O LEVEL COMMERCE – DETAILED EXAM 3. ENTREPOT TRADE – IMPORTING GOODS AND RE-
EXPORTING THEM
REVISION NOTES
CHAPTER: INTRODUCTION TO TRADE AND COMMERCE 1.1 ADVANTAGES OF INTERNATIONAL TRADE
• WIDER MARKET
1. MEANING OF TRADE AND COMMERCE • MORE CHOICES FOR CONSUMERS
TRADE • EARNS FOREIGN EXCHANGE
TRADE IS THE BUYING AND SELLING OF GOODS AND SERVICES FOR • ENCOURAGES SPECIALIZATION
PROFIT.
TYPES OF TRADE DISADVANTAGES
1. HOME TRADE – TRADE WITHIN ONE COUNTRY • CURRENCY FLUCTUATIONS
2. INTERNATIONAL TRADE – TRADE BETWEEN COUNTRIES • POLITICAL RISKS
IMPORTANCE OF TRADE • MORE TRANSPORT COSTS
• SATISFIES HUMAN WANTS • COMPLICATED PROCEDURES
• CREATES EMPLOYMENT
• INCREASES BUSINESS PROFITS DIFFERENCE BETWEEN HOME AND INTERNATIONAL TRADE
• IMPROVES LIVING STANDARDS HOME TRADE INTERNATIONAL TRADE
WITHIN ONE COUNTRY BETWEEN COUNTRIES
COMMERCE
COMMERCE INCLUDES ALL ACTIVITIES THAT HELP TRADE TAKE SAME CURRENCY DIFFERENT CURRENCIES
PLACE SMOOTHLY. FEWER RISKS MORE RISKS
IT CONNECTS: EASIER COMMUNICATION LANGUAGE BARRIERS MAY EXIST
• PRODUCERS LESS DOCUMENTATION MORE DOCUMENTATION
• WHOLESALERS
• RETAILERS 3. AIDS TO TRADE
• CONSUMERS AIDS TO TRADE ARE SERVICES THAT HELP TRADE FUNCTION
COMMERCE INCLUDES EFFICIENTLY.
• TRADE THE SIX AIDS TO TRADE
• AIDS TO TRADE 1. TRANSPORT
2. COMMUNICATION
DIFFERENCE BETWEEN TRADE AND COMMERCE
3. BANKING
TRADE COMMERCE 4. INSURANCE
BUYING AND SELLING 5. WAREHOUSING
HELPS TRADE OCCUR SMOOTHLY
GOODS 6. ADVERTISING
MAIN ACTIVITY IS MAIN ACTIVITY IS DISTRIBUTION AND
EXCHANGE SUPPORT 3.1 TRANSPORT
TRANSPORT MOVES GOODS AND PEOPLE FROM ONE PLACE TO
NARROW CONCEPT WIDER CONCEPT
ANOTHER.
PART OF COMMERCE INCLUDES TRADE AND AIDS TO TRADE TYPES OF TRANSPORT
EASY FORMULA • ROAD
COMMERCE = TRADE + AIDS TO TRADE • RAIL
• AIR
2. HOME TRADE AND INTERNATIONAL TRADE • WATER
HOME TRADE • PIPELINE
TRADE CONDUCTED WITHIN THE BOUNDARIES OF ONE COUNTRY.
FEATURES IMPORTANCE OF TRANSPORT
• SAME CURRENCY • CONNECTS PRODUCERS AND CONSUMERS
• SAME LANGUAGE (MOSTLY) • ENABLES INTERNATIONAL TRADE
• FEWER LEGAL RESTRICTIONS • REDUCES DELAYS
• EASIER TRANSPORT AND COMMUNICATION • EXPANDS MARKETS
TYPES OF HOME TRADE
1. WHOLESALE TRADE ADVANTAGES AND DISADVANTAGES
2. RETAIL TRADE ADVANTAGES DISADVANTAGES
FAST MOVEMENT OF GOODS EXPENSIVE SOMETIMES
INTERNATIONAL TRADE
TRADE BETWEEN DIFFERENT COUNTRIES. WIDER MARKET ACCESS TRAFFIC AND DELAYS
TYPES SUPPORTS TRADE GROWTH FUEL COSTS
1. IMPORT TRADE – BUYING FROM ANOTHER COUNTRY
2. EXPORT TRADE – SELLING TO ANOTHER COUNTRY
,3.2 COMMUNICATION • STORES SEASONAL GOODS
COMMUNICATION MEANS SENDING AND RECEIVING • PROTECTS GOODS FROM DAMAGE
INFORMATION.
