Define commerce AND Explain the different functions of commerce in your country. – NABTEB QUESTION

ANSWER:

What is Commerce: Commerce can be defined as the process of buying, selling, exchange and distribution of goods and services. Commerce can also be defined as trades and aids to trade.

The function of commerce in any given country is as follows:

(1) Provide employment opportunities for citizens of the country: This can be seen from people who engages either in retail, wholesale or a big conglomerate trading.

(2) Storage of goods is made possible through commerce: Ware housing as one of aids to trade ensures the storage of goods till they are wanted. In most cases, big traders, like wholesalers and big retailers, usually acquire large quantities of goods for sale. They need ware housing facilities to store the goods before they are sold.

(3) It increases the standard of living of the people by making it possible for scarce commodities to arrive into the country from other countries through international trade

(4) It facilitates international cooperation: Many countries engage in different types of productive occupations due to improvement in technology, these countries produce more than they need for themselves. They export the surplus of what they produce to other countries that needs these things. In turn they import from other countries some other things they are not able to produce themselves. This interdependence of people and countries fosters friendship and cooperation.

(5) Infrastructural development: Commerce brings about the development of the infrastructural facilities of a country. Many developing countries depend on the services of the advanced countries for the provision and building of their infrastructural facilities.

(6) Through banking and finance, the fund needed for commerce is made possible

(7) Through commerce, exchange of goods and services is made possible.