Commerce

Commerce is described as the effective process of exchanging products or services using some monetary aspect as well as the logistical process of transforming raw materials into usable products or services. Commerce in the proper sense is said to occur if the scale of this exchange is large enough to include logistics and transportation of these products or services across various boundaries. In order for commerce to occur effectively, trade and industry have to take place together in a harmonious way. 

Trade within the context of commerce is the process of buying and selling goods and services through the use of some medium of exchange. In our case, a trade would be the process that Mega Bakers use to sell its bread and other items from its bakery. In this regard, let's define another form of trade: barter trade or barter transactions. These are transactions where, rather than using money as the medium of exchange, the buyer and seller use a cashless medium. Barter transactions have to be agreed upon by both parties in order to be successful.

Industry within the context of commerce is any activity of an economic nature that involves how businesses process raw materials into final usable products and services. Using our Mega Bakers example, the industry would be the process used to transform ingredients into bread that is ready for sale.

Trade and industry are, therefore, subsets of commerce.

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