THE STRUCTURE OF COMMERCE

Commerce is a process of the production and distribution of goods and the providing of services. The Chain of Commerce consists of: raw materials - manufacturer - wholesaler - retailer - consumer.

The production of goods starts at the raw material stage. When the raw materials are made into finished goods by the factories, it is called manufacturing. There are three kinds of manufacturing:  unit production - batch production - mass production.

The next stage in the cycle is the wholesaler, whose principal task is to store the goods, usually in large quantities and in many varieties. The wholesaler sells the goods to the retailers, who display the goods and sell them to consumers. Retail shops may be large, such as supermarkets or departmental stores, or small, as a corner shop. To distribute and sell the goods efficiently, every link in the Chain of Commerce needs the services of banking, transport, insurance and advertising. These services are called the Aids to Trade.

British banking is controlled by the Bank of England, which has its headquarters in London, but manufacturers, wholesalers, retailers and consumers deal mostly with commercial banks.

There are three main kinds of transport: land, sea and air.  Insurance is a financial protection against an event which may happen. Advertising also plays a very important part in commerce.

The main industries in Britain may be classified as: 1. manufacturing; 2. extractive; 3. construction; 4. agriculture and forestry; 5. fisheries; 6. tourism.

Manufacturing industries produce Britain’s major export, including heavy electrical and mechanical machinery such as power stations and generators, motor vehicles, oil, clothing, radar equipment, defence equipment, pharmaceuticals and aircraft. Extractive industries are coal mining, oil drilling, gold mining, tin mining, etc. Construction industries are concerned with the building of houses, shops and factories.