At
point of view economic, the business of producing a commodity is not complete
until it has been reached the consumer. To be reached these commodities to
consumers certain services of an ancillary nature like transportation, banking,
insurance, etc. are necessary.
Commerce
= Trade + Aids to Trade (or Auxiliary Services)
Trade Business:
Trade Business refers to the sale, transfer or
exchange of goods where excludes ancillary functions (transportation, banking,
insurance, warehousing, etc.) which along with constitute commerce.
Domestic Trade Business:
When exchange of commodities takes place within
the country, it is Domestic trade; payments for such trade are made in national
currency directly or through the national banking system, and the internal
transportation system is used for the movement of goods.
Domestic trade may be conducted on wholesale (sale of goods in
comparatively larger quantities to those traders who are in direct contract
with the consumers) or retail basis
(i.e., providing goods to the consumers in small quantities).
Overseas Trade Business:
When it crosses national boundaries, it is Foreign trade or Overseas trade. Entrepot
or re-export trade involves the import of overseas products or goods with a
view to re-exporting them and making a profit in the process.
International trade may be conducted in the form of import trade (buying foreign goods for domestic use) or export trade (selling home goods for foreign use). Because Overseas trade crosses national boundaries, payments for such trade are converted into the currency of the other country, from where the products import or to export but most of the time this currency used United State Dollar (USD) and means of international transportation have to be used.