METHODS 3.6 ADVERTISING
• TELEPHONE ADVERTISING INFORMS CUSTOMERS ABOUT PRODUCTS AND
• EMAIL SERVICES.
• INTERNET OBJECTIVES
• VIDEO CONFERENCING • INCREASE SALES
• SOCIAL MEDIA • CREATE AWARENESS
• ATTRACT CUSTOMERS
IMPORTANCE • BUILD BRAND IMAGE
• FASTER BUSINESS DECISIONS
• BETTER COORDINATION TYPES OF ADVERTISING
• IMPROVES CUSTOMER SERVICE • TELEVISION
• SUPPORTS ONLINE BUSINESS • NEWSPAPER
• RADIO
3.3 BANKING • ONLINE ADVERTISING
BANKS PROVIDE FINANCIAL SERVICES TO INDIVIDUALS AND • BILLBOARD ADVERTISING
BUSINESSES.
SERVICES PROVIDED BY BANKS ADVANTAGES
• ACCEPT DEPOSITS • INCREASES DEMAND
• GIVE LOANS • EDUCATES CONSUMERS
• TRANSFER MONEY • HELPS BUSINESSES COMPETE
• PROVIDE OVERDRAFTS
• FOREIGN EXCHANGE SERVICES DISADVANTAGES
• EXPENSIVE
IMPORTANCE OF BANKING • CAN MISLEAD CONSUMERS
• PROVIDES FINANCE FOR BUSINESSES
• SAFE HANDLING OF MONEY 4. LOGISTICS AND SUPPLY CHAIN
• ENCOURAGES SAVINGS MEANING OF LOGISTICS
• FACILITATES TRADE PAYMENTS LOGISTICS IS THE MANAGEMENT OF MOVEMENT AND STORAGE OF
GOODS.
EXAMPLES
• HBL SUPPLY CHAIN
• MEEZAN BANK THE SUPPLY CHAIN IS THE JOURNEY OF A PRODUCT FROM
• STANDARD CHARTERED PRODUCER TO CONSUMER.
FLOW
3.4 INSURANCE RAW MATERIALS → PRODUCTION → WAREHOUSING →
INSURANCE PROTECTS BUSINESSES FROM LOSSES AND RISKS. TRANSPORT → RETAILER → CONSUMER
TYPES OF INSURANCE
• FIRE INSURANCE ELEMENTS OF LOGISTICS
• MARINE INSURANCE 1. TRANSPORTATION
• THEFT INSURANCE 2. WAREHOUSING
• LIFE INSURANCE 3. PACKAGING
4. INVENTORY CONTROL
IMPORTANCE 5. ORDER PROCESSING
• REDUCES FINANCIAL LOSS
• GIVES CONFIDENCE TO BUSINESSES IMPORTANCE OF LOGISTICS
• PROTECTS PROPERTY AND GOODS • REDUCES COSTS
• IMPROVES EFFICIENCY
3.5 WAREHOUSING • ENSURES TIMELY DELIVERY
WAREHOUSING MEANS STORING GOODS SAFELY UNTIL NEEDED. • INCREASES CUSTOMER SATISFACTION
FUNCTIONS OF WAREHOUSING
• STORAGE
• PROTECTION 5. TYPES OF COMMERCE
• PRICE STABILIZATION
• PREVENTS SHORTAGES 5.1 TRADITIONAL COMMERCE
BUYING AND SELLING THROUGH PHYSICAL SHOPS.
IMPORTANCE FEATURES
• HELPS CONTINUOUS SUPPLY • FACE-TO-FACE INTERACTION
, • PHYSICAL INSPECTION POSSIBLE ACTIVITIES HELPING TRADE.
