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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