Saturday, 3 September 2016

Explain the ways in which industry, commerce and direct services are inter-related and interdependent.



All human beings have unlimited wants. Human wants can be satisfied by production. Production takes place in industries. Industries produce goods and services to satisfy human wants. All goods and services produced should reach the final consumers. Here commerce assists a lot. Commerce includes trade and aids to trade. Commerce does see that all those goods and services being produced should reach the final consumers. In this regard, banking, insurance, communications, warehousing and transport assist the industries so as to reach the goods and services to the final consumers.
Direct services are those services which are performed directly to the people who receive them. This is concerned with the provision of personal services. Direct services are not concerned with the distribution of goods. They enable the private individuals to make use of health facilities (eg, using doctors) and obtaining knowledge and skills (eg, using teachers) as well as relying on the maintenance of law and order and other personal services (eg, hair dressing, journalist). Direct services help the firms’ employees to be better educated and healthier and therefore they will be more productive.
Direct services like education, health services, professional services assist industries in such a way that both skilled and unskilled workers are available for those industries. Clerical staff offer their services for a smooth running of both trade and commercial activities. Thus, commerce, industries and direct services are interdependent to each other.


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