Role and Advantages of International and Home Trade Coursework

Role and Advantages of International and Home Trade - Coursework Example Commerce includes all those activities, which are connected with trade and auxiliaries to trade such as transport, warehousing, insurance, and banking and finance.   The trade involves buying and selling of goods and its purpose is to bridge the gap between persons, i.e. the producers and the consumers can concentrate on their own occupations and at the same time buy goods to satisfy their consumption needs. The farmers can both enjoy each other’s products with the help of traders. For example, there are different types of cotton; jute, hides, and skins are supplies to the producers of cotton textiles, gunny bags and shoes respectively. At the same time manufactured goods, which have been produced with the raw materials, are supplied to the consumers. Producers buy raw materials, machinery and equipment, as well as stores and spare parts for machinery fro trading agencies and consumers, buy practically all articles required for their daily use from traders.Goods are produced on a large scale in anticipation of demand.   The markets for products are now spread over the length and breadth of the country and even extended to countries acro ss the international borders. Hence direct sale of goods by the producers to the consumers is not possible. Without the help of traders and merchants engaged in trade, it would be impossible for the system of large-scale production to continue. The trader involved in the actual operation of purchasing goods from producers and selling them to consumers. Traders and consumers are interdependent.