Give the inter-relationship between industry, commerce and trade.

Solution

1. Industry, commerce and trade are closely related to each other. For example, industry provides goods and services which are distributed through commerce. No commercial activity is possible in the absence of industry and production.
2. At the same time industry and production can not work unless the goods and services are distributed among consumers through commerce. Therefore, industry provides the base of commerce and commerce serves as the backbone of industry.

3. Trade involves buying and selling of goods. It is the nucleus of commerce because all business activities revolve around transfer or exchange. Trade provides the solid foundation upon which the superstructure of commerce has been raised. It provides necessary support to industry and maintains a smooth flow of commerce. This interrelationship is shown in figure.

Some More Questions From Nature and Purpose of Business Chapter

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Nature And Purpose Of Business

Give the inter-relationship between industry, commerce and trade.

Some More Questions From Nature and Purpose of Business Chapter

Define economic and non-economic activities.

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Define internal trade.

Define External Trade.

Define risk.

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