Commerce | Meaning, Importance, Stages, Obstacles, Factors, Divisions

Meaning of Commerce: Commerce encompasses the examination of the production, distribution, and exchange of goods and services to meet human needs and sustain livelihoods.   The Significance (Roles) of Commerce: Creation of employment opportunities for individuals. Facilitation of the production and exchange of goods and services. Enhancement of the standard of living by making modern […]

Meaning of Commerce:

Commerce encompasses the examination of the production, distribution, and exchange of goods and services to meet human needs and sustain livelihoods.

 

The Significance (Roles) of Commerce:

  1. Creation of employment opportunities for individuals.
  2. Facilitation of the production and exchange of goods and services.
  3. Enhancement of the standard of living by making modern goods accessible.
  4. Promotion of national and international cooperation by fostering interdependence among nations.
  5. Support for the division of labor and specialization.
  6. Introduction of technological innovation and assistance in infrastructural development.

 

Historical Stages of Commerce Development:

  1. Earliest Period: Subsistent nature of production.
  2. Barter system for exchanging goods and services.
  3. Use of commodity money for trade.
  4. Introduction of money in the form of notes and coins for exchange.
  5. Progress in aids to trade.

 

Obstacles to Commerce Development in Nigeria/West Africa:

  1. Political instability.
  2. Low savings.
  3. Absence of developed markets.
  4. Poor communication systems.
  5. Illiteracy.
  6. Inadequate capital.
  7. Low level of technology.
  8. Inadequate/poor infrastructural facilities.
  9. Low national income.

 

Factors Fueling Commerce Growth in Nigeria/West Africa:

  1. Adoption of modern production techniques.
  2. Political stability.
  3. Development of financial institutions.
  4. Enhancement of transportation and communication systems.
  5. Availability of warehousing facilities.
  6. Improvements in aids to trade such as insurance and advertising.
  7. Advancements in education and literacy levels.

 

Divisions of Commerce:

Commerce can be broadly categorized into two main branches: Trade and Aids to Trade. Aids to trade further include:

(a) Transport

(b) Insurance

(c) Banking and Finance

(d) Advertising

(e) Warehousing

(f) Communication

(g) Tourism

Related Posts:

Retailing

Large Scale Retailing | Multiple Shops, Departmental Stores, Supermarket

Small Scale Retailing

Retail Trade | Meaning, Characteristics, Functions, Factors, Reasons

Division of Labour | Meaning, Advantages, Disadvantages, Limitations

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top