Question

Describe the activities relating to commerce.

Answer 1

Commerce includes two types of activities:

• Trade- Trade involves buying and selling of goods. It helps in making goods available for customers to buy. Producers cannot sell their produce to individual buyers hence businessman works as a middleman between them. Trade is of two types: Internal Trade and External Trade.
• Auxiliaries to trade- These are activities which supports trading. Transport, banking, insurance, warehousing, and advertising are regarded as auxiliaries to trade. These are generally known as services. They remove any hurdles that are faced during any trading activities. For example banking provides finance to the tradesman.