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FUNCTIONS OF COMMERCE

economy

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FUNCTIONS OF COMMERCE

Commerce as a human activity is essentially the moving of goods from the seller to the buyer, namely the exchange and distribution of goods and services. As the goods are almost always produced far away from the place of consumption, their way from the producer to the consumer is a long and complicated one. Moreover, the goods are produced in large quantities but used in small ones.

While the manufacturer has a limited production range, the consumer's requirements are almost unlimited in variety and it is the function of commerce to provide links between the stages of this process and the actual tools needed to make it work.

The main functions of commerce are as following.

Trade is essentially the general exchange of goods and services between producers and consumers. Trade consists of Home Trade including Wholesale Trade and Retail Trade and Foreign Trade dealing with Imports and Exports.

Transport concerns the moving of goods by land, sea or air as well as the work of agents, travelers, trade representatives, etc., people who altogether carry it out.

Communications are generally linked to the commercial activity as a whole since no transaction is possible without communications. Also, without communications endless delays and hindrances occur in all stages of commerce. Communications are made possible through the postal and telegraph system, telephones, facsimile (fax), E-mail, cables, radio mobile systems and satellite.

Warehousing is a major function in modern conditions as production is usually in advance of demand and goods have to be stored appropriately in the warehouses of the manufacturer, wholesaler or retailer until they are required.

In this respect, each producer makes use of numerous depots at specially arranged places, usually at the consumer's reach. This function not only enables goods to be supplied whenever they are wanted, but also wherever they are wanted. Warehousing also provides a central pool for goods from where supplies may be taken at any time so that the wide fluctuation of prices caused by glut or short supplies can be avoided.

The risk of loss or damage in a business is covered by insurance policies which render trade secure and stable, since it enables the businessman or businesswoman survive losses by damage, fire, shipwreck, etc.

Text comprehension

1. Vocabulary

         Seller = vanzator

         Buyer =comparator



         Goods= marfa

         Production rang = gama de productie

         Requirement = cerinta

         To provide = a furniza

         Wholesale trade = comert en gross

         Retail trade = comert cu ridicata

         Foreign trade = comert exterior

         To deal with = a se ocupa de

         To carry out = a efectua

         Whare housing = activitatea de depozitare

         Damage = paguba

         Insurance policy = polita de asigurare

2. Written work - Write briefly on one of the following topics:

the function of trade;

transport function and requirements for an efficient transport activity;

means of communications used in the commercial activity;

the need of storing goods in adequate places;

services the banks provide their customers with;

the importance of the insurance functi


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