Difference Between Industry, Commerce And Trade
Major dissimilarities or difference between industry, commerce and trade can be pointed out as follows:
1. introduction
Industry: It is a production activity which includes extraction, procurement, processing and conversion of raw materials into final goods or services.
Commerce: A business activity which is related to movement and distribution of products.
Trade: A business activity of transferring the ownership (exchange) of goods and services.
2. Activities
Industry: Mining, extraction, processing, construction, production etc. are some major activities of industry,
Commerce: Storing of goods, packaging and grading products, transportation, insurance etc. are some major activities of commerce.
Trade: Selling (exchange function) products and services to the final consumers.
3. Fixed Capital Required
Industry: Large amount of fixed capital is required to establish industry (more than commerce and trade)
Commerce: Less amount of fixed capital is required for commerce (less than industry but more than commerce)
Trade: Very limited amount of fixed capital (less than industry and commerce) required.
4. Working Capital Required
Industry: Large amount of working capital is required (more than commerce and trade)
Commerce: Less amount of working capital is required (less than industry but more than trade)
Trade: Working capital requirement is less than industry and commerce.
5. Risk Involved
Industry: Very high level of risk is involved
Commerce: Moderate level of risk is involved (less than industry but more than trade)
Trade: It involves less risk than industry and commerce
6. What They Represent Of Product?
Industry: Supply side
Commerce: Demand side
Trade: Demand and supply side
Also Read:
Also Read:
7. Type Of Utility Created
Industry: Form utility
Commerce: Place and time utility
Trade: Processing utility
8. Carried On
Industry: It can be carried on or operated on building, factory, workshop, mine etc.
Commerce: From place of production (factory or industry) to the market
Trade: At marketplace
Industry Vs Commerce Vs Trade (Comparison Chart)
I hope this post is helpful to understand the difference between industry, commerce and trade and to make comparison between them.
Industry Vs Commerce Vs Trade (Comparison Chart)
Basis
|
Industry
|
Commerce
|
Trade
|
Introduction
|
It is a production activity
|
Movement or distribution of goods
|
Transferring the ownership of goods
|
Activities
|
Mining,extraction, processing. production etc.
|
Storing, Grading, Packaging, Transportation etc.
|
Selling of products and services
|
Capital Needed
|
Large
|
Less
|
Very Limited
|
Risk
|
High
|
Moderate
|
Less
|
Represents
|
Supply of product
|
Demand of product
|
Demand and supply
|
Utility Creation
|
Form
|
Place and time
|
Processing
|
Carried On
|
Factory or workshop
|
Factory, industry, market
|
Market
|
I hope this post is helpful to understand the difference between industry, commerce and trade and to make comparison between them.
