AREAS / PLACE OF BARTER TRADE TODAY
(i) In rural areas where some people sometimes exchange crops for crops during harvesting period or crops for animal products.
(ii) In international trade dealing with exchange of goods for goods.
Importance of commerce
1.Bridges the gap between producers and consumers
Commerce enable producer to inform customers about the goods and services available for sale through advertising or communication.
2. Compensation for losses
Commerce enables business people to get compensation for losses caused by insured risks hence their business continue operating normally.
3. Acquisition for capital
Through commerce businessmen are able to acquire capital is the form of loans from banks.
4. Variety of Goods is enjoyed
Through commerce the public gets a variety of goods and services from different users. People are therefore given a chance to exercise their choice.
5. Creation of employment
Many people are employed in the commercial sector as importers, insurance brokers, wholesalers and retailers hence improving their standards of living.
6. Making goods available
Goods and services are made available to consumers through commerce.
7. Ennglish-swahili/courage” target=”_blank”>courages production
With commerce goods are taken to the final user which makes the production of goods more profitable this innglish-swahili/courage” target=”_blank”>courages producer to produce more.
Why should you learn commerce as a subject/ importance of studying commerce?
(i) Enables you to understand and experience the developments in the world business
(ii) Enables you to acquire the knowledge necessary for running your business in the future.
(iii) Enable you to learn the commercial language used in the day to day commercial transactions.
(iv) Gives you good background knowledge to the study of the subjects like economic, entrepreneurship, business law and accounting.
(v) Helps you to find out the different goods and services available and why prices fluctuate.
NOTE:
DIFFERENCES & SIMILARITIES BETWEEN
COMMERCE & ECONOMICS
Difference between commerce and Economics
(i) Economics is concerned with chief problems arising from the various economic activities on production, exchange, nglish-swahili/distribution” target=”_blank”>distribution, consumption and allocation of resource while commerce is concerned with the process of exchange and nglish-swahili/distribution” target=”_blank”>distribution of goods.
(ii) Economics is very wide since it comprises of study of all economic activities while commerce is a part of economic which comprise the study of commercial occupations only
(iii) Economics is highly interested in analysis of the working system so that economic becomes a highly theoretical study seeking to understand the principals underlying economic activity for instance study of demand & supply while commerce is highly a factual or practical study of various business economic facts example operation of import and export trade, retail and whole sale trade.
Similarities of commerce and Economics
(i) They are both social sciences
(ii) They are both interested in the nglish-swahili/distribution” target=”_blank”>distribution and exchange of goods and services for satisfaction of human wants.
(iii) They are both concerned with economic activities and facts especially money and banking.