Commerce is concerned with facilitating the exchange of goods and services in the economy. It is sub-classified as trade and auxiliaries to trade. Many think that trade and commerce are the same terms and can be used interchangeably.
But the fact is both the terms are different from each other and carry different meanings. Trade simply means buying and selling of goods and services in return for money or money’s worth.
The scope of commerce is wider than that of trade, which not only refers to the exchange of goods and services but also includes all those activities that are vital for the completion of that exchange. To further comprehend the understanding of these two terms the basic comparison is given below:
Content: Trade Vs Commerce
- Comparison Chart
- Definition
- Key Differences
- Conclusion
Comparison Chart
| Basis for Comparison | Trade | Commerce |
|---|---|---|
| Meaning | Trade means the exchange of goods and services between two or more parties in consideration of money or money’s worth. | Commerce means exchange of goods and services between the parties along with the activities such as insurance, transportation, warehousing, advertising etc that completes that exchange. |
| Scope | Narrow | Wide |
| Type of Activity | Social Activity | Economic Activity |
| Frequency of Transactions | Isolated | Regular |
| Employment opportunities | No | Yes |
| Link | Between buyer and seller | Between producer and consumer |
| Demand and supply side | Represents both | Represents only the demand side |
| Capital requirement | More | Less |
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