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meaning of commerce

Meaning of commerce, what is the Meaning of commerce. Commerce can be defined as all activities involved in the distribution of goods and services. To explain the word commerce, we can say commerce is any business activity.  It also known as buying and selling of goods and services. Sometimes commerce is confused with economics but they are quite different from each other. Economics is the study of human behavior in relation to how he gets his resources and how he uses it to satisfy his numerous wants.

How can we differentiate the meaning of commerce from economics?

To understand the meaning of commerce you have to first know the meaning of economics. The truth is commerce is a sub-course in economics. Since it is a branch of production, which the one aspect of production of goods is how to market the produced goods and services to end users or consumers. Meaning of commerce

Technically or in reality, commerce is a branch of production while production is a branch of economics.

Meaning of commerce in relation to production

  Commerce in real time is a sub branch of production concerned with the distribution of produced goods and services so that the produced goods and services will eventually reach the final consumers. So the scope or meaning of commerce is that it covers all about trade and aids to trade. Which means commerce is all about trade and every activity carried out to facilitate trade.

Production in relation to the meaning of commerce

As stated earlier, the most important meaning of commerce is the production can only be said to be complete if the produced goods and series reached the final consumer and this where the distribution of goods and services comes in. production process has three major activities, which are production, exchange and consumption.

HOW COMMERCE DOES DIFFERS FROM ECONOMICS?

Commerce is said to be different from economics as commerce focuses only the exchange part of production. So in a commercial view, exchange would majorly concern itself with transfer or distribution of finished goods and services from their producers so commerce is the practical aspect of trade and how to trade.

These aids to trade activities includes

  1. Distribution
  2. Banking
  3. Transportation
  4. Advertising
  5. Warehousing
  6. Communication
  7. Insurance
  8. Tourism

Now that you have the basic idea of the meaning of commerce how it is a branch of production, types of production can be found here, for more on scope of commerce check out this post. To find out more about types of trade read here. To read my post on aids to trade please read here

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