Describe the activities relating to commerce.

Explanation

Commerce includes two types of activities—trade and auxiliaries to trade. It mainly involves activities that bridge the gap between the producers and the sellers. Auxiliaries to trade are activities that facilitate the trading process.


The following are the various auxiliaries to trade.


(a) Banking and finance: Finance is the most important input to run any business. The absence of a banking and finance system can obstruct the free movement of goods. An efficient banking facility ensures the easy and ready availability of cheap credit to businessmen and traders, and thus acts as an auxiliary to trade.


(b) Advertising: It is through advertisements that businessmen are able to reach a large number of potential buyers. Advertisements through television, the Internet, newspapers, the radio and other various media educate the buyers and make them more aware of the goods available. This helps businessmen to increase their sales. Hence, advertisement plays the role of an auxiliary to trade.


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