5 Importance of Commerce is listed and explained in this article. We hope you find it informative and able to satisfy the demands of your research.
5 Importance of Commerce
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In simple words, commerce can be generally defined as the exchange of goods and services and all activities that facilitate business.
It deals majorly with the distribution aspect of a business. When a company produces something, that product is meant to be consumed in one way or the other, and in order for consumption to be facilitated, there must be a proper channel of distribution.
Realistically, without commerce in the world, no one will survive for so long because no one is self-sufficient. No one person can produce all that he or she needs to live life well and it is as a result of this that every human needs to depend on another human in order to succeed.
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Let’s look at a clear example, for you to have an idea of commerce, you needed to visit ProGuide.ng but even though we provide you with the information you need, we also need you to visit our site so that we can stay in business.
ProGuide.ng is not self-sufficient and at the same time, you do not know everything, that is why you need to bookmark our site to get reliable information on whatever topic you may need.
Importance of Commerce
Commerce has so many important and we will look at a few of them in this article:
1. It brings producers and consumers together
Everything that is produced on earth either manually or technologically is made for human consumption. Commerce makes it possible to link consumers and producers through middlemen (retailers and wholesalers) through the aids to trade which ad transport, insurance, communication, technology, etc.
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2. Commerce creates job opportunities
The growth of commerce, industry, and trade has brought about the expansion of agencies that facilitate trade such as advertising, warehousing, banking, transport, media, etc.
And in order for these agencies to function better, they need to employ people to man some available positions and by doing that, many unemployed persons are gainfully employed.
3. It increases the GDP of the nation’s economy as well as creates wealth
As long as there is an increase in the production rate of a company, the income of the national will continually increase.
In developed nations where there is little or no oil, manufacturing industries usually account for nearly 80 percent of the total income of the country.
This helps greatly to earn foreign exchange by virtue of export and duties that are levied on goods that are imported. By doing this, commerce increases the national income and wealth of a nation.
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4. It aids the growth of industrial development
It is with commerce that the smooth distribution of goods and services produced or rendered by industries are properly catered for.
If commerce had not been existence, industries will have found it very difficult to keep up with the pace of operation.
Commerce helps to increase the demand for goods and also helps industries to get raw materials as well as other needed services.
5. Commerce encourages international trade
Through commerce, every individual can secure a fair and equitable distribution of goods all over the world.
With the help of the development of transport and communication, countries all over the world exchange those commodities that are already surplus and earn huge foreign exchange with ease. Commerce ensures the faster economic growth of international trade.
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Having known all of these and many other importance of commerce, it is quite important that commerce is taught even in schools at all levels so that children will grow with that knowledge of the economy and how it works. However, in this article, the importance of commerce has not been exhausted (though it cannot be).