MEANING OF COMMERCE

Actualy commerce is another part of business.It refers to the act of distributing of goods and services to the consumers according to their needs and wants.Traditionally,commerce is also being used in large area nowadays.It means, along with buying and selling of goods its also involves providingall other management sevices like transportation,insurance,banking and communication.Management of these services help to carry products from the industry to consumer.

So in conclusion,we can say that commerce is the organized system of buying and selling of goods with all activities,which help to perform trade .It is divided into two types discussed below.

(1)Trade : Trade refers to the act of bying and selling of goods with a view to earn profit.It is the mediator in between the producer and consumer.It is involved in buying goods from the producer and selling them to the consumers without changing the shape and size of goods.The people involved in performing trade are called traders.It is classified as home trade and foreign trade.

(a)Home trade : The act of buying and selling goods with in a boundry of a country for profit is called home trade.The trade performed in between buyers and sellers of kathmandu and biratnagar falls under home trade it is further divided into the following types:

-Wholesale trade : Whole sale trade refers to the act of buying in large quantity directly from producers and selling them to the retailor.It plays a role of mediator in between the producer and the retailor.People involved in performing wholesale trade are wholesalers.Wholesalers do not usually sell goods to final consumer directly.

-Retail trade : Retail trade refers to the act of buying goods from wholesalers and selling them to the final consumer.Here goods are solid for final consumption but not for the resale perpose .It plays the role of meaditor in between the wholesaler and the final consumer.People involved in performing retail trade are retailors.

(b)Foreign trade : the act of buying and selling of goods in between at least two countrier and more than that for profit is called foreign trade.The main feature of this trade is that goods produced in one country are sold and consumed in another country.Here the words import and export are used to indicate the words buy and sell of goods,respectively.Trade conducted in between nepal and america come under this type.It is further divided into the following types:

-Emport trade : It refers to the act of buying goods from a foreign country.The trader who buys goods from a foreign country us called importer.Its a trader of nepal purchases machinary from japan then it is said to be import trade.

-Export trade : It refers to the act of selling goods to foreign country.The trader who supplies goods to foreign country is called exporter.If a nepalese trader supplies handcraft to aamerica then it is export trade.

-Enterport trade : It refers to the act of importing goods from one country and exporting the same to a third country.So,here the trade is conducted at least among three countries.It our country imports readymade cloths from china and exports the same to india it is enterport trade.

(2)Management service : It refers to the act of providing and selling different that facilitate trade.It is not involved in buying and selling of tangible goods but provides easily.Services of banking,insurance,transportation,communication,advertising,warehousing are some example of management service.