Commerce - nature

All activities of various agencies which ensure a

free flow of goods and services between the
producers and consumers
A link between producer and consumer
Activities that are required for bringing goods
to the hands of the ultimate consumers
Ensure the supply of goods at the right place,
in proper quantities and at the time when they
are demanded
Removes all obstacles in the exchange process

Commerce
Function
Remove the following
hindrances:
Hindrance of person
Hindrance of place
Hindrance of time
Hindrance of
exchange
Hindrance of risk
Hindrance of
knowledge

Importance

Satisfy increasing human wants

Improve standard of living
Links producers and consumers
Generates employment
opportunities
Increases national income and
wealth
Helps in expansion of aids to
trade
Growth of industrial development
Encourages international trade
Benefits underdeveloped
countries

Business Activities
Industrial activities [production of
goods]
Commercial activities [distribution of
goods and rendering of services]

Industrial activities

Genetic industry
Extractive industry
Manufacturing industry
Construction industry

Commercial activities
Trade
Home trade
Wholesale trade
Retail trade

Foreign trade
Export
Import
Entrepot

Aids to trade

Transportation
Warehousing
Banking
Insurance
Advertising and
publicity
Communication

Industrial activities
On the basis of size and
investment

On the basis of
activity

Primary sector
Secondary sector
Tertiary sector

Micro
Small
Medium
Large

Interrelationship between
commerce, trade and industry
Between industry and commerce
Between commerce and trade
Interrelationship between commerce,
trade and industry

Business Objectives

Economic
Human
Social
National

Economic

Social

Profit earning motive

Optimum use of
resources
Creation of demand
Goodwill and
recognition of
business
Production of tangible
forms of wealth

Provision of employment
Supply of quality goods at
reasonable prices
Assistance for social
development
Rehabilitating displaced
persons
Protection of the
environment
Payment of dues to
government
Avoiding anti-social activities

Human Objectives
Fair treatment of
workers
Fair treatment of
customers
Fair treatment of
suppliers and creditors
Fair treatment of
investors

National
Objectives
Balanced
regional
growth
National prosperity
and economic growth
Growth of small
business
Producing goods
according to national
priorities
Economic self-reliance
Development of skilled
personnel