ADVANTAGES
• IMMEDIATE DELIVERY RELATIONSHIP
• BETTER CUSTOMER TRUST STEP 1
DISADVANTAGES PRODUCTION CREATES GOODS.
• LIMITED MARKET STEP 2
• HIGHER OPERATING COSTS TRADE EXCHANGES GOODS.
STEP 3
5.2 E-COMMERCE COMMERCE SUPPORTS DISTRIBUTION.
BUYING AND SELLING THROUGH THE INTERNET.
EXAMPLES FLOW CHART
• AMAZON PRODUCTION → TRADE → COMMERCE → CONSUMERS
• DARAZ
IMPORTANT KEYWORDS FOR EXAMS
ADVANTAGES • DISTRIBUTION
• 24/7 SHOPPING • CONSUMERS
• GLOBAL CUSTOMERS • SUPPLIERS
• LOWER BUSINESS COSTS • MARKET
• PROFIT
DISADVANTAGES • EFFICIENCY
• FRAUD RISK • RISK
• CYBERCRIME • CUSTOMER SATISFACTION
• DELIVERY DELAYS • TRANSPORTATION
• FINANCE
5.3 M-COMMERCE
ELECTRONIC COMMERCE USING MOBILE DEVICES. QUESTION & ANSWER SESSION
EXAMPLES SHORT QUESTIONS
• MOBILE BANKING Q1. WHAT IS TRADE?
• SHOPPING APPS TRADE IS THE BUYING AND SELLING OF GOODS AND SERVICES FOR
PROFIT.
ADVANTAGES
• CONVENIENCE Q2. WHAT IS COMMERCE?
• QUICK PAYMENTS COMMERCE INCLUDES TRADE AND ALL ACTIVITIES THAT HELP
TRADE TAKE PLACE SMOOTHLY.
DISADVANTAGES
• INTERNET DEPENDENCY Q3. NAME THE SIX AIDS TO TRADE.
• SECURITY ISSUES 1. TRANSPORT
2. COMMUNICATION
5.4 S-COMMERCE (SOCIAL COMMERCE) 3. BANKING
BUYING AND SELLING USING SOCIAL MEDIA PLATFORMS. 4. INSURANCE
EXAMPLES 5. WAREHOUSING
• INSTAGRAM STORES 6. ADVERTISING
• FACEBOOK MARKETPLACE
• TIKTOK SHOPS Q4. WHAT IS HOME TRADE?
TRADE CONDUCTED WITHIN ONE COUNTRY.
ADVANTAGES
• DIRECT CUSTOMER INTERACTION Q5. WHAT IS INTERNATIONAL TRADE?
• LOW-COST MARKETING TRADE BETWEEN DIFFERENT COUNTRIES.
DISADVANTAGES Q6. WHAT IS LOGISTICS?
• SCAMS LOGISTICS IS THE MANAGEMENT OF MOVEMENT AND STORAGE OF
• TRUST ISSUES GOODS.
6. RELATIONSHIP BETWEEN PRODUCTION, TRADE AND Q7. WHAT IS WAREHOUSING?
COMMERCE WAREHOUSING MEANS STORING GOODS SAFELY UNTIL NEEDED.
PRODUCTION
MAKING GOODS AND SERVICES. Q8. WHAT IS E-COMMERCE?
TRADE BUYING AND SELLING GOODS THROUGH THE INTERNET.
BUYING AND SELLING GOODS.
COMMERCE EXPLAIN QUESTIONS
, Q9. WHY IS TRANSPORT IMPORTANT IN COMMERCE?
TRANSPORT MOVES GOODS FROM PRODUCERS TO CONSUMERS
QUICKLY AND EFFICIENTLY. IT EXPANDS MARKETS AND SUPPORTS
LOCAL AND INTERNATIONAL TRADE.
Q10. WHY DO BUSINESSES NEED BANKS?
BANKS PROVIDE LOANS, MONEY TRANSFER SERVICES, AND SAFE
STORAGE OF MONEY. THEY HELP BUSINESSES FINANCE
OPERATIONS AND TRADE ACTIVITIES.
Q11. WHY IS ADVERTISING IMPORTANT?
