Discuss the importance of business and industry.

Describe the relationship between

industry, commerce and trade. Explain what the deal is and explain your part.
Finally, discuss the importance of formal business studies in the modern era.
Name: Fred Brown Perry
Student ID: R2210D15334837
Module Name: Management Theory
Module code: UU-MBA-712-ZM
Date: 19.02.2023
Simply put, we define business as a source of employment. This creates employment
opportunities for many people in the country. According to Hambrick (1980), a
business is an economic activity that regularly produces and distributes goods and
services for the purpose of generating profit by satisfying human needs. Industry,
on the other hand, is a branch of business concerned with the production of goods
and services by processing raw materials. So, in this article, we are going to
discuss its importance for business and industry. It describes the relationship
between industry, commerce and commerce. Next, explain what commerce is and explain
its parts. Finally, the importance of formal studies for business in the modern
era will be discussed. Business and Industry Importance:
Businesses and industries have both positive and negative impacts on Earth's life
support systems. In human history, businesses have played a far greater role in
sustaining human life, far beyond producing goods and services within households
and villages. Their development has been driven by human needs, population growth,
and innovations in storage, transportation, agriculture, and manufacturing
technologies (Lund & Nielsen, 2018). Business and industry have evolved from
these preindustrial times and in various institutional settings: from the local
level of professional guilds and cooperatives to national enterprises and
expeditions, to more recent private stock ownership corporations and state-owned
enterprises. One can transfer his business by following certain legal formalities.
Industry on the other hand is part of the business activities which work for the
production of want-satisfying goods with the help of material resources readily
available (Raipa, & Petkiene, 2009). The relationship between industry,
commerce, and trade:
According to Rauch (2001), industry, trade, and commerce are closely related to
each other. The industry provides the base for commerce and commerce serves as the
spine of industry. Trading involves buying and selling goods. This is the essence
of commerce, as all business transactions revolve around exchange or exchange.
Trade provides a solid foundation upon which a trade superstructure is built. So
they influence and influence each other. Each component of a business must depend
on the other to achieve its goals. Industries provide goods and services for
commercial distribution (Marcoux, 2006). Commercial activity is impossible without
industrial production. Industrial production is meaningless without the
distribution of goods and services through trade. Commerce supports industry by
maintaining the smooth flow of goods from producers to buyers. Industry cannot
function without commerce and trade. Trade is the lifeblood of industry. Commerce
is also important to the industry and makes important choices such as what to
offer, when to deliver and for whom to build (Lund & Nielsen, 2018). Commerce
and its components:
Trade is the act of trade between economic entities and is the buying and selling
of goods. It consists of two parts: “Trade” and “Trade Support”. Trade means the
sale, transfer or exchange of goods. It includes buying and offering of merchandise
but excludes ancillary functions like transportation, banking, and warehousing
which along with trade constitutes commerce (Neu, & Brown, 2005). Trade can
further be classified into two categories like home and foreign trade. Home trade
means when sale and purchase of goods within the boundaries of the country while
foreign trade is trade between two or more two countries. An aid to trade is
another component that includes five important sectors that are: banking,
communications and transportation, warehousing insurance, and advertising. Banking
gives secure, effective, and helpful strategies for products, whether in-home
trade-in or remote exchanges (Hambrick, 1980). The Importance of Formal Business
Studies Today:
The results of business activities are felt in everyone's life. This effect is
here when ordinary people continue to work, consume, travel and invest. At the same
time, they indulge in rest and leisure. In addition to their obvious role in
individual entrepreneurship and personal development, businesses determine people's
income and occupations. Today, businesses play an important role and affect
people's quality of life. They have a great impact on the environment in which
people spend their daily lives (Neu, & Brown, 2005). In conclusion, this
article discusses the importance of business and industry, and the all-important
relationship between industry, commerce, and trade. It was noted that commercial
activity is impossible without the production of industry, which means that
industry provides the basis for trade and services and serves as the backbone of
trade. We also discussed commerce and its components, and finally discussed the
importance of formal studies for business in our time.
suggestion
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research. Academy of Management Review, 5(4), 567-575. Lund, M., & Nielsen, S.
(2018). Business model extensibility concept. Journal of Business Models, 6(1), 1-
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Entrepreneurship, 21(2), 50-67. Neu, WA, & Brown, S. W. (2005). Form
successful B2B services in product-dominated enterprises. Service Studies, 8(1), 3-
17. Raifa, A., & Petkin, E. (2009). Customer participation in public services:
co-production of services. Viesoji Politika Ir Administravimas, (27)
Rauch, J. E. (2001). Business and social network of international trade. Economic
Literature, 39(4), 1177-1203.