BRANCHES OF COMMERCE

1.Commerce includes all the activities which contribute to the transfer of surplus goods from the original producer to the final consumer at the right time, at the right place, in the right quantity and at the right price.

2. To effect this transfer efficiently, both trade and aids to trade are required.

3 Trade means the actual buying and selling of goods with a view to making a profit. It involves satisfying directly or indirectly the wants of consumers by transporting the 'right' goods, both final and intermediate, from the producers to the consumers.

4. There are two main types of trade:

       (a)  Home trade is carried out among the people of the country itself. It may be wholesale or retail. A wholesaler buys from the producer and sells to the retailer who in turn resells to the final consumer.

       (b)  Foreign trade is trade between the people of one country and the rest of the world. It may be import trade or export trade, both of which are normally wholesale in nature.

5. Trade cannot be carried on without aids to trade. So aids to trade are the various activities carried on to help carry out trade. The aids to trade include banking, transport, communications, warehousing, advertising and insurance.

6. Everyone, whether in the capacity of a final consumer or a producer such as a farmer, a manufacturer, a trader or even a doctor, requires the services of commerce, i.e. trade and aids to trade.

7. Commerce is needed in the production process, before and after the production of raw materials and finished goods.

RODUCTION

Production is the process by which raw materials are transformed into finished goods to satisfy the requirements of consumers or other organizations. In addition to being in the right form, the goods must be in the right place at the right time before the process of production is complete.