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Commerce relates to 'the exchange of goods and services, especially on a large scale'.[1] It includes legal, economic, political, social, cultural and technological systems that operate in a country or in international trade.


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See S.Wolk, “The Software business in transit –will exhaustion and defining sale or license soon. 4/IMCseries/2014/1/IMCPaperSeries2014–1_Wolk.pdfaccessed March 11th 2014. Default/files/publication/205104/doc/slspublic/heindl_wp6.pdf accessed. 46 Chapter3 THE PRINCIPLE OF FREE MOVEMENT OF GOODS.


The English-language word commerce has been derived from the Latin word commercium, from cum ('together') and merx ('merchandise').[2]


The caduceus - used today as the symbol of commerce,[3] and traditionally associated with the Roman god Mercury, patron of commerce, trickery and thieves.

Some commentators[which?] trace the origins of commerce to the very start of transactions in prehistoric times. Apart from traditional self-sufficiency, trading became a principal facility of prehistoric people, who bartered what they had for goods and services from each other (the barter system was popular in ancient times where one could get goods and services by offering the other person some other good and service according to their need instead of paying with monetary systems, which developed later). Historian Peter Watson and Ramesh Manickam date the history of long-distance commerce from circa 150,000 years ago.[4]

In historic times, the introduction of currency as a standardized money facilitated the wider exchange of goods and services. Numismatists have collections of tokens, which include coins from some Ancient-World large-scale societies, although initial usage involved unmarked lumps of precious metal.[5]

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The circulation of a standardized currency provides a method of overcoming the major disadvantage to commerce through use of a barter system, the 'double coincidence of wants' (which means if someone wants something from a person, that person should also be in need of a thing or a service which they can provide), necessary for barter trades to occur. For example, if a person who makes pots for a living needs a new house, he/she may wish to hire someone to build it for him/her. But he/she cannot make an equivalent number of pots to equal this service done for him/her, because even if the builder could build the house, the builder might not want many or need any pots.

Also, the barter system had a major drawback in that whatever goods a person get as payment may not necessarily store for long amounts of time. For example: if a person has got dozens of fruits as his payment, he/she can't store fruit for long or they may rot - which means a person will have to bear a huge loss.

Currency solved these problems by allowing a society as a whole to assign values[citation needed] and thus to collect goods and services effectively and to store them for later use, or to split them among minions.

During the Middle Ages, commerce developed in Europe through the trading of luxury goods at trade fairs. Some wealth became converted into movable wealth or capital.[citation needed]Banking systems developed where money on account was transferred[by whom?] across national boundaries.[6] Hand-to-hand markets became a feature of town life, and were regulated by town authorities.[7]

Today commerce includes as a subset of itself a complex system of companies which try to maximize their profits by offering products and services to the market (which consists both of individuals and groups and other companies or institutions) at the lowest production cost. A system of international trade has helped to develop the world economy; but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-world markets for local products (see Globalization.)

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See also[edit]

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  • Distribution (business)


Look up commerce in Wiktionary, the free dictionary.
  1. ^'commerce'. English: Oxford Living Dictionaries. Oxford University Press. n.d. Retrieved December 11, 2018. 1 The activity of buying and selling, especially on a large scale.
  2. ^Chisholm, Hugh, ed. (1911). 'Commerce' . Encyclopædia Britannica. 6 (11th ed.). Cambridge University Press. p. 766.
  3. ^Hans Biedermann, James Hulbert (trans.), Dictionary of Symbolism - Cultural Icons and the Meanings behind Them, p. 54.
  4. ^Watson, Peter (2005). Ideas : A History of Thought and Invention from Fire to Freud. HarperCollins. ISBN0-06-621064-X. Introduction......./
  5. ^Gold served especially commonly as a form of early money, as described in 'Origins of Money and of Banking' - Davies, Glyn (2002). Ideas: A history of money from ancient times to the present day. University of Wales Press. ISBN0-7083-1717-0.
  6. ^Martha C. Howell (12 April 2010). Commerce Before Capitalism in Europe, 1300-1600. Cambridge University Press. ISBN978-0-521-76046-1.
  7. ^Fernand Braudel (1982). Civilization and Capitalism, 15th-18th Century: The wheels of commerce. University of California Press. p. 30. ISBN978-0-520-08115-4.
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Table of content:

Part 1: Business Trends: Cultivating a Business in Diverse, Global Environments
Chapter 1 Taking Risks and Making Profits within the Dynamic Business Environment
Chapter 2 Understanding Economics and How It Affects Business
Chapter 3 Doing Business in Global Markets
Chapter 4 Demanding Ethical and Socially Responsible Behavior
Part 2: Business Ownership: Starting a Small Business
Chapter 5 How to Form a Business
Chapter 6 Entrepreneurship and Starting a Small Business
Part 3: Business Management: Empowering Employees to Satisfy Customers
Chapter 7 Management and Leadership
Chapter 8 Structuring Organizations for Today’s Challenges
Chapter 9 Production and Operations Management
Chapter 10 Motivating Employees
Part 4: Management of Human Resources: Motivating Employees to Produce Quality Goods and Services
Chapter 11 Human Resource Management: Finding and Keeping the Best Employees
Chapter 12 Dealing with Union and Employee-Management Issues
Part 5: Marketing: Developing and Implementing Customer-Oriented Marketing Plans
Chapter 13 Marketing: Helping Buyers Buy
Chapter 14 Developing and Pricing Goods and Services
Chapter 15 Distributing Products
Chapter 16 Using Effective Promotions
Part 6: Managing Financial Resources
Chapter 17 Understanding Accounting and Financial Information
Chapter 18 Financial Management
Chapter 19 Using Securities Markets for Financing and Investing Opportunities
Chapter 20 Money, Financial Institutions, and the Federal Reserve

Bonus Chapters
Bonus Chapter A Working Within the Legal Environment
Bonus Chapter B Using Technology to Manage Information
Bonus Chapter C Managing Risk
Bonus Chapter D Managing Personal Finances

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Product Details:

Language: English
ISBN-10: 0078023165
ISBN-13: 978-0078023163
ISBN-13: 9780078023163

Author:William G. Nickels, James M. McHugh, Susan M. McHugh

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