5 Questions
What are the principal factors that give rise to commercial exchanges?
Diversity in the distribution of natural resources, differences of human needs and wants, and division of labour along with comparative advantage
What does commerce consist of, along the entire supply chain?
Trade and aids to trade
What is trade categorized into?
Domestic trade, including retail and wholesale as well as local
What does commerce contribute to in economies?
Smooth, unhindered distribution and transfer of goods and services
What is the definition of trade according to the text?
The exchange of goods and services between buyers and sellers in return for a price at traditional (or online) marketplaces
Study Notes
Factors of Commercial Exchanges
- The principal factors that give rise to commercial exchanges are differences in demand and supply, geographical specialization, and technological advancements.
Composition of Commerce
- Commerce consists of a series of activities along the entire supply chain, including production, distribution, and exchange of goods and services.
Categorization of Trade
- Trade is categorized into two main types: internal trade (domestic trade) and external trade (international trade).
Contributions of Commerce
- Commerce contributes to economic growth, job creation, and improvement in living standards in economies.
Definition of Trade
- Trade refers to the exchange of goods, services, or somethings of value between businesses, organizations, or individuals.
Test your knowledge of commerce with this quiz! Explore topics such as supply chain management, marketing, finance, and more. See how well you understand the large-scale system of activities and institutions that facilitate the exchange of goods and services.
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