TYPES OF COMMERCE ACTIVITIES

-

TYPES OF COMMERCE ACTIVITIES 

Numerous activities are necessary to remove the obstacles or hindrances in the way of exchange of goods and services. Each group of activities undertaken to remove a particular obstacle takes the form of the branch of commerce. The branches of commerce can be classified into two broad categories viz (i) Trade, and (ii) Services which facilitate trade and industry. 

TRADE 

Trade refers to the sale, transfer or exchange of goods and services. It constitutes the central activity around which the services like banking, transportation, insurance, packaging, warehousing, and advertising cluster. Trade is actual purchase and sale of goods in a market. 
Trade may be classified into following two broad categories:-
(i) INTERNAL OR HOME TRADE:- It consists of buying and selling of goods within the boundaries of country and the payment for the same is made in national currency either directly or through banking system. Internal trade may be wholesale trade of retail trade.
(ii) INTERNATIONAL OR FOREIGN TRADE:- It refers to the exchange of goods and services between two or more countries. International trade involves the use of foreign currency. It facilitates the receipt of payment of the price of the exported goods by exporter in domestic currency and making payment of the imported goods and services to the foreign supplier in his country's national currency. To facilitate payments, involving exchange transactions, a high developed system of international banking under the overall control and supervision of the central bank of the concerned country is involved. International trade may be Import trade, Export trade or re export trade. 

SERVICES

An economy can be divided into three broad sectors, namely, (i) Primary sector that includes agriculture and allied agriculture (ii) Secondary sector that includes industrial activities of all kinds (iii) Tertiary or service sector that include services of all kinds. 
Service sector includes commercial firms engaged in providing services to organisations and individuals. 

TYPES OF SERVICES:-

(a) Business or commercial services :- like transport, communication, banking, warehousing, insurance, advertising etc.
(b) Professional services:- by lawyers, engineers, chartered accountants, doctors, architects, consultants etc. 
(c) Personal Services:- like tailoring, laundry, beauty parlor, hotel, etc.
(d) Public utility services:- provided by the government like water supply, postal communication, fire service, police service etc. 


Comments

Post a Comment

Popular posts from this blog

Economic problem

-
Image
ECONOMY AND ECONOMIC PROBLEM WHAT IS AN ECONOMY? MEANING OF AN ECONOMY:- In economics the world economics refers to the production activities of a well defined area or a region. It may be a village, a district, a city, a country or the whole world. For example when we refer to the Indian economy, we actually refer to the whole collection of farms, factories, shops, offices, banks, colleges, theaters, TV channels, and many more. Production activities are carried out by the people to earn livelihood. The earnings are in the form of wages, rent, interests and profits. On the basis of above description, economy can be defined as follows: Economy means the whole collection of production units operating in  a defined area or region by which people of that area get their living. FUNCTIONING OF AN ECONOMY An individual needs a large number of goods and services to survive and enjoy life. No individual can ever produce on his own all what he needs. He can ever prod...
Read more

Introduction to economics

-
Image
INTRODUCTION TO ECONOMICS Economics is a social    science which studies the way the society chooses to use its limited resources to produce goods and services and disturb them among people. It is a science that analyses the choice making economic behavior. Is the analysis limited to the behavior of an individual or is it extended to the country as a whole? Economics studies both. It analyses the behavior of an individual under the branch of economics called ''microeconomics'' The behavior of the society as a whole is analysed under the branch ''macroeconomics''.        MICROECONOMICS AND MACROECONOMICS Study of economics is traditionally divided into microeconomics and macroeconomics. The terms ''micro'' and ''macro'' come from the Greek words meaning ''small'' and ''large''. MICROECONOMICS   Microeconomics studies the behavior of individual economic units...
Read more