This article will help you to learn about the difference between trade, commerce and industry.
Difference Between Trade, Commerce and Industry
Trade
1. Trade is that branch of commerce which deals with exchange or transfer of goods and services.
2. The origin and development of trade is the result of the prevalence of barter system.
3. It includes sale and purchase of products only.
4. In trade, a small amount of capital is required.
5. The element of risk is also there in the trade.
Commerce
1. 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.
2. The origin and development of commerce is the result of continuous development of trade and industries.
3. It includes ‘Trade’ and ‘Aids to Trade’.
4. The amount of capital required is comparatively less.
5. The risk is comparatively less in commerce.
Industry
1. Industry is concerned with raising producing processing or fabrication of goods and services.
2. The origin and development of commerce is the result of continuous development of trade and industries.
3. It includes ‘Trade’ and ‘Aids to Trade’.
4. A large amount of capital is required for the establishment of an industry.
5. The higher risk is there in the industry.