Commerce Knowledge Challenge

The diversity in the distribution of natural resources, differences of human needs and wants, and division of labour along with comparative advantage.

Commerce is the large-scale organized system of activities, functions, procedures, and institutions that directly or indirectly contribute to the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality, and price through various channels from the original producers to the final consumers within local, regional, national, or international economies. It consists of trade and aids to trade along the entire supply chain.

Trade is the exchange of goods and services between buyers and sellers in return for a price at traditional (or online) marketplaces. It is categorized into domestic trade, including retail and wholesale as well as local.

Commerce plays a crucial role in ensuring the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality, and price through various channels from the original producers to the final consumers within local, regional, national, or international economies.

Division of labor is significant in commerce as it contributes to the comparative advantage and is one of the principal factors that give rise to commercial exchanges.