without commerce, which helps the transfer of goods from the original producer to the final consumer, this businesses would not be succesful and only few goods would reach the final consumer. commercial services are therefore important at all stages of production.
if no goods were produced there would be no need for the commercial activity. so industry and commerce are interelated and dependant on each other. this can be explained more clearly with the help with some examples
- raw materials are extracted
- the factory orders raw materials transported into a factory (using communication)
- the factory owner is buying the raw materials and pays for them using finance (trade)
- goods are manufactured distributed to whole salers and retailers
- goods may be sold abroad (export trade)
- raw materials may be bought from another country (import trade)
- the retailers imforms consumer and persuades them to buy (advertising)
- goods are kept by the wholesaller or retailer (storage in a ware house)
- risk of extracting raw materials, risk of accidents in factories, risk of fire in warehouses or theaft from shops must be covered. (insurance)
- the consumer pays the retailers using banking services
- the retailer use a bank to save guard the money and may want a loan to expand the shop (finance)
the interdependance of individuals and of countries aswell as industry and commerce has increased for several reasons. the developments in commercial activities such as communication and transport has speaded up the transaction. the impact on commercial activity of computer technology and the internet has made it far easier to keep in contact with other bussineses. the growth of a world wide financial system has made it easier to pay across the continents. perhaps, more difficult to see how direct services are interelated with industry and commerce. most bussines people both in industry and commerce require several direct services without which their bussines would not prosper.
here are some examples:
- architects to prepare drawings for a new factory
- surveyers -> to examine the sight of the factory and to calculate the materials required
- lawyers -> to draw up any legal documents if any land is purchased
- accountants -> to prepare the accounts of the bussines and to eudit those accounts
- security guards -> to protect the bussines againts thief and to look after the property after working hours
- doctors and nurses to attend any accidents at the work place
- police to deal with any disturbance or demonstration outside the bussines
- local goverment officials to consider planning application from bussineses and to handle complains from the public about poor quality goods or services
- the fire services to attend an emergency on bussines premisses
- businesses involved in industry and commerce may not require direct personal services at all times but for particular purposes they are very necessary. however, people who provide direct personal services may require many different types of tools or goods which they are unable to provide themselves.
- they would require the commercial services to provice these goods to them, they may also require the commercial services to make them aware for goods produced for sale. so we can say direct services, commerce and industry are interdependent and interelated to each other.
common learners errors
- confusion between tertiary and direct services and between commercial and direct services. remember that tertiary services includes direct services which are directed at the person receiving them.
- communication describes as the transport of goods.
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