What is the Difference between Trade and Commerce?

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

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3 Comments

  1. Perfect definition

  2. Good explanation sir

  3. Thank you sir for the useful information

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