Introduction to Commerce

Introduction:

To guarantee a continuous existence, human beings of different age groups are involved in one economic struggle or the other. This struggle started in the olden days whereby people were involved in one economic activity or the other to improve their living.

The ancient societyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More then struggled to meet all their needs (self-subsistence) until it dawned on them that no one man can provide all the requirements for life’s existence. This led them to the Idea of exchange of goods for other goods or services. Therefore, the exchange of goods for other goods or services is known as trade by barter.

Today, virtually what people do to earn a living revolves around the Production, Distribution and Exchange of Goods and Services. All these economic activities that assist people to earn their living act as a focus of study in Commerce.

Meaning of Commerce:

Commerce can be defined as the study of Production, Distribution and Exchange of Goods and Services with the aim of satisfying human wants and also earning a living.

Commerce can be referred to as the study of how man buys sells and distributes goods and services. It is also the process of the buying, selling and distribution of goods and services through the assistance of aids to trade such as Insurance, Banking, Transportation, Warehousing, Tourism, Advertising and Communication.

In commerce, goods are produced and at the same time distributed to the right people, right place and time.

Summarily, Commerce can be defined as trade and aids to trade.

Scope of Commerce:

It is essential to note that all economic activities are the lifeblood of every country’s economic system. Commerce comprises of production, distribution, and exchange of goods and services which satisfy the wants and needs of the people. Commerce is majorly trade and aids to trade.

The aids to trade are all the auxiliary services which assist the smooth transaction of buying and selling example, transportation, banking, insurance, warehousing, tourism, advertising, and communication.