Question

Which of the following correctly distinguishes between commerce and trade?

Options

• Commerce involves production, while trade deals with distribution.

• Commerce involves distribution and auxiliary services, while trade focuses on buying and selling goods.

• Trade creates time utility, while commerce creates form utility.

• Commerce is a subset of trade.

Answer 1

Commerce involves distribution and auxiliary services, while trade focuses on buying and selling goods.

Explanation:

• Commerce is a broader concept that encompasses distribution, including the activities that help goods reach consumers (e.g., transport, warehousing, and banking). It also includes auxiliary services that support these activities.
• Trade, on the other hand, specifically refers to the buying and selling of goods. It is a subset of commerce, focusing on the exchange of goods between buyers and sellers.