MEANING OF THE TERM COMMERCE

MODULE -1

1.1 MEANING OF THE TERM COMMERCE

It represents that particular domain of knowledge which deals with the concepts, principles, theories, processes and skill that could be applied in the proper conduct of all tasks and transactions related to commercial activity.

1.2Definition     

 “Commerce is a term that embraces all those functions involved in the making, buying, selling, and transport of goods”                                                                                                        _Dr. Evelyn Thomas

1.3Nature and characteristics

 1) Adoption of the scientific method of study

   -  Commerce cannot be considered as an exact science as the physical science.

  -   Commerce also adopts scientific method in studying and organizing programmers’, and drawing           conclusions on the basis of vast data gathered.

-It satisfies the characteristics of a science-rather a social science.

2) Attempt at making predictions

 -Input variables, process variables and output variables involved in commercial endeavors are not precisely standardized and are subject to variations resulting from fluctuations in climate, political relations, economic catastrophes, changes in life styles.

3) Correlation with a variety of subjects

-The wide range of activities related to the innumerable tasks involved in commercial activities that are bound to depend upon a variety of other disciplines also

4) Insistence on social relevance

-One who learns this subject has to develop positive attitudes and noble values that are demanded by this social significance.

5) Qualities of an applied science

- The concept, principles, theories, etc... Enunciated by experts and retrenches in commerce are always meant for evolving more efficient strategies and practices commercial life.

1.4 scope of commerce

Ø Planning and guidance for the production of goods

    - Many variables that is relevant to the production of commodities.

   - pooling of inputs including the labor that provides expertise, facilities for transportation, demand for the goods, scenario of its trade, the issue of making profits etc.. All these are either directly or indirectly related to commerce and hence their proper planning is a crucial issue.

Ø Studies about all aspects of trade

-Home trade, whole sale and retail trades, foreign trades

Ø Warehousing

-         Produced have to be safely stored till it reaches the market, and their quality maintained without getting spoiled.

Ø Transport

-         Movement from one center to another by means of cheap and effective transportation that too is an essential aspect of commerce.

Ø Banking

-         Trade and a number of other activities, banking services play a crucial role.

-         Studying the various types of banking service available, their evaluation from the point of view of the needs of commercial endeavors.

Ø Insurance services

-         Very high probability of destruction and damage of input, equipments, products,etc… due to various resources

-         Insurance against such losses is essential for the very sustenance of commercial concerns.

Ø Information transmission

-Buying and selling of commodities depend upon awareness of the customers at home and abroad, proper information about these have to be transmitted.

Accounting

Ø Accounting

- Proper accounting of details regarding transactions at various stages and levels is the life breath of the successful functioning of any commercial Endeavour.

-suggesting feasible technique for the collection, tabulation and recording of data having financial relevance and predicting consequences on their basis.

         1.5 Major areas of commerce and their recent development

Banking

With the advent of computer banks can new offer to their customer a variety of new services such as; Electronic Fund Transfer System (EFTS) Such As NEFT<RTGS<SWIFT Etc…

Automated Teller Machine

-Debit Card

               -Credit Card

               -Core Banking

\            - Mobile Banking

              -Rupay Card

             -IMPS

             -Tele Banking

            -internet banking

 Marketing

E-commerce is the practice of by buying and selling product and service over the internet, utilizing web , electronic data interchange, electronic fund transfer and smart cards, e-pay.

-Meta Marketing

-Mega Marketing

-Mass Marketing

-Event Marketing

-De-Marketing

-Reciprocal Marketing

-Online4 Marketing

-Frequency Marketing

-Social Marketing

-One –On-One Marketing

-Internet Marketing

Insurance

-Insurance is a method of averaging risk.

-Entry of private companies is noted as the major advancement in the field of insurance.

 Communication

 The fruits of fast changing technology are enjoyed by communication.

           -Fax

          -Internet

          -Extranet

          -Video conferencing

          - Tele conferencing

         - Video calling

         - Global positional system (GPS)

          -Social networks

  Trade

   Trade involves buying and selling of goods and services.

          -Mail order

          -Online shopping

          -Snap deal.