Theory question 101
Introduction to CommerceCommerce 2 (essay)
(a) With the aid of a diagram, illustrate the scope of commerce
(b) Explain four commercial activities that facilitate buying and selling
Show the model answer
(a) Diagram: Commerce divides into Trade and Aids to trade. Trade → Home trade (wholesale, retail) and Foreign trade (import, export, entrepôt). Aids to trade → transport, communication, banking, insurance, warehousing, advertising (tourism may be added).
(b) Any four aids to trade, explained: transport (moves goods from producers to consumers – removes the barrier of distance); communication (passes information between buyers and sellers); banking (provides finance and means of payment); insurance (covers risks of loss); warehousing (stores goods until needed – bridges time); advertising (informs and persuades buyers).
The diagram must show trade and aids to trade with their branches.