Difference between trade and commerce

Posted By: Sm Adminon: December 01, 2015In: Miscellaneous

Trade:
The buying and selling of goods for money is known to be trade. As the human wants are unlimited, a person cannot satisfy his wants with single goods so the trade takes place. The first type of trade was barter system of trade. Here, firstly the producer produces the goods, then it is carried out by the wholesaler and retailer then at the last only, the goods is reached to the final consumers
Commerce:
The exchange of goods and commodities for money which is especially on a large scale is known as trade. It usually takes place between businesses and entities or nations and countries. It increases the production in a mass which helps the consumers to purchase the goods in a low cost.
Differences:

Basis	Trade	Commerce
Definition (www.oxforddictionaries.com)	The action of buying and selling goods and services	The activity of buying and selling, especially on a large scale
Objectives/Purpose	Its objectives are: to satisfy the human wants which are of unlimited nature to earn profit to increase the living standard of the customers	Its objectives are: To promote the business interests of the private sector. To provide a place for discussion of private sector goals.
Synonyms	Business, exchange, deal, transaction and market	Economics, industry, trade, retailing and traffic
Antonyms	Misunderstanding, disagreement, idleness and unemployment	Unemployment
Pronunciation	Eng (UK): /treɪd/ Eng (US): /trād/	Eng (UK): /ˈkɒməːs/ Eng (US): /ˈkämərs/
Types	Its types are: Home trade Wholesale trade Retail trade Foreign trade Import trade Export trade Entreport trade	The types of commerce are: E-commerce Business to business Consumer Business to government Consumer to consumer Mobile commerce Commerce
History	Trade is believed to have existed from the time of human history. It also has an evidence of the exchange of obsidian and flint during the stone age.	Commerce was pointed out by Historian Peter Watson from approximately 150000 years ago.
Word origin	The word trade was originated between 1300-50 from Middle English, from Middle Low German, akin to Old high German trata track, course, and Old English tredan to tread.	The word commerce was originated in between 1530-40 from Middle French, from Latin commercium.
Similarities	It is related with the distribution of goods and services	It is related with the purchase and sales of goods and services.
Nature	Trade is related to the exchange of goods or services from one person to another, something in exchange from the buyer.	The nature of commerce are: Economic activities Exchange of goods and services Profit Motive Creation of place and time utility Regular transactions
Scope	The scope of trade is narrower as it is related with the limited transactions.	The scope of commerce is wider than that of trade because it is also concerned with the development and promotion of trade.
Type of Activity	Social Activity	Economic Activity
Frequency of Transactions	Isolated	Regular
Employment opportunities	No	Yes
Main function	Major functions of trade are: a service function function of representation a regulatory function a government function a public administration function	The functions of commerce are: To remove the obstacle of: person place time exchange risk knowledge
Link	Between buyer and seller	Between producer and consumer
Demand and supply side	Represents both	Represents only the demand side
Capital requirement	More	Less
Advantages/Benefits	Some advantages of trade are: It leads to specialization. It improves in efficiency of performing activities. It helps to increase the living standard of the people. It leads to the proper utilization of resources.	Its advantages are: Transfer of technology High production Customer’s satisfaction Raising the living standard of people Employment opportunities Encourages the international trade Development of aids to trade
Disadvantages	Its disadvantages are: It increases the production which leads to the pollution. There would be arrears (shortage) in Balance of Payment which leads to an international debt.	Its disadvantages are: It does not provide the guarantee about the quality of the product.
Example in Sentence	The trade takes place between two countries. A registered trademark of the company is a must to perform the functions of trade.	Nowadays many banks have been providing the credit card or e-commerce facilities. Commerce has made easier to perform the business transactions in an effective manner.