Commerce And Production: Trade And Commerce: Trade (Copy)
Cheat Sheet: 1.1.1 Trade
| Concept | Meaning | Examples | Notes / Differences |
|---|---|---|---|
| Trade | Buying and selling of goods and services | Retail shops, wholesale distribution, import/export | Narrower concept, part of commerce |
| Commerce | Activities that support and enable trade (transport, banking, insurance, advertising, warehousing, communication) | Banking for payments, advertising products, insurance for shipments | Wider concept than trade |
| Difference | Trade = exchange only; Commerce = exchange + support services | Trade = buying a phone; Commerce = advertising, transporting, insuring that phone | Commerce makes trade possible |
| Type of Trade | Definition | Sub-categories | Examples |
|---|---|---|---|
| Home Trade | Buying and selling within a country | Retail: selling to final consumers; Wholesale: selling in bulk to retailers | Retail = supermarkets, shops; Wholesale = Makro, Metro Cash & Carry |
| International Trade | Buying and selling between countries | Exports: goods/services sold to other countries; Imports: goods/services bought from other countries | Exports = Pakistani textiles to UK; Imports = Oil from Saudi Arabia |
| Aspect | Trade | Commerce |
|---|---|---|
| Scope | Limited – exchange only | Broader – includes support services |
| Aim | Exchange of goods and services | Ensuring smooth flow of trade |
| Functions | Retail, wholesale, import, export | Banking, insurance, warehousing, advertising, transport |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Focus | Home Trade | International Trade |
|---|---|---|
| Area | Inside one country | Between different countries |
| Currency | Local currency used | Foreign exchange needed |
| Examples | Grocery shopping in Lahore | Importing iPhones from USA |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Sub-Category | Description | Example |
|---|---|---|
| Retail | Direct to final consumers in small quantities | A pharmacy selling medicines |
| Wholesale | Large quantities to retailers, not directly to consumers | A distributor selling flour sacks to bakeries |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Sub-Category | Description | Example |
|---|---|---|
| Exports | Selling goods/services abroad | Export of Pakistani mangoes |
| Imports | Buying goods/services from abroad | Import of Japanese cars |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course