Branches of commerce: 1.Trade 2.Aid to trade

1. Branches of Commerce
Commercial activities may be
classified into two broad categories:
1.TRADE
2.AIDS OF TRADE

3. 1.TRADE
•Trade is the means of buying and selling of goods and
services with the aim of earning profit.
•It involves exchange of commodities for money or
money’s worth.
•Traders serves as the link between producer and
consumer.
•Producer trader consumer

5. Home trade
•Domestic trade or internal trade
•It means buying and selling within
geographical boundaries of one
country.
•Both the buyer and seller belong to
the same country.
•Trade between Bombay and New
Delhi

6. Home trade is classified as
• A)Wholesale trade
• It involves buying and
selling of goods in large
quantity.
• Traders engaged in
wholesale are called
WHOLESALERS.
• PRODUCER
WHOLESALERS
RETAILER
• B)Retail trade
• It involves buying and
selling of goods in small
quantity.
• Traders engaged in
retail trade are called
RETAILERS.
• WHOLESALERS
 RETAILER 
CONSUMER

7. FOREIGN TRADE
•External trade or international trade
•Buying and selling of goods and services
between two or more countries.
•It enables a country to concentrate on the
production of goods it is best suited.
•It also enables to obtain goods which cannot
profitably produced at home country.

8. Foreign trade classification
• a)EXPORT TRADE
• It implies the SALE of goods
to foreign countries.
• India exports tea to The
United Kingdom
• C) ENTREPOT TRADE or Re-
Export trade
• It means importing goods
from one country for the
purpose of exporting to
another country
• India imports certain
commodities from
European countries and
exports them to Bhutan and
Nepal
b)IMPORT TRADE
It implies the PURCHASE of goods
to foreign countries.
India imports petrol from Iran

9. AIDS TO TRADE
OTHER AIDS:
Proper packing
Telephone,
Internet,Postal
services