Business Makers

Commerce denotes exchange of snoods and services for money and the activities that facilitate such exchange. It is indispensable for modern economic life. Industrial activities or production is meaningless unless the goods produced are sold and distributed among consumers through commercial activities. Due to increasing division of labor and specialization, interdependence between regions and between nations has increased. Commerce contributes towards such interdependence in the following ways

Commerce facilitates exchange and movement of goods through space and time. Traders reduce the time and effort involved in buying and selling of goods and services. For example, Hero Honda makes use of a large number of dealers to sell its motorcycles to people all ov3er the country.

Commerce helps to minimize booms and depressions in the economy by ensuring a balance between production and consumption. For example, rise in the share of service sector in India’s gross domestics product (GDP) since independence has offset a sharp decline in the contribution f agricultural and manufacturing sectors. Thus, commerce ensures a more orderly and healthy growth is the economy.

Commerce creates employment opportunities both directly and indirectly. Directly, a large number of people are employed in trading, transportation, warehousing, banking, and insurance and other commercial activities. Indirectly, continuous and effective distribution of goods ensures continuous and increasing employment in industries.

Commerce is helpful in raising the standard of living of people by ensuring a steady flow of more and better goods and services. Advertising and publicity function of commerce brings new products and new used of products to the notice of consumes there by improving the quality of life.

Commerce accelerates the rate of economic development by bringing different sectors of the economy closer to each other and by facilitating better use of resources. It encourages new entrepreneurs who explore and mollies unknown and untapped resources. Commerce also facilitates growth of a primitive economy into a market economy by inducing people to reproduce not simply for self-consumption but for sale.

A country facing scarcity and famine can import food gains through commerce. Imports of food grains and life saving drugs helps to save millions of lives from starvation, disease and death.

Commercial interactions help to bring different countries together. Modern means of transportation and telecommunication bring about better mutual understanding between people. Such unification of countries brings about harmony and peace in the world. Different cultures and religions come closer to one another.