Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer it comprises the trading of something of economic value such as goods, services, information or money between two or more entities. Commerce involves trade and aids to trade which help in the exchange of goods and service we know that no one in this world can be self sufficient and we need others. For instance, if a person is an accountant he needs farmer for satisfying his needs of vegetables and food if a person is writer of course he can not be the mason or constructor. He will need a builder / constructor to construct his home but an accountant can provide his services to a firm / company for maintaining the books of account. A writer can write for magazine / newspaper.
In our routine life we exchange goods & services against money, what we have in excess we exchange with which we are deficient.
Not only individual exchange goods and services but companies institutions & countries also exchange goods and services locally and internationally if a country has a competitive advantage in technology it can export its excessive goods / services to other countries which are willing to buy it because they don’t have technology or they have differential advantage in another industry and they are using their resources in that field.
In short we feel that it is not necessary to have all the capabilities but we should have differential advantage in few fields that are most suitable for us according to our resources and capabilities. This is why, the commerce is very important in our routine life to the business life.
In our routine life we exchange goods & services against money, what we have in excess we exchange with which we are deficient.
Not only individual exchange goods and services but companies institutions & countries also exchange goods and services locally and internationally if a country has a competitive advantage in technology it can export its excessive goods / services to other countries which are willing to buy it because they don’t have technology or they have differential advantage in another industry and they are using their resources in that field.
In short we feel that it is not necessary to have all the capabilities but we should have differential advantage in few fields that are most suitable for us according to our resources and capabilities. This is why, the commerce is very important in our routine life to the business life.
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