Scope means area of study. Commerce therefore, has two major areas namely (a) Trade and (b) Aids to trade.

scope of commerce

TRADE: Is the mechanism by which buyers and sellers bargain for exchange of goods and services. It is the act of buying and selling of goods and services. We have two. types of trade namely Home. and Foreign trade. 

Home /internal Trade: This is a domestic trade that takes place within a country. It consists of the wholesale and the retail trade.

Foreign/External Trade: This is an international trade involving two or more countries across national boundaries e.g Nigeria trading with U.S.A. (United States of America).

Aids to Trade: This consists of the commercial activities that facilitate trade. such as banking and finance, advertising, insurance, transport, warehousing, communication, etc.

Banking and Finance: This s the area though which the money required to establish and expand commerce and industry is made available.

Advertising: This is a good weapon used in winning potential customers through the promotion of new and old products in the market. Advertising is achieved through the media houses such as radio, television, newspapers, magazines, posters and window display.

Insurance: Is the pooling of risks. It is a contract under which an insurer promises to indemnify the insured against any justifiable loss, which he (the insured) may suffer upon the payment of premium. Insurance can be taken on life, burglary, fire and fidelity.

Transport: There are basically five different types of transport namely: air, land, sea, pipeline, and railway. Transport therefore is the act of moving goods and passengers from one place to another.

Warehousing: This is another essential aspect/function of commerce, which helps to provide storage facilities for goods at various stores before goods are finally carried to their prospective consumers. Warehousing are of three types viz: Ordinary, Bonded and Queen’s warehouse.

Communication: Is the process of sending messages/information/ideas from one person to another through telephone, telex, fax and letters.

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