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Page 1: Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to

Page 2: Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to

Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to trade.

COMMERCE

Trade Aids to trade

• Insurance

• Advertising

• Transport

• Communication

• Warehousing

• Banking and finance

Home

• Wholesale

• Retail

Foreign

• Import

• Export

• Re-export

Page 4: Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to

TRADE

Within a country Across country

Wholesaler

Retailer

CONSMER

Retailer

Wholesaler

Importer

Exporter

Page 5: Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to

Aids to Trade

• Insurance: providing compensation for risks they have to take

• Advertising: providing information and promoting sales of goods and services

• Transport: moves raw materials, equipment and finished product whenever they are needed

• Communication: helps traders to exchange information and maintain contacts with one another

• Warehousing: providing storage for goods until needed

• Banking and finance: making money available at all stages of production of goods

Page 6: Commerce is the exchange and distribution of goods and services which involves the making of profits. The scope of commerce includes trade and aids to

Types of Production

Primary: involves the direct extraction of natural resources from the earth. E.g. farming, fishing

Secondary: concerned with all industries which change raw materials into semi-finished goods and finished goods. E.g. garment industry

Tertiary: includes all industries that provide services to consumers or producers. E.g. teaching

Contracting profits

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