(a) Define commerce.
(b) Explain six functions of commerce in an economy.
Explanation
(a)Commerce is defined as those activities involved in the distribution and exchange of goods and services.
(b) Functions of Commerce:
(i) Commerce facilitates mass production and thus people all over the world can enjoy goods and services produced both within and outside their countries.
(ii) It facilitates the raising of capital for individual needs and investment through the services of banks and other financial institutions.
(iii) It offers employment opportunities to a large number of people as traders, bankers, insurance brokers, etc.
(iv) It assists in moving people, raw materials and finished goods from production points to consumption points through transport.
(v) It facilitates the storage of goods until they are needed, thus bridging the gap between demand and supply in the market.
(vi) It fosters unity among nations thus nations, become interdependent as they engage in trading activities.
(vii) The availability of variety of goods and services leads to improvement in standard of living and quality of life.
(viii) Risk bearing: The availability of insurance companies encourages entrepreneurs to venture into various business activities.
(ix) It facilitates the exchange of goods and services.
(x) It makes the public aware of the availability of goods and services through advertising.
(xi) Commerce through communication links buyers and sellers together to do business without physical contacts.