Question

Justify the following statement.

Commerce is a wider term than trade.

Answer 1

1. Commerce is a part of business. Business is divided into two parts, industry and commerce.
2. Commerce is concerned with the distribution of goods. It is further divided into trade and auxiliaries to trade.
3. Trade involves the buying and selling of goods and services, while auxiliaries to trade include services like transport, banking, insurance, warehousing, and advertising that help in the smooth functioning of trade.

Thus, commerce includes both trade and services that facilitate trade, which clearly shows that commerce is a wider term than trade.