Commerce topic 1

• Trade

  Buying and selling of goods and services to make a profit
• International trade

  • Export trade
  • Import trade
• Export trade


  Sale of goods and services for buyers in other countries to earn foreign currency and to dispose of surpluses
• Wholesale trade


  Concerned with buying from producers and manufacturers usually in bulk<br>Traditionally, breaks bulk into smaller quantities and sell to retailers<br>Nowadays, takes place in foreign trade with agents and brokers bringing buyers and sellers together
• Retail trade

  Selling goods and services to consumers who are going to make use of them for their own purposes<br>Traditionally, takes place in shops<br>Nowadays, sell online
• International trade

  Buying and selling between countries
• Trade

  • Home trade
  • Wholesale trade
  • Retail trade
  • International trade
  • Export trade
  • Import trade
• Commerce

  • Trade
  • Retail trade
  • Aids to trade
  • International trade
  • Export trade
  • Import trade
• Import trade


  Buying of goods and services from sellers in other countries
• Commerce

  Distribution of goods and services. Provide services that make exchange of goods and services more efficient
• Secondary Productions

  • Manufacturing involves many processes in a factory
  • Construction involves building or assembling manufactured parts into a final product
• Production is the provision of goods and services to satisfy needs and wants
• Quaternary activities are economic activities based on intellectual or knowledge-based economy
• Quaternary activities

  Adding value to raw materials by intellectual enhancement
• Commercial services are services that are concerned with distribution
• Primary Industries

  • Mining
  • Quarrying
  • Drilling
  • Farming
  • Forestry
  • Fishing
• Occupations

  • Coal Miner
  • Stone Blaster
  • Oil driller
  • Farmer
  • Lumberjack
  • Fisherman
• Direct services are services that are given directly to the person receiving them with no other service provider involved
• Manufacturing


  Changing raw materials into semi-finished or finished goods
• Banks


  1. Offer related banking services such as withdrawals, deposits, or ATMs

  2. Provide finance for trade and commercial activities such as loans or mortgages
• Supply Chain is a network of individuals and companies involved in creating a product and delivering it to the consumer
• Freight forwarders are companies that specialize in moving goods from sellers to buyers either within a country or overseas
• Warehouse

  Goods supplied need to be stored in a warehouse with an efficient stock control system, packaging, and accurate picking of goods
• Logistics

  1. Management of the flow of goods from production to the marketplace or to the consumer

  2. Involves integration of information, purchasing, stock control, warehousing, packaging, transportation, and security

  3. Responsible for geographical reposition of raw materials, semi-finished goods, components, and finished goods
• When a claim is made, compensation is provided, ensuring financial protection for the business
• Transport

  Important so customers do not run out of goods
• Insurance
• Public sectors are organisations that are state-owned and funded by government
• Advantage of being state owned

  1. Provide employment
  2. Some are unattractive to private investors
• Private sectors are part of the economy owned by groups of peoples or individuals
• Disadvantages of being state-owned

  1. Lack of profit incentive