Trade
Trade is referred to as a basic economic activity that involves buying and selling different goods and services between two or more parties involved in the transaction. Trade that takes place between two parties is called bilateral trade, while the same occurring between more than two parties is called multilateral trade.
Commerce
Commerce is referred to as an economic activity that involves the exchange of goods and services or valuables between two entities. It involves purchasing goods and services by large organisations. Commerce mainly deals with transactions taking place between nations.
| Trade | Commerce |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Definition | |
| Trade is referred to as a basic economic activity that involves buying and selling of different goods and services between two or more parties involved in the transaction. | Commerce involves all the activities that aid in promoting the exchange of goods and services from the manufacturer to the last customers. Primarily, the activities are banking, transportation, advertising, warehousing, insurance, etc. |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Reach | |
| Narrow | Wider reach |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Purpose | |
| Satisfying the social perspective of seller and buyer | To look for generation of revenue |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Connects | |
| Buyer and seller | Manufacturer and end user |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Requirement of Capital | |
| Trade requires more capital | Commerce has less capital requirement |
| Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Employment Opportunities | |
| Less as compared to Commerce | More in comparison with trade |
The above mentioned is the concept, that is elucidated in detail about ‘Difference between Trade and Commerce’ for the Commerce students. To know more, stay tuned to BYJU’S.
Also check:
- Difference Between Traditional Commerce and Ecommerce
- Difference Between Cash Flow and Fund Flow
- Difference Between Sole Proprietorship and Partnership
- Difference Between Monopoly and Monopolistic Competition
- Difference Between Depreciation Expense and Accumulated Depreciation
- Difference Between Production Management and Operation Management
- Difference Between GDP and GNP
Perfect definition
Good explanation sir
Thank you sir for the useful information