ADVERTISING INFORMS CUSTOMERS ABOUT PRODUCTS, INCREASES
SALES, AND HELPS BUSINESSES COMPETE IN THE MARKET.
Q12. EXPLAIN THE RELATIONSHIP BETWEEN PRODUCTION, TRADE
AND COMMERCE.
PRODUCTION CREATES GOODS, TRADE EXCHANGES THEM, AND
COMMERCE HELPS DISTRIBUTE THEM TO CONSUMERS EFFICIENTLY .
ADVANTAGES AND DISADVANTAGES QUESTIONS
Q13. STATE TWO ADVANTAGES OF E-COMMERCE.
1. SHOPPING IS AVAILABLE 24/7
2. BUSINESSES CAN REACH GLOBAL MARKETS
Q14. STATE TWO DISADVANTAGES OF INTERNATIONAL TRADE.
1. CURRENCY FLUCTUATIONS
2. HIGH TRANSPORT COSTS
Q15. STATE TWO FUNCTIONS OF WAREHOUSING.
1. STORES GOODS SAFELY
2. PREVENTS SHORTAGES
LONG QUESTIONS
Q16. EXPLAIN THE IMPORTANCE OF INSURANCE TO BUSINESSES.
INSURANCE PROTECTS BUSINESSES FROM RISKS SUCH AS FIRE,
THEFT, AND ACCIDENTS. IT REDUCES FINANCIAL LOSSES AND GIVES
BUSINESSES CONFIDENCE TO OPERATE SAFELY.
Q17. EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF
ADVERTISING.
ADVANTAGES
• INCREASES SALES
• CREATES AWARENESS
• HELPS COMPETITION
DISADVANTAGES
• EXPENSIVE
• MAY MISLEAD CUSTOMERS
FINAL ONE-LINE SUMMARY
COMMERCE HELPS TRADE BY USING SERVICES SUCH AS
TRANSPORT, BANKING, COMMUNICATION, INSURANCE,
WAREHOUSING, AND ADVERTISING TO MOVE GOODS FROM
PRODUCERS TO CONSUMERS EFFICIENTLY.
EXPORTING THEM
REVISION NOTES
CHAPTER: INTRODUCTION TO TRADE AND COMMERCE 1.1 ADVANTAGES OF INTERNATIONAL TRADE
• WIDER MARKET
1. MEANING OF TRADE AND COMMERCE • MORE CHOICES FOR CONSUMERS
TRADE • EARNS FOREIGN EXCHANGE
TRADE IS THE BUYING AND SELLING OF GOODS AND SERVICES FOR • ENCOURAGES SPECIALIZATION
PROFIT.
TYPES OF TRADE DISADVANTAGES
1. HOME TRADE – TRADE WITHIN ONE COUNTRY • CURRENCY FLUCTUATIONS
2. INTERNATIONAL TRADE – TRADE BETWEEN COUNTRIES • POLITICAL RISKS
IMPORTANCE OF TRADE • MORE TRANSPORT COSTS
• SATISFIES HUMAN WANTS • COMPLICATED PROCEDURES
• CREATES EMPLOYMENT
• INCREASES BUSINESS PROFITS DIFFERENCE BETWEEN HOME AND INTERNATIONAL TRADE
• IMPROVES LIVING STANDARDS HOME TRADE INTERNATIONAL TRADE
WITHIN ONE COUNTRY BETWEEN COUNTRIES
COMMERCE
COMMERCE INCLUDES ALL ACTIVITIES THAT HELP TRADE TAKE SAME CURRENCY DIFFERENT CURRENCIES
PLACE SMOOTHLY. FEWER RISKS MORE RISKS
IT CONNECTS: EASIER COMMUNICATION LANGUAGE BARRIERS MAY EXIST
• PRODUCERS LESS DOCUMENTATION MORE DOCUMENTATION
• WHOLESALERS
• RETAILERS 3. AIDS TO TRADE
• CONSUMERS AIDS TO TRADE ARE SERVICES THAT HELP TRADE FUNCTION
COMMERCE INCLUDES EFFICIENTLY.
