Explain the evolution of commerce. |
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| Ans : In the earlier stage, people were self-dependent. They use to produce goods and service they need by themselves. The concept of commerce was developed when people started to live in the bank of river and engaged in agriculture farming. Those who were skilled in one activities and have resources produce certain products. The evolution of commerce may be studies under the following stages of economic development:
i) Self-sufficient economic:- At the beginning stage of commerce, people were self- dependent. Their needs were limited; people fulfilled their needs by hunting and agriculture farming. At this stage of commercial development, there was no system of exchange; people of that period didn’t exchange their goods with others. Actually there was not a concept of commerce.
ii) Primitive barter system:- This is the beginning stage of commerce. At this stage, people started to exchange their extra product with other product that they do not have. In this economy, people were not self- dependent in every product. At barter economy products were exchange against the product. The development of barter system was the first practice of commerce.
iii) Money economy:- Money was introduced as a medium of exchange. People who have extra product used to sell in the market for money. In the beginning, currency of metal, shale and other valuable materials were introduced. As the result, the rapid development change in commerce emerged.
iv) Town economy:- The reproduction of money as the medium of exchanged has played the significant role in the development of business. At this stage, people involved in production and distribution started to settle in a certain locality which later on formed the local market. The growth of industry and commercial activities contributed to develop town economy. The town became the center of commercial activities.
v) National economy:- The gradual development of production and distribution lead to expansion to expansion and growth of a business. In this stage, people were concerned with the specific location for production. The development of supporting activities of a trade like communication, transportation, banking and insurance had made commerce easier. The product produced at one location is distributed throughout the country.
vi) International economy:- The mass development of industry and commerce lead to develop international economy. The development of economy has contributed to distribute products throughout the world through modern means of transportation. As a result, the concept of international trade spread throughout the world.
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