Commerce: Trade and Aids to Trade

• Commerce includes activities from start of production to consumption of goods and services
• It is a wide field that touches production, distribution, marketing, and finance

Trade

• Trade is fundamental to commerce entailing transfer of goods/services between entities, often for money
• Domestic trade occurs within a country's borders
• International trade involves transactions between countries
• Wholesale trade sells large quantities to retailers/businesses
• Retail trade sells directly to consumers for personal use
• E-commerce involves online sales

Aids to Trade

• These activities facilitate the process of trade, increasing efficiency
• Transportation moves goods using road, rail, water, and air
• Warehousing stores and protects goods, ensuring availability
• Banking/finance provides loans, credit, and payment processing
• Insurance protects from theft, damage, or loss
• Advertising promotes products/services
• Communication services enable contact among stakeholders

Business Organizations

• These entities carry out commercial activities
• Sole proprietorships are owned/run by one person, who is liable for all debts
• Partnerships involve two or more individuals sharing profits/losses
• Companies are separate legal entities with limited liability
• Cooperative societies are formed by people with common interests

Finance and Accounting

• Finance manages money/investments, including budgeting, borrowing, lending, saving, and forecasting
• Financial accounting records, classifies, and summarizes financial transactions
• Cost accounting determines the cost of products/services
• Management accounting provides financial information to managers

Marketing

• Marketing involves creating, communicating, and delivering customer value
• Market research gathers information about markets, customers, and competitors
• Product development creates/improves products
• Pricing strategies set product/service prices
• Promotion communicates with customers through advertising/PR
• Distribution channels bring products/services to consumers

Human Resources

• HR management manages employees to achieve organizational goals
• Recruitment and selection attract/choose qualified candidates
• Training and development provide employees with skills
• Performance appraisal evaluates performance
• Compensation and benefits attract/retain employees
• Employee relations manage relationships between employees/organization

Business Law

• This governs business conduct and commercial transactions
• Contract law deals with agreements between parties
• Intellectual property law protects creations through patents, copyrights, and trademarks
• Consumer protection law protects consumers
• Corporate law governs company operation

Economics

• Economics studies the allocation of scarce resources
• Microeconomics focuses on individual behavior
• Macroeconomics examines the entire economy
• Economic systems use different approaches to resource allocation
• Market structures affect pricing, output, and efficiency.

International Business

• International business covers commercial transactions across borders
• Global trade organizations facilitate international trade
• Foreign exchange markets determine currency exchange rates
• Multinational corporations (MNCs) operate in multiple countries
• International marketing adapts strategies to different countries

Entrepreneurship

• Entrepreneurship involves starting and managing a business
• Business planning outlines goals and strategies
• Startup funding sources include savings, loans, and crowdfunding
• Innovation and creativity foster a competitive edge
• Risk management mitigates risks