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COMMERCE AND TRADE
“COMMERCE” IS A GENERAL TERM USED TO DESCRIBE THE SALE AND
DISTRIBUTION OF GOODS AND SERVICES.
THE COMMERCIAL ACTIVITY OF BUYING AND SELLING GOODS AND SERVICES IS
CALLED “TRADE”.
TRADE IS DIVIDED INTO “HOME TRADE”, WHEN GOODS AND SERVICES ARE
BOUGHT AND SOLD INSIDE A COUNTRY AND “FOREIGN TRADE”, WHEN THIS
COMMERCIAL EXCHANGE HAPPENS BETWEEN TWO DIFFERENT COUNTRIES.
IN FOREIGN TRADE WE DISTINGUISH BETWEEN IMPORT, WHEN GOODS AND
SERVICES ARE BOUGHT FROM A FOREIGN SELLER AND EXPORT, WHEN GOODS AND
SERVICES ARE SOLD TO A FOREIGN BUYER.
SERVICES WHICH MAKE TRADE POSSIBLE ARE:
-BANKING
-INSURANCE
-TRANSPORT
-MARKETING
-ADVERTISING
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CHANNELS OF DISTRIBUTION
GOODS AND SERVICES PASS FROM MANUFACTURERS TO CONSUMERS THROUGH
DIFFERENT CHANNELS OF DISTRIBUTION. THE MOST POPULAR ARE:
-FROM THE MANUFACTURER TO THE CONSUMER (USING THE INTERNET FOR
EXAMPLE)
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