June 10, 2017

Difference Between Industry, Commerce And Trade

Industry is related to production of goods and services. commerce is related to distribution of products and trading is related to the transfer (exchange) of goods and services. There are several differences between them according to their meaning, capital, risk, operation etc.

Major differences between industry, commerce and trade are as follows:

1. Meaning

Industry: It involves manufacturing activities such as extraction, construction and production of goods.
Commerce: It involves distribution of products produced by industries,
Trade: It involves transfer or exchange of products distributed by commerce.

2. Capital Requirement

Industry: Requires huge amount of capital to establish industry.
Commerce: Requires less amount of capital than industry but larger amount than trade to operate its activities. 
Trade: Requires less capital than industry and commerce.

3. Level Of Risk

Industry: Riskier than commerce and trade.
Commerce: Less riskier than industry but involves high risk than trade.

4. Side

Industry: Supply side of the product.
Commerce: Demand side of the product.
Trade: Both side (demand and supply) of the product.

5. Creation Of Utility

Industry: It creates form utility.
Commerce: It creates time utility and place utility.
Trade: It creates processing utility

6. Place Of Operation

Industry: It is operated in workshop or factory.
Commerce: It is operated from production center to distribution center.
Trade: It is operated in the market