Last Updated On -16 Aug 2025
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While the term 'commerce' may immediately resonate with many, it's crucial to delve into its origins. Commerce, at its core, denotes trade and commercial services. It encompasses the entire spectrum of distributing goods and services, be it natural resources or the needs and demands of individuals. Understanding its history provides a context for its current state and future developments.
Commerce is a broader concept, including several concepts and features of business and the services involved in the import and export. The following blog will help you understand the importance and functions of commerce.
In simple terms, commerce is the exchange of goods, services, and money between people, businesses, and the government. It is an organized system harboring all the activities related to trade and industry for smooth working.
The origin of commerce is traced back to the barter system, which was localized and started marketplaces and the exchange of currencies. From the 15th century to the early 20th century, trade routes like the Silk Road and several commercial hubs were established. The colonization and rise of trade companies and establishments like the British East India Company led to a global exchange, which was the foundation for modern banking and international markets.
Commerce in India has a rich history, starting with the Indus Valley Civilization, one of the world’s earliest trading civilizations. Cotton, beads, pottery, and spices were mostly traded.
After this, empires like the Mauryan, Gupta, and Mughals kept on the tradition of trade with the introduction of the Silk Route and Maritime Route. The colonial trade period controlled trade for a long time, imposing a heavy duty on commerce and exploiting many resources. A planned economy was established post-independence, leading to reforms and a trade revolution through technology and liberalization.
With the ever-evolving world, E-commerce is creating a revolution. Learn more about it and stay updated!
Commerce has been a popular field of study, offering the best courses after 12th and ushering students to a successful career. Candidates can choose from many options: banking, accounting, management, and entrepreneurship.
The popular branches of commerce are:
Trade is the buying, selling, or exchanging of goods and services between two or more parties. A trade can happen within a country (domestic trade) or between different countries (international trade). The main purpose of the trade is to allow people, businesses, and nations to obtain goods or services they don’t produce themselves.
Related topics to trade:
Imports trade refers to the acquisition or consumption of goods, materials, and services available in foreign nations. |
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Export trade refers to the sale and shipment of goods and services between countries. |
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Retail trade is the small-scale direct sale of goods and services for personal or household use, straight to customers. |
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The trade lifecycle refers to the process that a financial transaction undergoes from the point a trade is executed to the point at which it is completely settled and reported. |
Finance is the management of money and other financial resources. This involves activities like earning, saving, investing, borrowing, and spending to achieve personal, business, or government goals. Finance is mainly about how money flows, ie, where it comes from, how it's used, and how it can grow over time.
Related topics to finance:
The Global Financial Crisis (2007–2009) was a time when the world economy slowed down, which hurt banks, businesses, and people in many countries. |
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The Basel Norms are the global standards for safe banking procedures, not merely financial rules. |
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Depending on the source, use, and users, finance can be generally divided into many forms. |
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Deficit financing is the method whereby a government borrows or generates fresh money to fill the difference between its expenditure greater than income. |
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In accounting, "debit" and "credit" are more than just words used on your bank statement. |
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Among the most basic ideas in accounting and finance are assets and liabilities |
The process of marketing includes selling, promoting, and distributing products and services. Products have to be properly advertised and sold whilst also catering to the demands of the customer. Furthermore, marketing also includes the conducting of market research, advertising, branding, and soliciting of relationships.
Related topics to the Marketing concept:
In the current digital era, agricultural marketing is a form of crop product sale. |
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Marketing management is the process of planning, coordinating, controlling, and executing marketing activities to meet customer needs and achieve business objectives. |
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Market price, factor cost, and basic price are some of the most commonly used terms in economics. |
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National currencies are exchanged against one another on the worldwide Foreign Exchange Market. |
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A monopoly is a type of market in which one seller controls the whole supply of a good or service without any near substitutes. |
This pertains to the existing laws that regulate the transacting of businesses and is related to the rest of the economic world. This pertains to contracts, the formation of companies, intellectual property, business taxation, resolving business disputes, and many other areas.
The related topics to business law are given below:
CSR is a development strategy that seeks to reconcile a business with the social environment as it integrates social, ethical, and environmental concerns with business activities. |
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The Articles of Association are essentially a company's guide to running a business and following the law. |
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Knowledge of key statutes, sometimes known as "laws in commerce," guarantees you can properly arrange deals, counsel clients |
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Usually used for internal communication inside an organization, a memorandum—also known as a memo—is a concise, official instrument. |
Entrepreneurship includes the innovator, founder, and owner of the business who is willing to spend and take financial risks on a business that will, hopefully, provide a return and income. Entrepreneurs, in simple terms, observe gaps in the market, provide a solution, and introduce it to the market.
The related topics to Entrepreneurship are:
The Entrepreneurship Development Process has been around for centuries. |
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Business strategy is the framework of action or decision-making guides that helps a company reach its long-term goals |
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Managerial Economics, sometimes referred to as business economics, is the application of economic ideas and techniques |
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Business correspondence is any written communication that two or more people have for formal reasons. |
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Business finance is the money and credit employed in the business. |
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A business organization is the framework on which the organization operates. |
There are a lot of professional degree courses to pursue, which are tailor-made for you, providing the right amount of skill and guidance in different sectors, with a chance to work globally.
The list of professional courses in the field of commerce is:
While commerce, trade, and business are often used interchangeably, they are distinct concepts with their own unique characteristics. Understanding these differences can provide you with a deeper insight into the world of commerce.
Trade is a part of commerce, and commerce is a business feature.
The basic differences between commerce, trade, and business are:
Commerce |
Trade |
Business |
The large-scale exchange of goods, services, and money |
Buying and selling of goods and services between entities |
Any enterprise created to earn money |
Includes trade, finance, banking, and investment |
Focuses only on exchange |
Includes production, distribution, and all the services |
Looks over the smooth flow of trade and business |
Goods and services to meet demand |
Generation of profit through all the activities |
E-commerce platforms, banking services |
Wholesale & retail |
Manufacturing, retail, startups |
Commerce, by facilitating the smooth flow of businesses, not only drives economic growth and helps consumers access various products and services but also plays a significant role in job creation. It is a key driver of employment opportunities, making it an integral part of the economy.
Commerce is broadly classified into:
The difference between commerce and business is
Commerce |
Business |
The large-scale exchange of goods, services, and money |
Any enterprise created to earn money |
Includes trade, finance, banking, and investment |
Provides production, distribution, and all the services |
Looks over the smooth flow of trade and business |
Generation of profit through all the activities |
E-commerce platforms, banking services |
Manufacturing, retail, startups |