5 Questions
What is commerce?
The organized system of activities contributing to the distribution of goods and services
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
What does commerce consist of?
Trade and aids to trade along the entire supply chain
How is trade categorized?
Into domestic trade, including retail and wholesale as well as local
What is the primary purpose of trade?
To exchange goods and services between buyers and sellers for a price
Study Notes
What is Commerce?
- Commerce refers to the exchange of goods, services, or something of value between businesses, organizations, or individuals.
Principal Factors that Give Rise to Commercial Exchanges
- Difference in specialization and division of labor
- Variation in demand and supply of goods and services
- Availability of resources and technology
- Existence of markets and transportation infrastructure
Composition of Commerce
- Commerce consists of trade, aided by auxiliary activities such as:
- Banking and finance
- Insurance
- Transportation
- Warehousing
- Advertising
- Marketing
Categorization of Trade
- Trade can be categorized into two main types:
- Internal trade (domestic trade): occurs within a country's borders
- External trade (international trade): occurs between different countries
Primary Purpose of Trade
- The primary purpose of trade is to provide goods and services to satisfy the needs and wants of individuals and businesses.
Test your knowledge of commerce with this quiz! Explore topics such as supply chain management, marketing strategies, consumer behavior, and more. See how well you understand the principles and practices that drive the smooth distribution and transfer of goods and services in the marketplace.
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