Reviewed by Sep 30, 2020| Updated on
Commerce has gained importance in the field of technology over the last decade. Who hasn’t heard electronic commerce, popularly known as e-commerce? Most of us have made purchases on one or many e-commerce platforms in the past few years and continue to embrace the same. Commerce has a long history as back as 150,000 years in the Roman empire. Barter system existed way back. That system had a significant shortcoming where whatever goods a person get as payment would not necessarily be stored for a long time. Hence, the introduction of currency as a standard form of money expedited the broader exchange of goods and services.
Commerce is an activity of trade among business entities and various other economic bodies. Typically, commerce means the exchange of goods or services or an item of some value between businesses or entities. From a macroeconomic perspective, countries are concerned with managing commerce to enhance the well-being of citizens by providing employment and producing useful goods and services.
Buying or selling of a single item by a customer is referred to as a transaction. At the same time, commerce relates to all such transactions put together in an economy. Most commerce is carried out internationally and denotes the buying and selling of goods between nations.
When properly managed, a commercial activity can promptly improve the living standards in a country and rise in its position across the globe. But, when commerce is left to run without regulations or foreseeing authority, large businesses can become too powerful. Thereby, they can impose unrealistic conditions on the citizens to benefit the business owners. Hence, commerce must be regulated by an independent overseeing body.
Today, commerce covers a subset in itself. It includes a complex web of companies that try to maximize their profits by contributing many products and services to the market at the lowest production cost. Technology and innovation command new entrants into commerce of an economy.