1.1 TRADE AND COMMERCE TRADE VS COMMERCE What type of services are involved with banking, for example? An example could be the transformation of wood taken from a forest to a factory to build a table and then to a shop for it to be sold. Choose a department and think of some activities that are involved in it. ONLINE RESOURCES IT and business advertising: pubblicità available: disponibile bulk: all ingrosso insurance: assicurazione to purchase: acquistare raw: grezzo retailer: dettagliante shipping: spedizione to store: immagazzinare supply: offerta warehouse: magazzino wholesaler: grossista 12 The basics Definitions Trade is the action of buying and selling goods and services. In the market world, the amount of products made and the number of services offered by businesses are based on what people that is customers want and need. This is called demand. The amount of products manufactured and services given is called supply. The prices of products are based on the number of products available and the amount of products people want to buy. This is what is called a market-led economy, that is, a system which tries to satisfy the needs of the market. Commerce is a more general term: it involves the exchange of goods among businesses or other countries and it also includes services like advertising, banking, communication, warehousing, distribution, transport, and insurance. The supply chain The supply chain involves people, resources and activities that offer services or manufacture products and make them available to the consumers, following their transformation from raw materials to finished goods. There are many departments involved in the process: from the planning and production departments to the sales and purchasing departments, from the human resources department to the warehousing and shipping departments. The distribution chain The distribution chain has to do with the last step of the supply chain: the transport, storage and sale of goods to the final customers. It can be: direct, that is from the producer to the consumer, or indirect, which means using intermediaries such as brokers, agents, or wholesalers who buy goods in bulk, store them and sell them to retailers of smaller shops. Of course, the more intermediaries there are, the higher the price gets compared to the manufacturers cost price.