• TRADE THE SIX AIDS TO TRADE
• AIDS TO TRADE 1. TRANSPORT
2. COMMUNICATION
DIFFERENCE BETWEEN TRADE AND COMMERCE
3. BANKING
TRADE COMMERCE 4. INSURANCE
BUYING AND SELLING 5. WAREHOUSING
HELPS TRADE OCCUR SMOOTHLY
GOODS 6. ADVERTISING
MAIN ACTIVITY IS MAIN ACTIVITY IS DISTRIBUTION AND
EXCHANGE SUPPORT 3.1 TRANSPORT
TRANSPORT MOVES GOODS AND PEOPLE FROM ONE PLACE TO
NARROW CONCEPT WIDER CONCEPT
ANOTHER.
PART OF COMMERCE INCLUDES TRADE AND AIDS TO TRADE TYPES OF TRANSPORT
EASY FORMULA • ROAD
COMMERCE = TRADE + AIDS TO TRADE • RAIL
• AIR
2. HOME TRADE AND INTERNATIONAL TRADE • WATER
HOME TRADE • PIPELINE
TRADE CONDUCTED WITHIN THE BOUNDARIES OF ONE COUNTRY.
FEATURES IMPORTANCE OF TRANSPORT
• SAME CURRENCY • CONNECTS PRODUCERS AND CONSUMERS
• SAME LANGUAGE (MOSTLY) • ENABLES INTERNATIONAL TRADE
• FEWER LEGAL RESTRICTIONS • REDUCES DELAYS
• EASIER TRANSPORT AND COMMUNICATION • EXPANDS MARKETS
TYPES OF HOME TRADE
1. WHOLESALE TRADE ADVANTAGES AND DISADVANTAGES
2. RETAIL TRADE ADVANTAGES DISADVANTAGES
FAST MOVEMENT OF GOODS EXPENSIVE SOMETIMES
INTERNATIONAL TRADE
TRADE BETWEEN DIFFERENT COUNTRIES. WIDER MARKET ACCESS TRAFFIC AND DELAYS
TYPES SUPPORTS TRADE GROWTH FUEL COSTS
1. IMPORT TRADE – BUYING FROM ANOTHER COUNTRY
2. EXPORT TRADE – SELLING TO ANOTHER COUNTRY
,3.2 COMMUNICATION • STORES SEASONAL GOODS
COMMUNICATION MEANS SENDING AND RECEIVING • PROTECTS GOODS FROM DAMAGE
INFORMATION.
METHODS 3.6 ADVERTISING
• TELEPHONE ADVERTISING INFORMS CUSTOMERS ABOUT PRODUCTS AND
• EMAIL SERVICES.
• INTERNET OBJECTIVES
• VIDEO CONFERENCING • INCREASE SALES
• SOCIAL MEDIA • CREATE AWARENESS
• ATTRACT CUSTOMERS
IMPORTANCE • BUILD BRAND IMAGE
• FASTER BUSINESS DECISIONS
• BETTER COORDINATION TYPES OF ADVERTISING
• IMPROVES CUSTOMER SERVICE • TELEVISION
• SUPPORTS ONLINE BUSINESS • NEWSPAPER
• RADIO
3.3 BANKING • ONLINE ADVERTISING
BANKS PROVIDE FINANCIAL SERVICES TO INDIVIDUALS AND • BILLBOARD ADVERTISING
BUSINESSES.
SERVICES PROVIDED BY BANKS ADVANTAGES
• ACCEPT DEPOSITS • INCREASES DEMAND
• GIVE LOANS • EDUCATES CONSUMERS
• TRANSFER MONEY • HELPS BUSINESSES COMPETE
• PROVIDE OVERDRAFTS
• FOREIGN EXCHANGE SERVICES DISADVANTAGES
• EXPENSIVE
IMPORTANCE OF BANKING • CAN MISLEAD CONSUMERS
• PROVIDES FINANCE FOR BUSINESSES
• SAFE HANDLING OF MONEY 4. LOGISTICS AND SUPPLY CHAIN
• ENCOURAGES SAVINGS MEANING OF LOGISTICS
• FACILITATES TRADE PAYMENTS LOGISTICS IS THE MANAGEMENT OF MOVEMENT AND STORAGE OF
GOODS.
