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Explain the key factors that give rise to commercial exchanges.

The key factors that give rise to commercial exchanges include the distribution of natural resources, differences of human needs and wants, division of labour, and comparative advantage.

What is the definition of trade in the context of commerce?

Trade is the exchange of goods and services between buyers and sellers in return for a price at traditional or online marketplaces, including raw materials, intermediate and finished goods.

Describe the components of commerce.

Commerce consists of the large-scale organized system of activities, functions, procedures, and institutions that contribute to the 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 producers to consumers within economies.

What are the categories into which trade is categorized?

<p>Trade is categorized into domestic trade, including retail and wholesale, as well as local trade.</p> Signup and view all the answers

What are the principal factors that contribute to the smooth distribution and transfer of goods and services in commerce?

<p>The principal factors include diversity in the distribution of natural resources, differences of human needs and wants, and division of labour along with comparative advantage.</p> Signup and view all the answers