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Questions and Answers
What are the principal factors giving rise to commercial exchanges?
What are the principal factors giving rise to commercial exchanges?
- Diversity in the distribution of natural resources, differences of human needs and wants, and division of labour (correct)
- Uniform distribution of natural resources, similarities in human needs and wants, and centralized labour
- Limited distribution of natural resources, differences of human needs and wants, and division of labour
- Differences in the distribution of natural resources, centralized human needs and wants, and division of labour
What does commerce involve?
What does commerce involve?
- Unorganized system of activities contributing to the distribution of goods and services
- Activities contributing to the production of goods and services
- Organized system of activities contributing to the distribution of goods and services (correct)
- Limited scale activities contributing to the distribution of goods and services
What does trade involve?
What does trade involve?
- Exchange of goods and services between producers and consumers for a price at marketplaces
- Exchange of goods and services between buyers and sellers for a price at marketplaces (correct)
- Exchange of goods and services between buyers and consumers for a price at marketplaces
- Exchange of goods and services between producers and sellers for a price at marketplaces
What does domestic trade include?
What does domestic trade include?
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What does commerce consist of?
What does commerce consist of?
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Study Notes
Principal Factors of Commercial Exchanges
- Economic environment influences supply and demand dynamics.
- Consumer preferences affect the types of goods and services exchanged.
- Technological advancements streamline processes and improve efficiency.
- Government regulations and trade policies impact the flow of goods and services.
- Cultural factors shape market trends and consumer behavior.
Involvement of Commerce
- Commerce entails the exchange of goods and services on a large scale.
- It involves various activities such as buying, selling, and distribution.
- Commerce includes both wholesale and retail transactions.
- Services such as banking, insurance, and advertising fall under commercial activities.
Trade Involvement
- Trade involves the transfer of goods and services between parties.
- It can occur on an international, national, or local scale.
- Exchange can be either monetary or through barter systems.
- Trade agreements and tariffs can influence trade flows.
Components of Domestic Trade
- Domestic trade refers to trade within a country's borders.
- It includes the sale of goods produced locally as well as imports.
- Sectors involved are retail, wholesale, and agriculture.
- Local market dynamics play a significant role in shaping domestic trade.
Composition of Commerce
- Commerce consists of various practices including marketing, logistics, and e-commerce.
- It enhances economic development by facilitating trade relationships.
- Key players include manufacturers, retailers, consumers, and service providers.
- Commerce fosters competition, driving innovation and improving service quality.
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