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

Micro Small Medium Large

On the basis of activity Primary sector Secondary sector Tertiary sector

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

Social
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