List and explain FIVE importance of commerce to an economy. – NABTEB QUESTION

Importance of commerce to an economy are:

(i) Exchange of goods and services: Commerce facilitates exchange of goods and services through buying and selling.

(ii) Warehousing: Commerce makes storage possible through warehousing.

(iii) Employment opportunities: Commerce provides employment opportunities

(iv) Finances business: Commerce assists in financing business through banks

(v) Improves the standard of living: Commerce increases the standard of living of a people by bringing in variety of goods from other countries.

(vi) Inter-dependence of nations: Commerce makes for interdependence of nations through international trade

(vii) Specialization: Commerce facilitates specialization and mass production of goods and services

(viii) Transport: Commerce aids the movement of goods and services from areas of abundance to where they are scare through transportation.

(ix) Communication: Commerce promotes rapid transfer of both oral and written messages through communications

(x) Creates awareness: Commerce creates awareness for goods and business opportunities through advertising

(xi) Generating of revenue: Commerce generates revenue for entrepreneur and for the nation.

(xii) Development of infrastructure: Commerce leads to the development of infrastructural facilities.