Scope Of Commerce ?

As we know the Business is very wide term, and applies to any activity carried out with an intention of making a profit whole standing a risk or loss.
A person may be in business as a trader, a producer, a manufacturer, a transporter or a farmer. All those engaged in commerce are businessmen but not all those engaged in business are necessarily commercial people, for instance a manufacturer is a businessman but is not engaged in commerce.
Commerce is   study of business activities, Commerce applies to activities related to trade and aids to trade only.Scope of commerce is very wide and important.Every body, in his daily life is concerned with both economic and non economic activities.Economic activities like employment, profession, Business.

Scope of commerce is very wide and important; scope of commerce can be explained with the help of  diagram:

Commerce is concerned with activities related to trade and aids to trade.

                                            Trade:
Trade refers to buying and  selling /exchange of goods and services against  any medium like money etc are called trade.

“Trade is an activity of buying and selling of goods money or other goods”
                                          Types Of Trade

1:Home Trade:  Trade(Buying & Selling) or exchange of goods and services within the boundaries of the same country is  known as Home Trade.

                                            Home trade is classified into two parts

Wholesale trade:    when goods are sold on large scale to a shop keeper, in order to resale this process is known as whole sale trade.

Retail trade: When shopkeeper purchase goods  from whole seller in small quantity on order to resale to the general public.

2. Foreign Trade:
Foreign trade or international refers to the exchange of goods or services between two or more countries.
                                                             Kinds of foreign Trade

A: Import trade:when a country purchases goods and services from  another country is called import trade.

B: Export Trade: Export  Trade refers to the when  a country sent goods and services to another counrty by selling to that country.

C: Enreport Trade:  Entrepot refers to Purchasing of goods from different countries for the purposre of re_Export. In that case goods are stored bonded in ware houses till they are re_exported.

                                              Auxiliaries or Aids to  Trade
1:Bank: When  Businessmen needs Fund to carry on business , Bank provide funds to carry on  their Business.
2: Transportation: In trade transportation overcomes the barrier of distance which is very meaningful for a strong trade.
3:Communication: Information is very  important factor in trade so the means of  communication spread commercial information to a firm ,  companies and individual.

4:Insurance:  Every business have serval  kinds of risks expected every time in that case insurance Premium over come the chance of risk and secure a trader  against risk.
5: publicity /Advertisiment: Publicity or advertisement increases the numbers of buyer which is very important for a trade to run on successful track.

6: Warehouse:   warehousing system store goods for long time period and there is  no risk of damage or expires of  goods, warehouse stores of season goods also that’s way trade may be more successful with the help of warehousing.

7:Middleman:     The role of middleman is very help full for a good trade they provides their services for buyer and seller both, they get commission as their reward