Business, Legal & Accounting Glossary
the activity of buying and selling, especially on a large scale. The exchange of goods or services for money or in kind, usually on a scale large enough to require transportation from place to place or across city, state, or national boundaries.
Commerce is concerned with buying, selling and distribution of commodities. It is an organised system for the exchange of goods and services. It involves not only the functions of buying and selling but several other activities required to facilitate buying and selling.
Commerce is referred to as that part of trade, which deals with the activity of exchange of goods and services. Exchange generally takes place between the producer and the final consumer. Exchange includes all types of economic goods and services including monetary services.
Commerce is considered as the backbone of any economy. Any economy needs to commercialize in order to survive in the long run. Economic growth takes place only when there is an improvement in economic activities. After manufacturing of any product, it has to be exchanged in order to cover the cost of its production. An exchange takes place in market, where producer launches a product and sells it in exchange for money. Thus, there is an exchange between money and product, which is commerce in economics.
The process of launching any new product in the market can be termed as commercialization (also known as Commercialisation in British English). When a product is ready for final consumption, producer introduces it in the market. This process is defined as the commercialization of the product. The process of commercialization can be separated into various stages.
Initialization of commercialization takes place when the producer is ready with the product for final consumption. Introduction time of the product is to be decided by the producer. If there exists any close substitute of the product, then the launch of the product can be delayed.
Apart from the introduction time, the producer has to decide the venue for launching the product. Choice can be a single location or a number of locations according to the will of the producer. The producer has to decide whether the product should be kept local or global.
The last stage of commercialization is to capture the target audiences. The producer decides the primary target consumers of the product. Distribution and promotion campaign is then decided accordingly. The primary consumers’ list should include early adopters, reviewers, and innovators.
Commercial transaction of any country is usually regulated by some laws known as commercial laws. These laws control corporate dealings along with manufacturing and sales of consumer commodities.
the changes in taxation are of benefit to the commerce of the region.
the noise and warmth of human commerce.
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This glossary post was last updated: 26th March, 2020 | 3 Views.