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commerce general name to indicate business activities (selling and buying of goods) |
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trade is a synonym of commerce but more specific includes business services (bank, insurance, means of transport, means of payment, advertising) is divided in two 515i89f parts: home and foreign |
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home trade are all business activities and services inside one country is slit into three steps: manufacture, wholesale and retail |
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foreign trade are all business activities and services outside one country is split into two parts: import and export |
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manufacture transforms the products from row material to finish or semi-finished products |
wholesale buys goods in large quantities from manufacturers and sells them in small quantities to retailers |
retail sells goods in small quantities to individual consumers |
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import is buying goods outside |
export is selling goods outside |
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e-commerce is a new modern way of selling and buying
in this you can leave out some steps and pay less (save up)
there are three kinds of economy because government cane have different roles
THE CENTRALLY PLANNED ECONOMY
the government decides everything
lack of competition
THE FREE MARKET ECONOMY
the government may still intervene even in free market economies
private companies compete freely in the marketplace and the market decides which products or services to buy and from whom
South
East Asia -
THE MIXED ECONOMY
some goods and services such as public transport, education, health care utilities (gas, electricity, etc.) are traditionally provided by the government
private companies are free
transferring productions of goods and services from the public to the private sector
the nationalised industries that during the 1980s were privatize by the Conservative Government are British Telecom, British Gas, British Petroleum, British Railways, British Airways
"denationalisation" consist in the selling of state industries to private sector
PROS
leads to greater competition, which can result in providing better goods and services and lower prices
consumers can have a greater choice and better services
CONS
does not necessarily increase competition and quality of goods and services
if competition is not increased, consumers don't always benefit from a better choice
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