Branches of commerce

Branches of commerce:
1.Trade
2.Aid to trade

1. Branches of Commerce Commercial activities may be classified into two broad categories: 1.TRADE 2.AIDS OF TRADE

2. 1.TRADE Trade is the means of buying and selling of goods and services with the aim of earning profit. It involves exchange of commodities for money or money’s worth. Traders serves as the link between producer and consumer. Producer trader consumer

3. Home trade Domestic trade or internal trade It means buying and selling within geographical boundaries of one country. Both the buyer and seller belong to the same country. Trade between Bombay and New Delhi

4. Home trade is classified as A)Wholesale trade It involves buying and selling of goods in large quantity. Traders engaged in wholesale are called WHOLESALERS. PRODUCER  WHOLESALERS  RETAILER B)Retail trade It involves buying and selling of goods in small quantity. Traders engaged in retail trade are called RETAILERS. WHOLESALERS  RETAILER  CONSUMER

5. FOREIGN TRADE External trade or international trade Buying and selling of goods and services between two or more countries. It enables a country to concentrate on the production of goods it is best suited. It also enables to obtain goods which cannot profitably produced at home country.

6. Foreign trade classification a)EXPORT TRADE It implies the SALE of goods to foreign countries. India exports tea to The United Kingdom C) ENTREPOT TRADE or Re-Export trade It means importing goods from one country for the purpose of exporting to another country India imports certain commodities from European countries and exports them to Bhutan and Nepal b)IMPORT TRADE It implies the PURCHASE of goods to foreign countries. India imports petrol from Iran

7. AIDS TO TRADE OTHER AIDS : Proper packing Telephone, Internet,Postal services