Commerce is about the business world. It can be regarded as the exchange and distribution of goods and services. However, this cannot be achieved without bringing in other services that could aid the process. Investopedia define commerce as “the conduct of trade among economic agents. Generally, commerce refers to the exchange of goods, service or something of value, between businesses or entities”. This is the closest definition for our purpose.
A standard definition of commerce therefore is that it is the process of buying and selling of goods and service with the aid of its ancillary services which are banking and finance, insurance, warehousing, advertising, communication and transportation.
This definition mentioned buying and selling which denotes trading. It could be between entities, communities, states or international. We can say that Commerce is trade and its ancillary services listed above. An understanding of these is the essence of commerce as our study of the subjects would revolve round these linkages.
PRODUCTION AND COMMERCE
Production is the processing of goods and services for consumption or human use. The goods could be cars, food, shoes. clothing and so on. Services are intangibles like teaching or lecturing, legal practice, security, medical, hospitality, musical services etc. Production could also be extractive or constructive.
Extractive Production: is the cultivation of crops, mining of mineral resources, fishing, lumbering etc. This type of productive extract natural products from nature for further processing.
Constructive Production: is the processing of products of the extractive industry or their adaptation to suit the needs of the potential users. This can be done in factories, construction processes of all types.
Produced goods and services need Commerce for their distribution and effective change of ownership. Goods and services are useless unless it gets to the final consumer.
At this juncture, we can say that without commerce, there would be no exchange of goods and services. These exchanges usually have a motive. The first motive was to exchange what we have for something we lack. However, with the advent of present-day monetary system, the motive has shifted to exchanging for profit. This is the emergence of business.