle of self sufficiency is no more practicable. People concentrate on the production of those goods in which they have cost advantage. The theory of comparative advantage or comparative costs of production are the basis of commerce. It gives rise to trade dealings between different persons and different areas. It will be profitable to specialise in the kind of activity in which one is most efficient.

No one region or country can be best fitted for the production of all commodities it needs. The theory of comparative costs holds good even in case of individuals. Every person will make a study of his comparative efficiency with regard to different professions that he may follow and choose that one which he feels is more rewarding or profitable. The division of labour and specialisation lead to the development of trade. Many factors influence the flow of goods from one region to the other.

Some places may be better suited for the production of particular goods as compared to others. The factors like climate, physical conditions, availability of factors of production at a region will determine as to what should be produced there. The products are sent to those places or countries where these cannot be produced at a comparative cost. The development of trade from local to international level is all due to the development of greater commercial facilities.

Branches of Commerce:

All those activities which are connected with taking goods and services from producers to users come under the purview of commerce. In between these two ends a number of obstacles have to be crossed. The goal of commerce is to ensure a proper flow of goods and services for the benefit of both producers and consumers. There may be difficulties with regard to trade, transport, distribution, finance, storage, insurance, publicity, etc. These aspects are dealt with and various difficulties are removed by the branches of commerce.

Trade is divided into branches that are Home Trade and International trade.

Home trade is where trade is carried out with in a country yet international trade or foreign tra

is where trade is carried out between two or more countries. AIDS TO TRADE Aids to Trade are activities or services which facilitate the smooth running of trade. They are auxiliary services that help a business man to smoothly carry out his trade services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries. AIDS TO TRADE Aids to Trade are activities or services which facilitate the smooth running of trade. They are auxiliary services that help a business man to smoothly carry out his trade Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries. AIDS TO TRADE Aids to Trade are activities or services which facilitate the smooth running of trade. They are auxiliary services that help a business man to smoothly carry out his trade. services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries. AIDS TO TRADE Aids to Trade are activities or services which facilitate the smooth running of trade. They are auxiliary services that help a business man to smoothly carry out his trade. V

NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countr

COMMERCE NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. COMMERCE NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries. Commerce can also be defined as the study of Trade and Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries. NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries.COMMERCE NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries.COMMERCE NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more countries.COMMERCE NATURE AND SCOPE OF COMMERCE Commerce is the study of how man organizes the exchange and distribution of goods and services to satisfy human wants. Commerce can also be defined as the study of Trade and Aids to trade. TRADE Trade is the exchange of goods or services for money or goods or services for goods or services (barter trade). Trade is divided into branches that are Home Trade and International trade. Home trade is where trade is carried out with in a country yet international trade or foreign trade is where trade is carried out between two or more coun