COMMERCE

INDUSTRY

CLASSIFICATION OF BUSINESS ACTIVITIES

INDUSTRY AND COMMERCE

INDUSTRY

INDUSTRY

Industry refers to the production of an economic good within an economy. A basic category of business activity. According to the Industrial Disputes Act, 1947. Industry means any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes.

INDUSTRIAL SECTORS

There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming, the secondary sector, involving refining, construction, and manufacturing, the tertiary sector, which deals with services such as law and medicine and distribution of manufactured goods.

Primary: This involved the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not process the products at all. In 2010 its contribution to the GDP was 16.1%. Secondary: This group is involved in the processing products from primary industries. This includes all factoriesthose that refine metals, produce furniture, or pack farm products such as meat. In 2010 its contribution to the GDP was 28.6%. Tertiary: This group is involved in the provision of services. They include teachers, managers and other service providers. In 2010 its contribution to the GDP was 55.3% .

GDP (Year 2010)

primary Secondary Tertiary

16%

55%

29%

Pie Diagram
Primary sector- 16.1 % Secondary sector- 28.6 % Tertiary sector- 55.3 %

HISTORY

Industry in the sense of manufacturing became a key sector of production and labour in European and North American countries during the Industrial Revolution. Industrial countries then assumed a capitalist economic policy. Railroads and steam-powered ships began speedily establishing links with previously unreachable world markets, enabling private companies to develop to an enormous size and wealth. Following the Industrial Revolution, perhaps a third of the world's economic output is derived from manufacturing industriesmore than agriculture's share.

Early industries involved manufacturing goods for trade. In medieval Europe, industry became dominated by the guilds in cities and towns, who offered mutual support for the member's interests and maintained standards of industry workmanship and ethical conduct. Many developed countries and many developing countries (India etc.) depend significantly on industry. Industries, the countries they reside in, and the economies of those countries are interlinked in a complex web of interdependence.

EXAMPLES
TEXTILE INDUSTRY

AUTOMOTIVE INDUSTRY FMCG INDUSTRY

COMMERCE

COMMERCE

Commerce means the whole system of an economy that constitutes an environment for business. Commerce is a system or an environment that affects the business prospects of an economy or a nation-state. We can also define it as a second component of business which includes all activities, functions and institutions involved in transferring goods from producers to consumers.

Commerce primarily expresses the fairly abstract notions of buying and selling, whereas trade may refer to the exchange of a specific class of goods. Business can refer to an organization set up for the purpose of engaging in manufacturing or exchange, as well as serving as a loose synonym of the abstract collective "commerce and industry".

E-COMMERCE

The Internet is now a flourishing industry. With the technology advancing at a fast rate, more and more people are open to computers and internet. Increasingly they are learning to utilize the Internet for their day to day needs. Here Ecommerce websites take a front seat, moving out to the millions of people searching for your kind of product or services online. Advantages of E-Commerce: Revealation - Your products showcased on your website, provides a huge exposure to the millions of visitors on the web. Time and Convenience - Time is one of the crucial factor in our lives now-a-days. A customer may find it difficult to visit your store physically everytime. Cost Effective - Sustaining a store in a primary locality is not highly expensive. On the contrary using the ecommerce is a whole lot easier technique of demonstrating and providing information about your products.

HISTORY

Some commentators trace the origins of commerce to the very start of communication in prehistoric times. In historic times, the introduction of currency as a standardized money facilitated a wider exchange of goods and services. The circulation of a standardized currency provides the major disadvantage to commerce of overcoming the "double coincidence of wants" necessary for barter trades to occur . Currency solved this problem by allowing a society as a whole to assign values and thus to collect goods and services effectively and to store them for later use, or to split them among several providers.

Today commerc e includes a complex system of companies th at try to maximize their profits by offering product s and services t o the market (whi ch consists both of individuals and other companies) at the lowest producti on cost.

Thank you.