Definition of CommerceĬommerce includes all the activities that help in facilitating the exchange of goods and services from the manufacturer or the producer to the ultimate consumers. Foreign trade is done through investment in securities or funds and can be termed as imports and exports. Domestic trade means within the border of the country, and foreign trade means across the borders. Trade can be domestic as well as foreign. With the advent of money, this process became more convenient for both the sellers and buyers. It is hard to evaluate the exact value because of the different commodities type involved in the exchange. When the buying and selling take place between two persons, it is called bilateral trade whereas when it is done between more than two persons, then it is called multilateral trade.Įarlier the trade was little cumbersome since it followed the barter system where goods were exchanged in return of other goods or commodities. Trade can be done between two parties or more than two parties. In trade, the ownership of goods or services is transferred from one person to the another in consideration of cash or cash equivalents. Trade means the exchange of goods and services between two or more parties in consideration of money or money’s worth.Ĭommerce means exchange of goods and services between the parties along with the activities such as insurance, transportation, warehousing, advertising etc that completes that exchange.
To further comprehend the understanding of these two terms the basic comparison is given below: Content: Trade Vs Commerce The scope of commerce is wider than that of trade, which not only refers to the exchange of goods and services but also includes all those activities that are vital for the completion of that exchange.
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