Branches of Commerce

By the end of this session, you will be able to: Define Branches of commerce, Trade and Aids to Trade. Identify and the types of trade. Define import and export. Identify and explain at least four Aids to Trade. Create a PowerPoint presentation with the help of a storyboard for the topic Branches of Commerce.

CLICK THE HEADINGS FOR MORE DETAILS

Home trade
Trade Branches of Commerce Foreign Trade Banking Transport Communications

Aids to Trade
Advertising Warehousing

Insurance

Branches of Commerce
Commerce includes all the activities which contribute to the transfer of surplus goods from the original producer to the final consumer at the right time, at the right place, in the right quantity and at the right price.

Trade
Trade means the actual buying and selling of goods with a view to making a profit. It involves satisfying directly or indirectly the wants of consumers by transporting the 'right' goods, both final and intermediate, from the producers to the consumers. There are two main types of trade; Home trade and Foreign trade

Aids to Trade
Trade cannot be carried on without aids to trade. So aids to trade are the various activities carried on to help carry out trade. The aids to trade include banking, transport, communications, warehousing, advertising and insurance.

Home Trade
Home trade is carried out among the people of the country itself. It may be wholesale or retail. A wholesaler buys from the producer and sells to the retailer who in turn resells to the final consumer.

Foreign Trade
Foreign trade is trade between the people of one country and the rest of the world. It may be import trade or export trade, both of which are normally wholesale in nature.

Banking
Commercial banks facilitates trade and production by providing:

Finance-loans and overdrafts

Other services of current account- receipts and payments by cheques standing order, direct debit, etc. Services of deposits account Other services

Transport
Without transport it is impossible for raw materials and finished goods to move from other sources through the various stages until they reach the final consumer. Imports and exports are normally transported by sea and air. Same time goods in home country are conveyed by road and rail.

Communications
It is very important for traders and all other commercial institutions to transmit and receive accurate information via telephone, fax, telegram, e-mail, letter, etc.

Advertising
Advertisements remind the final consumer about the availability of particular brand of goods and services and try to persuade the people to buy them. Advertisement provides market for the particular brand.

Warehousing
Warehouse provides storage facilities for goods after purchase or after manufacturing. Warehouses ensure the continuous supply of raw materials and finished goods and prevent fluctuations in prices.

Insurance
Insurance companies facilitate the production and trade by absorbing some of the risks. Businessmen face various types of risks. The goods may be destroyed during production stage of storing. Therefore, insurance companies give protection against all kinds of insurable risk.