EXAMPLES
• HBL SUPPLY CHAIN
• MEEZAN BANK THE SUPPLY CHAIN IS THE JOURNEY OF A PRODUCT FROM
• STANDARD CHARTERED PRODUCER TO CONSUMER.
FLOW
3.4 INSURANCE RAW MATERIALS → PRODUCTION → WAREHOUSING →
INSURANCE PROTECTS BUSINESSES FROM LOSSES AND RISKS. TRANSPORT → RETAILER → CONSUMER
TYPES OF INSURANCE
• FIRE INSURANCE ELEMENTS OF LOGISTICS
• MARINE INSURANCE 1. TRANSPORTATION
• THEFT INSURANCE 2. WAREHOUSING
• LIFE INSURANCE 3. PACKAGING
4. INVENTORY CONTROL
IMPORTANCE 5. ORDER PROCESSING
• REDUCES FINANCIAL LOSS
• GIVES CONFIDENCE TO BUSINESSES IMPORTANCE OF LOGISTICS
• PROTECTS PROPERTY AND GOODS • REDUCES COSTS
• IMPROVES EFFICIENCY
3.5 WAREHOUSING • ENSURES TIMELY DELIVERY
WAREHOUSING MEANS STORING GOODS SAFELY UNTIL NEEDED. • INCREASES CUSTOMER SATISFACTION
FUNCTIONS OF WAREHOUSING
• STORAGE
• PROTECTION 5. TYPES OF COMMERCE
• PRICE STABILIZATION
• PREVENTS SHORTAGES 5.1 TRADITIONAL COMMERCE
BUYING AND SELLING THROUGH PHYSICAL SHOPS.
IMPORTANCE FEATURES
• HELPS CONTINUOUS SUPPLY • FACE-TO-FACE INTERACTION
, • PHYSICAL INSPECTION POSSIBLE ACTIVITIES HELPING TRADE.
ADVANTAGES
• IMMEDIATE DELIVERY RELATIONSHIP
• BETTER CUSTOMER TRUST STEP 1
DISADVANTAGES PRODUCTION CREATES GOODS.
• LIMITED MARKET STEP 2
• HIGHER OPERATING COSTS TRADE EXCHANGES GOODS.
STEP 3
5.2 E-COMMERCE COMMERCE SUPPORTS DISTRIBUTION.
BUYING AND SELLING THROUGH THE INTERNET.
EXAMPLES FLOW CHART
• AMAZON PRODUCTION → TRADE → COMMERCE → CONSUMERS
• DARAZ
IMPORTANT KEYWORDS FOR EXAMS
ADVANTAGES • DISTRIBUTION
• 24/7 SHOPPING • CONSUMERS
• GLOBAL CUSTOMERS • SUPPLIERS
• LOWER BUSINESS COSTS • MARKET
• PROFIT
DISADVANTAGES • EFFICIENCY
• FRAUD RISK • RISK
• CYBERCRIME • CUSTOMER SATISFACTION
• DELIVERY DELAYS • TRANSPORTATION
• FINANCE
5.3 M-COMMERCE
ELECTRONIC COMMERCE USING MOBILE DEVICES. QUESTION & ANSWER SESSION
EXAMPLES SHORT QUESTIONS
• MOBILE BANKING Q1. WHAT IS TRADE?
• SHOPPING APPS TRADE IS THE BUYING AND SELLING OF GOODS AND SERVICES FOR
PROFIT.
ADVANTAGES
• CONVENIENCE Q2. WHAT IS COMMERCE?
• QUICK PAYMENTS COMMERCE INCLUDES TRADE AND ALL ACTIVITIES THAT HELP
TRADE TAKE PLACE SMOOTHLY.
DISADVANTAGES
• INTERNET DEPENDENCY Q3. NAME THE SIX AIDS TO TRADE.
