what is commerce what is role of commerce in business
Answers
Answer:
Explanation:
Commerce is concerned with buying, selling and distribution of commodities. It is an organised system for the exchange of goods and services. It involves not only the functions of buying and selling but several other activities required to facilitate buying and selling
Explanation:
1. Commerce tries to satisfy increasing human wants
Human wants are never-ending. They can be classified as 'Basic wants' and 'Secondary wants'. Commerce has made distribution and movement of goods possible from one part of the world to the other. Today we can buy anything produced anywhere in the world. This has, in turn, enabled man to satisfy his innumerable wants and thereby promoting social welfare.
2. Commerce helps to increase our standard of living
Standard of living refers to the quality of life enjoyed by the members of society. When man consumes more products his standard of living improves. To consume a variety of goods he must be able to secure them first. Commerce helps us to get what we want at the right time, right place and at the right price and thus helps in improving our standard of living.
3. Commerce links producers and consumers
Production is meant for ultimate consumption. Commerce makes possible to link producers and consumers through retailers and wholesalers and also through the aids to trade. Consumers get information about different goods through advertisements and salesmanship. The manufacturers are regularly informed about the likes and dislikes of consumers through marketing research. Thus commerce creates contact between the centers of production and consumption and links them.
4. Commerce generates employment opportunities
The growth of commerce, industry, and trade bring about the growth of agencies of the trade such as banking, transport, warehousing, advertising, etc. These agencies need people to look after their functioning. Increase in production results in increasing demand, which further results in boosting employment opportunities. Thus the development of commerce generates more and more employment opportunities for millions of people in a country.
5. Commerce increases national income and wealth
When production increases, the national income also increases. In a developed country, manufacturing industries and commerce together account for nearly 80% of total national income. It also helps to earn foreign exchange by way of exports and duties levied on imports. Thus, commerce increases the national income and wealth of a nation.