
Commerce


1.

Commercial activity involves transporting goods from one place to another and engaging in trade



2.

The purpose of a commercial transaction is to exchange two items successfully.

	
	e.g exchange $20,000 for a motor vehicle



3.

The aim of the transaction is to complete the exchange with as little effort or damage to both sides as possible




4.

Services involve performing services in return for fees, e.g haircuts, banking transactions, airline travel.




Free-market systems involve all people in commercial activity



Allocation systems involve most people having allocated jobs or roles. In these systems some commercial transactions still occur e.g. rent paid 

	for the use of buildings, supplies sourced from overseas





Commercial activity is arguably a high level activity, requiring knowlege of law, finance, the ability to travel and the ability to arrange transactions.




Nts.


purchasing an item in a shop covers all issues on a smaller scale.


requires the personal space of one-to-one communication, not a vertical authority structure