• SECURITY ISSUES 1. TRANSPORT
2. COMMUNICATION
5.4 S-COMMERCE (SOCIAL COMMERCE) 3. BANKING
BUYING AND SELLING USING SOCIAL MEDIA PLATFORMS. 4. INSURANCE
EXAMPLES 5. WAREHOUSING
• INSTAGRAM STORES 6. ADVERTISING
• FACEBOOK MARKETPLACE
• TIKTOK SHOPS Q4. WHAT IS HOME TRADE?
TRADE CONDUCTED WITHIN ONE COUNTRY.
ADVANTAGES
• DIRECT CUSTOMER INTERACTION Q5. WHAT IS INTERNATIONAL TRADE?
• LOW-COST MARKETING TRADE BETWEEN DIFFERENT COUNTRIES.
DISADVANTAGES Q6. WHAT IS LOGISTICS?
• SCAMS LOGISTICS IS THE MANAGEMENT OF MOVEMENT AND STORAGE OF
• TRUST ISSUES GOODS.
6. RELATIONSHIP BETWEEN PRODUCTION, TRADE AND Q7. WHAT IS WAREHOUSING?
COMMERCE WAREHOUSING MEANS STORING GOODS SAFELY UNTIL NEEDED.
PRODUCTION
MAKING GOODS AND SERVICES. Q8. WHAT IS E-COMMERCE?
TRADE BUYING AND SELLING GOODS THROUGH THE INTERNET.
BUYING AND SELLING GOODS.
COMMERCE EXPLAIN QUESTIONS
, Q9. WHY IS TRANSPORT IMPORTANT IN COMMERCE?
TRANSPORT MOVES GOODS FROM PRODUCERS TO CONSUMERS
QUICKLY AND EFFICIENTLY. IT EXPANDS MARKETS AND SUPPORTS
LOCAL AND INTERNATIONAL TRADE.
Q10. WHY DO BUSINESSES NEED BANKS?
BANKS PROVIDE LOANS, MONEY TRANSFER SERVICES, AND SAFE
STORAGE OF MONEY. THEY HELP BUSINESSES FINANCE
OPERATIONS AND TRADE ACTIVITIES.
Q11. WHY IS ADVERTISING IMPORTANT?
ADVERTISING INFORMS CUSTOMERS ABOUT PRODUCTS, INCREASES
SALES, AND HELPS BUSINESSES COMPETE IN THE MARKET.
Q12. EXPLAIN THE RELATIONSHIP BETWEEN PRODUCTION, TRADE
AND COMMERCE.
PRODUCTION CREATES GOODS, TRADE EXCHANGES THEM, AND
COMMERCE HELPS DISTRIBUTE THEM TO CONSUMERS EFFICIENTLY .
ADVANTAGES AND DISADVANTAGES QUESTIONS
Q13. STATE TWO ADVANTAGES OF E-COMMERCE.
1. SHOPPING IS AVAILABLE 24/7
2. BUSINESSES CAN REACH GLOBAL MARKETS
Q14. STATE TWO DISADVANTAGES OF INTERNATIONAL TRADE.
1. CURRENCY FLUCTUATIONS
2. HIGH TRANSPORT COSTS
Q15. STATE TWO FUNCTIONS OF WAREHOUSING.
1. STORES GOODS SAFELY
2. PREVENTS SHORTAGES
LONG QUESTIONS
Q16. EXPLAIN THE IMPORTANCE OF INSURANCE TO BUSINESSES.
INSURANCE PROTECTS BUSINESSES FROM RISKS SUCH AS FIRE,
THEFT, AND ACCIDENTS. IT REDUCES FINANCIAL LOSSES AND GIVES
BUSINESSES CONFIDENCE TO OPERATE SAFELY.
Q17. EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF
ADVERTISING.
ADVANTAGES
• INCREASES SALES
• CREATES AWARENESS
• HELPS COMPETITION
DISADVANTAGES
• EXPENSIVE
• MAY MISLEAD CUSTOMERS
FINAL ONE-LINE SUMMARY
COMMERCE HELPS TRADE BY USING SERVICES SUCH AS
TRANSPORT, BANKING, COMMUNICATION, INSURANCE,
WAREHOUSING, AND ADVERTISING TO MOVE GOODS FROM
PRODUCERS TO CONSUMERS EFFICIENTLY.
