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Question

Difficulty: EasyMeaning, Scope, and Characteristics of Commerce

Match each commercial function listed on the left with its correct classification within the scope of commerce on the right.

  • Holding surplus agricultural produce in a storage depot until market demand risesAuxiliary to Trade (Aids to Trade)
  • Selling locally manufactured textiles to consumers in domestic retail storesHome Trade
  • Shipping processed palm oil to buyers in international markets across sea routesForeign Trade

Answer

Holding goods in a storage depot matches Auxiliary to Trade (Aids to Trade); selling textiles domestically matches Home Trade; shipping goods to international buyers matches Foreign Trade.
Commerce comprises Trade and Auxiliaries to Trade. Holding produce in storage is warehousing (an aid to trade), domestic retail sales belong to Home Trade, and international sales belong to Foreign Trade.

Step-by-Step Solution

1
Identify the primary branch of commerce represented by each activity on the left.
Storage represents Warehousing; selling domestically represents Home Trade; selling internationally represents Foreign Trade.
Commerce is divided into Trade (Home and Foreign) and Auxiliaries to Trade (services supporting trade like transport, warehousing, banking, and insurance).
2
Pair each activity with its corresponding classification on the right.
Storage depot → Auxiliary to Trade; Domestic retail sales → Home Trade; International shipping → Foreign Trade.
Warehousing bridges the time gap between production and consumption, Home Trade covers exchange within national borders, and Foreign Trade involves exchange across borders.

Key Concept

Scope and Classification of Commerce
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Topics

Meaning, Scope, and Characteristics of Commerce