Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of

goods and services Goods are items that are usually (but not always) tangible, such as pens, physical books, salt, apples, and hats. Services are activities provided by other people, who include architects, suppliers, contractors, technologists, teachers, doc ...

among two or more parties within local, regional, national or international economies. More specifically, commerce is not business, but rather the part of business which facilitates the movement and distribution of finished or unfinished but valuable goods and services from the producers to the end consumers on a large scale, as opposed to the sourcing of raw materials and manufacturing of those goods. Commerce is subtly different from trade as well, which is the final transaction, exchange or transfer of finished goods and services between a seller and an end consumer. Commerce not only includes trade as defined above, but also a series of transactions that happen between the producer and the seller with the help of the auxiliary services and means which facilitate such trade. These auxiliary services include transportation, communication,

warehousing A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, tow ...

, insurance, banking, financial markets, advertising, packaging, the services of commercial agents and agencies, etc. In other words, commerce encompasses a wide array of political, economical, technological, logistical, legal, regulatory, social and cultural aspects of trade on a large scale. From a marketing perspective, commerce creates time and place utility by making goods and services available to the customers at the right place and at the right time by changing their location or placement. Described in this manner, trade is a part of commerce and commerce is a part of business. Commerce was a costly endeavor in the antiquities because of the risky nature of transportation, which restricted it to local markets. Commerce then expanded along with the improvement of transportation systems over time. In the middle ages, long-distance and large-scale commerce was still limited within continents. With the advent of the age of exploration and oceangoing ships, commerce took an international, trans-continental stature. Currently the reliability of international trans-oceanic shipping and mailing systems and the facility of the Internet has made commerce possible between cities, regions and countries situated anywhere in the world. In the 21st century, Internet-based electronic commerce (where financial information is transferred over Internet), and its subcategories such as wireless

mobile commerce The term mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless tech ...

and social network-based social commerce have been and continue to get adopted widely. Legislative bodies and ministries or ministerial departments of commerce regulate, promote and manage domestic and foreign commercial activities within a country. International commerce can be regulated by bilateral treaties between countries. However, after the second world war and the rise of free trade among nations, multilateral arrangements such as the

GATT The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its prea ...

and later the World Trade Organization became the principal systems regulating global commerce. The

International Chamber of Commerce The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. Its over 45 million members in over 100 countries have interests spanning every sec ...

(ICC) is another important organization which sets rules and resolves disputes in international commerce.

Etymology

The English-language word ''commerce'' has been derived from the

Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through the power of the ...

word ''commercium'', from ''com'' ("together") and ''merx'' ("merchandise").

History

Historian Peter Watson and Ramesh Manickam date the history of long-distance commerce from circa 150,000 years ago. In historic times, the introduction of currency as a standardized money facilitated the exchange of goods and services. Banking systems developed in medieval Europe, facilitating financial transactions across national boundaries.

Market Market is a term used to describe concepts such as: *Market (economics), system in which parties engage in transactions according to supply and demand *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an ...

s became a feature of town life, and were regulated by town authorities.

References

{{Authority control Trade

Etymology

History

See also

References