Introduction to commerce Flashcards
(19 cards)
What is the meaning of Commerce?
Commerce is the branch of production that deals with the distribution, exchange, and all activities that support the movement of goods and services from producers to consumers.
What system preceded money in commerce?
Barter trade
What are some challenges of the barter system?
- Lack of a common measure of value
- Difficulty in storing wealth
- Double coincidence of wants
What was introduced to solve the problems of the barter system?
Money
What are the stages of evolution of Commerce?
- Barter System
- Money Economy
- Local and Regional Trade
- International Trade
- Modern Commerce (including E-commerce)
What is one importance of Commerce?
Enables exchange between producers and consumers
How does commerce support specialization?
It supports the division of labour
What are the two main areas of Commerce?
- Trade
- Aids to Trade
What is Home Trade?
Buying and selling of goods and services within a country
What are the two types of Home Trade?
- Wholesale
- Retail
What is Foreign Trade?
Buying and selling of goods and services between countries
What are the components of Aids to Trade?
- Banking
- Insurance
- Transportation
- Warehousing
- Communication
- Advertising
What does E-commerce stand for?
Electronic Commerce
What is E-commerce?
The buying and selling of goods and services over the internet
What are some features of E-commerce?
- Conducted online via websites and mobile apps
- Payment is made electronically
- Reduces the need for physical shops
- Increases access to global markets
What are examples of E-commerce platforms?
- Jumia
- Konga
- Amazon
- eBay
- Alibaba
What is a benefit of E-commerce?
Convenient for buyers and sellers
Fill in the blank: E-commerce provides _______ availability.
24/7
True or False: E-commerce saves time and reduces cost.
True
