Commerce Is The Branch of Production That Deals Wi

Commerce is the branch of production that deals with the distribution exchange of
goods and services and all activities that assist and facilitate trade
Distribution means to spread the product through the marketplace such that a large
number of people(consumers) can buy it.
The scope of commerce may be seen as embracing the totality of all activities which
ensures the distribution and exchange of goods and services for the satisfaction of the
people.Commerce embraces trade and aids to trade.
Trade is the branch of commerce involving the buying and selling of goods example
buying and selling of fruits in the market but trade involves home trade and foreign
trade
Home trade involves the buying and selling of goods or services within the country.
It involves either wholesale and retail trade
Wholesale trade is a form of trade in which goods are purchased and stored in large
quantities and sold, in batches of a designated quantity, to resellers, professional users
or groups, but not to final consumers.
Retail trade are business firms engaged in offering goods and services directly to
consumers.
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Foreign trade involves the buying and selling of goods or services between two or
more countries.example Trade between Tanzania and China
Export trade This is the process of selling goods and services outside the country for
example Tanzania sells fruits to Rwanda.
Import trade this is the buying of goods and services from other countries example
Tanzania petrol from UAE
Entrepot trade is the system of trade where by a country deals with importing goods
for exporting. Example Tanzania harbor entrepot goods from Europe to Congo
Aids to trade this are the activities which facilitate trade to take place smoothly they
include
Banking is a financial institution licensed to receive deposits and make loans. Banks
may also provide financial services like Currency exchange, wealth management and
act as a custodian for valuable items
Insurance is the system of pulling risk where by people contribute to a common pool
from which they are paid if a certain event of loss occur.
Warehousing is the process of storing goods for safety until when they are required
Advertising is the art of making goods and services known to the public
Transport and Communication deals with the movement of people, goods and
services from one place to another through various means of transportation
Needs are essential things to man that a person cannot live without them example air,
water and food.
Wants are non-essential things to man this are only desires example television, radio,
car e.t.c
The role of commerce in satisfying human wants is to drive the capitalism of

distribution of goods and services to consumers. Commerce is the entire process from
production to consumption. The following below are roles of commerce in satisfying
human wants and needs
Through transportation and communication in commerce human wants are satisfied at

the right place hence this creates place utility example Chunya district they received
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goods to satisfy their wants through various means of transportation and
communication.
Warehousing through warehousing in commerce the goods are stored until when they
are required hence this creates time utility for example METL store their goods in
their warehouses for distribution purposes
Commerce offers employment opportunities to a large number of people for example

people are employed as driver, teachers they get salary used to satisfy their needs and
wants
Commerce facilitates mass production of goods and thus people all over the world can
enjoy good and services within and outside their countries for example a good
produced in China can be consumed Tanzania through the help of Commerce
Commercial services includes any type of trade or business involving the

transportation of goods or individuals or services and aim at making services for
profit example banking, warehousing and insurance companies.
The following below are the roles of commercial services in the growth of economy
and overall development of Tanzania.
Commercial services help in payment of taxes the government needs the contributions
to improve more and more the economy and the development sector at large example
Banks as an economy of commercial services pays up taxes to the government.
Creates employment to the people commercial activities gives opportunity to people

to work for certain works to earn salary which in one way another help in contribution
of the GDP of the nation at large example People employed at various sectors like
banks, transport industry e.t.c
Commercial activities such as transport system promotes business activities that help
in economic growth example those buses which carry passengers or products from
one place to another hence it is easier to promote business activities as a person can
do delivery.
Promotes capital formation commercial activities assist investors to access capital

finance for their business through long term loans with affordable interest rates hence
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this leads to the growth of entrepreneur sector in the economy example many
commercial bank like CRDB provide loans
Facilitates the growth of industrialization Banking system provide large loans and
also transport system enhances the growth of industrialization hand in hand with good
government policies which pursue those investors to invest in the country
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REFFERENCES
Amar. K.,Sohani, (2009), “Technology and Banking Sector”, ICFAI University Press
Safdar Ali Butt, (1976), “Essentials of commerce in East Africa”, London:Cassell
Salemi,N.A.,(2014),“Commerce simplified (Revised edition) for East Africa”

Nairobi ; Saleemi publications LTD

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Commerce is the branch of production that deals with the distribution exchange of

The role of commerce in satisfying human wants is to drive the capitalism of

Through transportation and communication in commerce human wants are satisfied at

Commerce offers employment opportunities to a large number of people for example

Commercial services includes any type of trade or business involving the

Creates employment to the people commercial activities gives opportunity to people

Promotes capital formation commercial activities assist investors to access capital

Safdar Ali Butt, (1976), “Essentials of commerce in East Africa”, London:Cassell

Salemi,N.A.,(2014),“Commerce simplified (Revised edition) for East Africa”

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