isc commerce
DESCRIPTION
Introduction to commerceTRANSCRIPT
Commerce - nature
• All activities of various agencies which ensure a free flow of goods and services between the producers and consumers
• A link between producer and consumer• Activities that are required for bringing goods to the
hands of the ultimate consumers• Ensure the supply of goods at the right place, in proper
quantities and at the time when they are demanded• Removes all obstacles in the exchange process
Commerce Function Remove the following hindrances:• Hindrance of person• Hindrance of place• Hindrance of time• Hindrance of exchange• Hindrance of risk• Hindrance of knowledge
Importance • Satisfy increasing human wants• Improve standard of living• Links producers and consumers• Generates employment
opportunities• Increases national income and
wealth• Helps in expansion of aids to trade• Growth of industrial development• Encourages international trade• Benefits underdeveloped countries
Business Activities
• Industrial activities [production of goods]• Commercial activities [distribution of goods
and rendering of services]
Industrial activities
• Genetic industry• Extractive industry• Manufacturing industry• Construction industry
Commercial activities
Trade • Home trade
– Wholesale trade– Retail trade
• Foreign trade– Export– Import– Entrepot
Aids to trade• Transportation• Warehousing• Banking• Insurance• Advertising and publicity• Communication
Industrial activities
On the basis of size and investment
• Micro• Small• Medium• Large
On the basis of activity • Primary sector• Secondary sector• Tertiary sector
Interrelationship between commerce, trade and industry
• Between industry and commerce• Between commerce and trade• Interrelationship between commerce, trade
and industry
Business Objectives
• Economic • Human• Social• National
Economic • Profit earning motive• Optimum use of resources• Creation of demand• Goodwill and recognition of
business• Production of tangible
forms of wealth
Social • Provision of employment• Supply of quality goods at
reasonable prices• Assistance for social
development• Rehabilitating displaced persons• Protection of the environment• Payment of dues to government• Avoiding anti-social activities
Human Objectives• Fair treatment of workers• Fair treatment of customers• Fair treatment of suppliers
and creditors• Fair treatment of investors
National Objectives• Balanced regional growth• National prosperity and
economic growth• Growth of small business• Producing goods according
to national priorities• Economic self-reliance• Development of skilled
personnel