Business is divided into two categories: industry and commerce. Commerce is again sub-divided into trade and aids to trade. Practically all of them are closely related to each other. They are inseparable. All of them are parts of the whole business system.
Industry and commerce are closely related to each other. Industry cannot exist without commerce and commerce cannot exist without industry. Because every producer has to find his market for his products to sell. But the producer has no direct connection with the buyers or consumers. Hence, industry needs commerce.
Commerce is concerned with the sale, transfer or exchange of goods and services. Hence commerce needs industry for the production of goods and services. Commerce makes the necessary arrangement for linking between producers and ultimate consumers. It includes all those activities that are involved in buying, selling, transporting, banking, warehousing of goods, and insurance for safeguarding the goods.
Trade includes sale, transfer or exchange of goods. It does not include other functions of commerce like transportation, insurance, banking, warehousing, etc. If there were no trade, the producers would have to find customers for their products. Therefore without trade there would be little need for commerce. Similarly trade without aids to trade is meaningless and they exist for trade.
In conclusion, we can say that industry, trade and commerce are inter-related with each other. Industry is concerned with production of goods and services and commerce arranges its sales; but the actual operation of sales is in the hands of trade. So they cannot work independently.
Industry and commerce are closely related to each other. Industry cannot exist without commerce and commerce cannot exist without industry. Because every producer has to find his market for his products to sell. But the producer has no direct connection with the buyers or consumers. Hence, industry needs commerce.
Commerce is concerned with the sale, transfer or exchange of goods and services. Hence commerce needs industry for the production of goods and services. Commerce makes the necessary arrangement for linking between producers and ultimate consumers. It includes all those activities that are involved in buying, selling, transporting, banking, warehousing of goods, and insurance for safeguarding the goods.
Trade includes sale, transfer or exchange of goods. It does not include other functions of commerce like transportation, insurance, banking, warehousing, etc. If there were no trade, the producers would have to find customers for their products. Therefore without trade there would be little need for commerce. Similarly trade without aids to trade is meaningless and they exist for trade.
In conclusion, we can say that industry, trade and commerce are inter-related with each other. Industry is concerned with production of goods and services and commerce arranges its sales; but the actual operation of sales is in the hands of trade. So they cannot work independently.
