what is commerce

Commerce is the exchange of goods or services between two or more parties. It is a large-scale organized system of activities, functions, procedures, and institutions that directly or indirectly contribute to the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality, and price through various channels from the original producers to the final consumers within local, regional, national, or international economies. Commerce consists of trade and aids to trade along the entire supply chain. Trade is the exchange of goods and services between buyers and sellers in return for a price at traditional (or online) marketplaces. It is categorized into domestic trade, including retail and wholesale, and international trade, which involves the exchange of goods and services across national borders. Aids to trade include transport, warehousing, distribution, advertising, insurance, and banking. Governments are tasked with managing the commerce of their nations in a way that meets the needs of their citizens by providing jobs and producing beneficial goods and services.