Explain how industry, trade and commerce are related.

Solution

1. Relationship between industry, trade and commerce :For the extensive development of a country, the inter-related activities of commerce, industry and trade are always advocated.

2. For all round development of a country, commerce, trade and industry have to work together efficiently.

3. Industry is the back-bone of commerce and trade.

4. Industry includes all the processes of converting raw materials into consumable goods.

5. Trade depends on industry. There can be no trade without industry. The more the goods are manufactured, through industry, the more the need to trade.

6. While industry is concerned with the production of goods, commerce is concerned with the removal of various hindrances between the producers and customers.

7. For the success of any business, industrial and commercial functions have vital roles.

8. Development of industry is greatly facilitated by commerce by way of vital services like, banking, transport, insurance, advertising, publicity etc.

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Annual Exam, 2011

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