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 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 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.|
|Satisfying the social perspective of seller and buyer||To look for generation of revenue|
|Buyer and seller||Manufacturer and end user|
|Requirement of Capital|
|Trade requires more capital||Commerce has less capital requirement|
|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.