Importance of Commerce

  1. Satisfies the increasing human wants. Human wants are never ending. They are classified as basic and secondary wants
  2. Has made distribution and has led to movement of goods from one part of the world to the other. Commerce has greatly influenced globalization.
  3. Commerce helps to increase/improve our standards of living which is the quality of life enjoyed by the members of the society. When a man consumes more products his standard of living consume a variety of goods he/she must be able to secure them first. Commerce helps us to get what we want at the right time, right place and right price, thus improving our standard of living.
  4. Commerce links producers to consumers. It make it possible to link producers and consumers through retailers, wholesalers and also through aids to trade. Consumers gets information about different goods through advertisement and salesmanship .the producers are regularly informed about the likes and dislikes of the consumers through marketing research. Production is meant for ultimate links producers and consumers through retailers and wholesalers and also through different goods through advertisement and salesmanship. The manufacturers are regularly informed about the likes and dislikes of consumers through market research.
  5. Commerce generates employment opportunities. The growth of commerce, industry and trade brings about the growth of agencies of trade such as banking, transport, warehousing and advertisement. These agencies need people to look after their functioning. These results in boosting employment opportunities.
  6. Commerce increases national income and wealth. When production increases, national income also increases. It also helps to earn foreign exchange by way of exports and duties levied on the imports.
  7. Commerce helps in expansion of aids to trade – with the growth in trade and commerce there is growing need for expansion and modernization of aids to trade. Aids to trade such as banking, communication, advertising, and publicity, transport, insuranceetc. are expanded and modernized for the smooth conduct of commerce.
  8. Commerce helps in growth of industrial development. Commerce looks after the smooth distribution of goods and services made available by the industry. Withoutcommerce, industry will find it difficult to keep the pace of helps to increase demand for goods on one hand and on the other hand it helps industries by getting them the necessary raw materials and other services.Hence, commerce helps in attaining better division of labor and industrial progress.
  9. Commerce encourages international trade. Through commerce, we can secure a fair and equitable distribution of goods throughout the world. With the help of transport and communication development, countries can exchange their surplus commodities and earn foreign exchange, which is very useful for importing machinery and sophisticated ensures faster economic growth of the country.
  10. Commerce benefits underdeveloped countries – Underdeveloped countries can import skilled labor and technical know-how from developed countries. While the advanced countries can import raw materials from underdeveloped countries. This helps in laying down the seeds of industrialization in the underdeveloped countries.
  11. Commerce helps during emergencies – During emergencies like floods, earthquakes and wars, commerce helps in reaching the essential requirements like foodstuff, medicines, and relief measures to the affected areas.

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