What are the functions of commerce?

What are the functions of commerce?

  • It bridges the gap between the producers and the final consumers.
  • ┬áIt encourages countries to specialize in the production of goods that utilizes the available resources.




  • It promotes international trade hence enabling countries to exchange goods amongst themselves.
  • It enables the public to get information concerning the availability of goods on market.
  • It enables the people to get a variety of goods from different countries hence improving on their standard of living.
  • It enables business men to acquire capital to invest in their firms due to the availability of banking services.
  • It provides employment opportunities to the people eg.exporters, retailers etc.
  • It creates utility by ensuring that goods and services reach the final consumers in the rightful place and at the rightful time.




  • It leads to quality improvement in the products as a result of the competition created amongst the various producers.
  • It promotes interdependence among countries which strengthens trading relationships amongst them.
  • It helps to instill confidence in the traders since they are assured of being compensated incase of any loss due to the availability of insurance services.

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mwaikusa

IAM experienced geography teacher with more than three years of teaching and creating content related to geography and other subjects for both high school and college students. hope you will find the content of this website useful to your studies and daily life

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