What is the Defference Between Industry and Commerce?

 

What is the Defference Between Industry and Commerce?

Commercial industries

Industry:

An industry consist of a group of firms producing similar goods for a particular market. It is thus concern with the actual production of goods. It is customary to divide industry into:

1. Extractive
2. Manufacturing
3. Constructive industries

The extractive industry are concern with changing location of the products of the earth, sea, and air. They include such industries as mining, farming, lumbering and fishing.

Manufacturing industries are those are those which transform the raw materials into such things as metal, flour and sawn timber.

Constructive industries are of two kinds;. The first consists of those which undertake to assemble manufactured goods into such durable items as motor cars, wireless set, etc. The second concerns the actual construction of buildings,roads, ships, and host of others.

The people working in industries are referred to as industrial workers. Industries can be shown diagrammatically as follows:

Commerce:

Commerce on the other hand, is the distribution and exchange of all the surplus goods produced in the farms, mines, sea, forests, factories of the earth so that they reach the consumer in the right place, and at the right conditions, at the right time, in the right quantity, and at the right prices.

It also implies and interchange of communication between the people concerned
The exchange of goods and services on commercial basis is termed as trade and this is usually aided by some auxiliary services without which Trade could not be possible.

Commerce is divided into trade, and aids to trade. There two forms of trade; these are home trade and foreign trade. Home trade is made up wholesaling and retailing while foreign trade consists of import, export and (sometime) entreport.

The various aids or auxiliary to trade are transport, insurance, warehousing, banking and advertising.

Production is never complete until the commodity produced has actually reached the hands of the final cunsumer. Trade, therefore, would be meaningless if the commodity being traded in cannot reach its final destination.
The various forms of transportation enable this to be done. In transporting goods from one place to another say by sea there are risk that the trader might face such as theft, damage or shipwreck leading to a complete loss of the goods. Insurance gives protection to all such risks.

When goods are produced in large quantities, it is found that not all of it would be needed at once and since they cannot be left just any where. Suitable warehouse have to be provided at convenient point.

At times a trader may run short of money and may wish to borrow in order to be able to carry on his business. The bankers are exist to offer him or she this services.

Finally, when goods are produced, transported and stored, they must be brought to the notice of consumers. Effective communication is therefore needed inorder to dispose of the goods effectively. Advertising helps in this direction.