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What is Commerce?

Last Updated On -22 Feb 2025

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.

What is the Meaning of Commerce?

In simple terms, commerce is the exchange of goods, services, and money between people, businesses, and government. It is an organized system harboring all the activities related to trade and industry for smooth working.

History of Commerce

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.

Branches of Commerce

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: Domestic and International

Finance: Banking, investment and financial management

Marketing: Selling and promoting products and businesses

Business Law: Legal and compliance-related issues

Entrepreneurship: Opening a new venture and bringing a revolution in the existing market is entrepreneurship

Professional Commerce Courses

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:

Difference between Commerce Trade and Business

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

Frequently Asked Questions ( FAQs )

How is commerce important in daily life?

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.

What is the classification of commerce?

Commerce is broadly classified into:

Trade: Buying and selling of goods
Aids to Trade: Activities supporting trade, such as insurance and advertising

What is the difference between commerce and business?

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