COMMERCE: MEANING, IMPORTANCE, DIVISION AND AIDS TO TRADE—BY INSTRUCTOR OKOYE, EUNICE.
INTRODUCTION TO COMMERCE/MEANING: Commerce can be defined as all activities involved in the distribution exchange of goods and services, and all who aid this distribution.
IMPORTANCE OF COMMERCE: The importance of commerce are:
Commerce offers employment opportunities to a large number of people e.g. drivers, cleaners , house wives etc.
It promotes the exchange of goods and services.
It helps to increases the standard of the living of the people.
It creates link between the producers, sellers and the buyers.
Commerce helps in the development of our local market.
It promotes rapid transfer of information.
Commerce can be divided into trade and aids to trade.
TRADE: Trade means buying and selling of goods and services to satisfy human wants. There are two types of trade which are home and foreign.
HOME TRADE: Home trade is the act of buying and selling goods with a particular country. It can be called internal trade or domestic trade. The same currency is used in home trade. It is divided into two.
A] WHOLESALE TRADE: Wholesale trade is the buying of goods in large quantities from the manufacturers and sell in small quantities to the retailers.
B] RETAIL TRADE: A retail trade is when someone buys in small quantities from the wholesalers and sells in smaller/units to the final consumers. It is divided into:
 LARGE RETAILER: A large retailer buys varieties of products from different manufacturers in large quantities and sell to the final consumers. Examples are Shoprite, Justrite, Leventis etc.
 SMALL RETAILER: Small retailers buy in few varieties of goods in small quantity and sell to the final consumer. Examples are market store owner, Kiosk etc.
FOREIGN TRADE: It is a trade that occur between two or more countries. For example, Nigeria and Togo. It is also referred to as international trade. It is divided into the following.
A] IMPROT: This is when goods are bought and brought to Nigeria from another country of the world. Some of the goods are: radio, television, Cars etc.
B] EXPORT: This is when goods are sold out from a country to another country. In Nigeria, we sell crude oil, cocoa, rubber, cassava etc to another country.
C] ENTREPOT: This is the process of importing goods and services for the purpose of re-exporting them to other countries of the world.
AIDS TO TRADE: Aids to trade are the parts that help in trading. They are as follow:
BANKING: This is an aid to trade that make funds available to the business. Examples of the types of bank in Nigeria are commercial banks, merchant banks and mortgage banks.
ADVERTISING: It is the creating of awareness in the mind of the people about the existence of goods in the market. Information about the existence of a product in the market.
TRANSPORT: This is the movement of goods and people from one place to another. Raw materials or finished products are moved to where they are needed.
WAREHOUSING: This is the storing of goods until they are needed. Where these goods are kept is called warehouse.
TOURISM: Tourism provide trading opportunities to the tourist at their centre.
COMMUNICATION: It is a means of sending information from one place to another. It could be in form of letter, telephone, internet, internal memo etc.
INSURANCE: This is the provision made for protection of the business against risk, loss or liability suffered in daily business operations. It could be marine insurance, life assurance, fire insurance, motor vehicle insurance etc.