by Trade:
- Trade is that branch of commerce which deals with exchange or transfer of goods and services.
- The origin and development of trade is the result of the prevalence of barter system.
- It includes sale and purchase of products only.
- In trade, a small amount of capital is required.
- The element of risk is also there in the trade.
Commerce:
- Commerce comprises of all those activities which are concerned with the distribution of goods and services so they may reach the consumers with a minimum of inconvenience.
- The origin and development of commerce is the result of continuous development of trade and industries.
- It includes ‘Trade’ and ‘Aids to Trade’.
- The amount of capital required is comparatively less.
- The risk is comparatively less in commerce.
Industry:
- Industry is concerned with raising producing processing or fabrication of goods and services.
- The origin and development of commerce is the result of continuous development of trade and industries.
- It includes ‘Trade’ and ‘Aids to Trade’.
- A large amount of capital is required for the establishment of an industry.
- The higher risk is there in the industry.
Major differences between industry, commerce and trade are as follows:
| Industry |
Trade |
Commerce |
|
| Meaning | It involves manufacturing activities such as extraction, construction and production of goods. | It involves transfer or exchange of products distributed by commerce. | It involves distribution of products produced by industries. |
| Capital Requirement | Requires huge amount of capital to establish industry. | Requires less capital than industry and commerce. | Requires less amount of capital than industry but larger amount than trade to operate its activities. |
| Level Of Risk | Riskier than commerce and trade. | Relatively less riskier than industry and commerce. | Less riskier than industry but involves high risk than trade. |
| Side | Supply side of the product. | Both side (demand and supply) of the product. | Demand side of the product. |
| Creation Of Utility | It creates form utility. | It creates processing utility. | It creates time utility and place utility. |
| Place Of Operation | It is operated in workshop or factory. | It is operated in the market. | It is operated from production center to distribution center. |
