Commerce And Trade

                                           Commerce

Meaning Of Commerce:

            In the words of James Stephenson, "Commerce is the sum total of all those processes which are engaged in the removal of the hindrances of persons, place and time in the exchange of commodities.

 

Scope of Commerce:

1.Commerce is not a single activity it includes many activities, such as trade or aids to trade.

2.Goods are produce for the purpose of consumption, they have to be made available from the places of production to the places of consumption.

3.There are certain hindrances or obstacles in the distribution of goods from the producers to the consumers these hindrances are mainly of six types,

* Hindrance of person.

*Hindrance of place.

*Hindrance of risk.

*Hindrance of time.

*Hindrance of finance.

*Hindrance of information.

4.The hindrance of person is removed by exchange.

5.The hindrance of place is overcome by transport.

6.Such as roadways, railways, waterways and airways.

                                     

                                                 Trade

Meaning of trade:

            Trade or exchange refers to buying and selling goods.

Trade can classified in to two types, they are:

1.Internal Trade.

2.Foreign Trade.

                                        Internal Trade

            Internal trade refers to trade within the boundaries of a country the buyers and sellers belong to the same country. Internal trade can be divided into two types, they are:

1.Wholesale trade: Wholesale trade is the sale of one or few classes of goods in large quantities by the producers or the wholesalers to retainers.

2.Retail trade: Retail trade is the sale of variety of goods in comparatively smaller quantities by the retail traders to the ultimate consumers.

                                      Foreign Trade

             Foreign trade refers to trade between one country and another, the buyers and sellers belong to different countries. Foreign trade can be divided into three types, they are:

1.Import Trade:Import trade refers to the purchase of goods from other countries for domestic use.

2.Export Trade: Export trade refers to the sale of home goods to other countries.

3.Enterpot Trade: Enterpot trade refers to import of goods from one country for the purpose o0f export to some other country.