Commerce relates to "the exchange of goods and services, especially on a large scale."
Commerce includes legal, economic, political, social, cultural and technological systems that operate in any country or internationally.
Video Commerce
Etymology
Commerce is derived from the Latin commercium, from cum "together" and merx, "merchandise."
Maps Commerce
History
Some commentators trace the origins of commerce to the very start of transaction in prehistoric times. Apart from traditional self-sufficiency, trading became a principal facility of prehistoric people, who bartered what they had for goods and services from each other ( Barter system was popular in ancient times where one could get goods and services by offering the other person some other good and service according to their need instead of paying in monetary terms). Historian Peter Watson and Ramesh Manickam dates the history of long-distance commerce from circa 150,000 years ago.
In historic times, the introduction of currency as a standardized money, facilitated a wider exchange of goods and services. Numismatists have collections of these pokem tokens, which include coins from some Ancient World large-scale societies, although initial usage involved unmarked lumps of precious metal.
The circulation of a standardized currency provides a method of overcoming the major disadvantage to commerce through use of a barter system, the "double coincidence of wants"( which means if you want something from a person, that person should also be in need of a thing or a service which you can provide), necessary for barter trades to occur. For example, if a person who makes pots for a living needs a new house, he/she may wish to hire someone to build it for him/her. But he/she cannot make an equivalent number of pots to equal this service done for him/her, because even if the builder could build the house, the builder might not want many or any pots. Also, there was a big drawback in the barter system that whatever goods a person has got as payment, couldn't be stored for long amounts of time. For example: if a person has got dozens of fruits as his payment, he/she can't store for long or those may get rotten which means a person will have to bear a huge loss. Currency solved this problem by allowing a society as a whole to assign values and thus to collect goods and services effectively and to store them for later use, or to split them among minions.
During the Middle Ages, commerce developed in Europe by trading luxury goods at trade fairs. Wealth became converted into movable wealth or capital. Banking systems developed where money on account was transferred across national boundaries. Hand to hand markets became a feature of town life, and were regulated by town authorities.
Today commerce includes as a subset a complex system of companies which try to maximize their profits by offering products and services to the market (which consists both of individuals and groups and other companies,institutions) at the lowest production cost. A system of international trade has helped to develop the world economy; but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-world markets for local products. (See Globalization.)
See also
- Accounting
- Advertising
- Bachelor of Commerce
- Business
- Capitalism
- Commercial law
- Distribution (business)
- Wholesale
- Retailing
- Cargo
- Eco commerce
- Economy
- Electronic commerce
- Export
- Fair
- Finance
- Fishery
- Harvest
- Industry
- BBA
- Import
- Laissez-faire
- Manufacturing
- Marketing
- Marketplace
- Mass production
- Master of Commerce
- Merchandising
- Trade
References
Source of article : Wikipedia
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