Social Studies Notes Pre-9th – Complete Notes

Chapter # 5 – Economic Development

5.2 Trade and Commerce

5.2.1   Define the Terms Trade, Commerce, E-Commerce, Import, Export, BoT, BoP, Wholesaling, Retailing and Investment.

1. Trade: Trade refers to the buying and selling of goods and services between people, companies, or countries.

2. Commerce: Commerce is the broader concept that includes trade, as well as activities related to buying, selling, and exchanging goods and services.

3. E-commerce: E-commerce refers to buying and selling goods and services over the internet or through electronic means.

4. Import: Import means bringing goods or services into one country from another country for sale or use.

5. Export: Export means sending goods or services to another country for sale or exchange.

6. Balance of Trade (BoT): Balance of Trade is the difference between the value of a country’s exports and its imports of goods.

7. Balance of Payments (BoP): Balance of Payments is the record of all economic transactions between residents of one country and the rest of the world.

8. Wholesaling: Wholesaling involves selling goods in large quantities to retailers or other businesses, rather than to individual customers.

9. Retailing: Retailing involves selling goods directly to individual customers for their personal use.

10. Investment: Investment is the act of putting money, time, or resources into something with the expectation of getting a profit or benefit in the future.