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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 among two or more parties within local, regional, national or international economies. More specifically, commerce is not
business
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
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
communication
, warehousing,
insurance
insurance
, banking, financial markets, advertising,
packaging
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 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 and later the World Trade Organization became the principal systems regulating global commerce. The International Chamber of Commerce (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 languages, 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 ...

Latin
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
currency
as a standardized
money
money
facilitated the exchange of goods and services. Banking systems developed in medieval Europe, facilitating financial transactions across national boundaries.
Market
Market
s became a feature of town life, and were regulated by town authorities.


See also

* Bachelor of Business Administration * Bachelor of Commerce * Master of Commerce * Doctor of Commerce *
Business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
*
Capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, pr ...
*
Commercial law Commercial law, also known as mercantile law or trade law, is the body of law that applies to the rights, relations, and conduct of persons and business engaged in commerce Commerce is the large-scale organized system of activities, functio ...
*
Advertising Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a ...
*
Distribution (business) Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service p ...
**
Wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. I ...
**
Retailing Retail is the sale of goods and Service (economics), services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturing, manufacturers, dire ...
*
Cargo Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for Commerce, commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, includ ...
* Eco commerce *
Economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
*
Electronic commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of Product (business), products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, su ...
*
Export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is a ...
*
Fair A fair (archaic: faire or fayre) is a gathering of people for a variety of entertainment or commercial activities. Fairs are typically temporary with scheduled times lasting from an afternoon to several weeks. Types Variations of fairs incl ...
*
Financial planning (business) Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The financial plan de ...
*
Fishery Fishery can mean either the enterprise of raising or harvesting fish and other aquatic life; or more commonly, the site where such enterprise takes place ( a.k.a. fishing ground). Commercial fisheries include wild fisheries and fish farms ...
*
Harvest Harvesting is the process of gathering a ripe crop from the field (agriculture), fields. Reaping is the cutting of grain or pulse (legume), pulse for harvest, typically using a scythe, sickle, or reaper. On smaller farms with minimal mechaniz ...
*
Import An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited ...
*
Laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as Subsidy, subsidies) deriving from special interest ...
*
Manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary secto ...
*
Market (economics) In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in Exchange (economics), exchange. While parties may exchange goods and services by barter, most markets rel ...
*
Marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...
*
Marketplace A marketplace or market place is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. In different parts of the world, a marketplace may be described as a ''souk'' (from the Arabic lang ...
*
Mass production Mass production, also known as flow production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and batch ...
* Master of Commerce *
Merchandising Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customers to purchase more ...
*
Roman commerce Roman commerce was a major sector of the Roman economy during the later generations of the Roman Republic, Republic and throughout most of the Roman Empire, imperial period. Fashions and trends in historiography and in popular culture have tended ...
*
Trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market (economics), market. An early form of trade, barter, s ...
*
International trade International trade is the exchange of Capital (economics), capital, goods, and Service (economics), services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countr ...
*
Value (economics) In economics, economic value is a measure of the benefit provided by a goods, good or service (economics), service to an Agent (economics), economic agent. It is generally measured through units of currency, and the interpretation is therefore ...


References

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