Give me some importance of commerce?

Smashing

7 years ago

1. Commerce tries to satisfy increasing
human wants
Human wants are never ending. They
can be classified as 'Basic wants' and
'Secondary wants'. Commerce has made
distribution and movement of goods
possible from one part of the world to
the other. Today we can buy anything
produced anywhere in the world. This
has in turn enabled man to satisfy his
innumerable wants and thereby
promoting social welfare.
2. Commerce helps to increase our
standard of living
Standard of living refers to quality of life
enjoyed by the members of a society.
When man consumes more products his
standard of living improves. To consume
a variety of goods he must be able to
secure them first. Commerce helps us to
get what we want at right time, right
place and at right price and thus helps in
improving our standard of living.
3. Commerce links producers and
consumers
Production is meant for ultimate
consumption. Commerce makes possible
to link producers and consumers
through retailers and wholesalers and
also through the aids to trade.
Consumers get information about
different goods through advertisements
and salesmanship. The manufacturers
are regularly informed about the likes
and dislikes of the consumers through
marketing research. Thus commerce
creates contact between the centers of
production and consumption and links
them.
4. Commerce generates employment
opportunities
The growth of commerce, industry and
trade bring about the growth of
agencies of trade such as banking,
transport, warehousing, advertising, etc.
These agencies need people to look after
their functioning. Increase in production
results in increasing demand, which
further results in boosting employment
opportunities. Thus development of
commerce generates more and more
employment opportunities for millions of
people in a country.
5. Commerce increases national income
and wealth
When production increases, national
income also increases. In a developed
country, manufacturing industries and
commerce together accounts for nearly
80% of total national income. It also
helps to earn foreign exchange by way
of exports and duties levied on imports.
Thus, commerce increases the national
income and wealth of a nation.
6. Commerce helps in expansion of aids
to trade
With the growth in trade and commerce
there is growing need for expansion
and modernization of aids to trade. Aids
to trade such as banking,
communication, advertising and
publicity, transport, insurance, etc., are
expanded and modernised for the
smooth conduct of commerce.
7. Commerce helps in growth of
industrial development
Commerce looks after the smooth
distribution of goods and services made
available by the industry. Without
commerce, industry will find it difficult to
keep the pace of production. It helps to
increase demand for goods on one hand
and on the other hand it helps industries
by getting them the necessary raw
materials and other services. Hence,
commerce helps in attaining better
division of labour and industrial
progress.
8. Commerce encourages international
trade
Through commerce we can secure a fair
and equitable distribution of goods
throughout the world. With the help of
transport and communication
development, countries can exchange
their surplus commodities and earn
foreign exchange, which is very useful
for importing machinery and
sophisticated technology. It ensures
faster economic growth of the country.
9. Commerce benefits underdeveloped
countries
Underdeveloped countries can import
skilled labour and technical know-how
from developed countries. While the
advance countries can import raw
materials from underdeveloped
countries. This helps in laying down the
seeds of industrialization in the
underdeveloped countries.
10. Commerce helps during
emergencies
During emergencies like floods,
earthquakes and wars, commerce helps
in reaching the essential requirements
like foodstuff, medicines and relief
measures to the affected areas.

Smarteli

7 years ago

Importance of Commerce The
importance of trade and commerce
are mentioned in following points :-
1. Commerce tries to satisfy
increasing human wants Human
wants are never ending. They can
be classified as 'Basic wants' and
'Secondary wants'. Commerce has
made distribution and movement of
goods possible from one part of the
world to the other. Today we can
buy anything produced anywhere in
the world. This has in turn enabled
man to satisfy his innumerable
wants and thereby promoting
social...