Commerce is the exchange and distribution of goods

Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to trade.

COMMERCE Trade Aids to trade • Insurance Foreign Home • Advertising • Wholesale • Import • Transport • Retail • Export • Communication • Re-export • Warehousing • Banking and finance

TRADE Within a country Across country Exporter Importer Wholesaler Retailer CONSMER

Aids to Trade • Insurance: providing compensation for risks they have to take • Advertising: providing information and promoting sales of goods and services • Transport: moves raw materials, equipment and finished product whenever they are needed • Communication: helps traders to exchange information and maintain contacts with one another • Warehousing: providing storage for goods until needed • Banking and finance: making money available at all stages of production of goods

Types of Production Primary: involves the direct extraction of natural resources from the earth. E. g. farming, fishing Secondary: concerned with all industries which change raw materials into semi-finished goods and finished goods. E. g. garment industry Tertiary: includes all industries that provide services to consumers or producers. E. g. teaching