THE BASICS OF COMMERCE Definitions Economic activities Businesses need Commerce start with includes Action of buying and selling Natural resources Land for agriculture and extraction of raw materials Are represented in a pyramidal shape Services to trade Advertising Place occupied by premises Wants Banking Something which makes life better Distribution Capital Financial Change according to different factors Insurance Transport Fixed Intellectual end with Market-led economy System which aims at satisfying the needs of the market Social Goods Labour Physical objects Entrepeneurship can be Supply Market forces that set prices Land Something essential for survival Trade Warehousing Factors of production Needs Action of exchanging products Durable Amount of a product producers can offer Over three years belong to Sectors of production Non-durable Demand Less than three years/Disposable Amount of a product consumers want to buy Services can be Elastic When it varies according to certain factors Inelastic When it remains stable, unaffected by economic factors Market-clearing price Optimal price which consumers are prepared to pay and which maximises producers' profits Intangible objects can be Personal Business Social Primary Extraction of raw materials Secondary Manufacturing of finished products Tertiary Services of all kinds Quaternary Intellectual industries Quinary Analysis, manipulation and interpretation of ideas, data and new technologies Economy Relationship between production, trade and supply of money in a particular country undergo processes of Industrialisation From the primary sector to the secondary sector of production Deindustrialisation From the secondary to the tertiary and quaternary sectors of production 126