UU-MBA712-Theories of Management

Week 3 assignment
R2108D12568695
Glennard Samuels
Business is the constant production and industry of goods and services, and industry refers to a
group of businesses that are related to similar goods and services (Mahajan, 2009). The
development of business and industry goes hand in hand in the modern world. Both entities
play a very significant role in the development of economies and societies. They are the force
that drives growth, employment, and innovation. This essay will seek to explain the significance
of business and industry, explore the relationship between industry, commerce, and trade,
define commerce and its components parts and discuss the relevance in today’s economic
environment.

Business and industry are the backbone of all economic systems around the world. It is the
force that drives economic growth and development. Business provides a boost from
economies by providing employment, skills, and revenue with the utilizing the natural
resources. For example, Amazon is an American tech multinational who is specialized in e-
commerce, cloud computing, digital steaming and artificial intelligence. Their most common
service they provide is online shopping where customers are provided with various online stores
with several products and services. It is the second largest employer with more than one million
employees and has facilities in place to improve the skills of its staff through training programs.

Business is divided into two categories being the industry and commerce. Industry is the
production side of business (Maamar, 2003). it is focused on business activities such as
increasing production, processing, or manufacturing of products. The industry can be classified
as follows.

 Primary
 Genetic
 Extractive
 Manufacturing
 Construction
 Service

One the other hand commerce is medium through which these goods and services are
transmitted to who needs them. Finally, trade is exchange of goods and services for currency
and excludes auxiliary activities (Maamar, 2003). Industry, commerce, and trade are
interconnected components of the modern economic system. Industries produce goods and
services, commerce facilitates their exchange, and trade allows for the movement of goods and
services across borders.

Commerce includes two types of trade activities:

 Trade
 Auxiliaries to trade

Since trade is the exchange of goods and services for money and can be referred to as buying
and selling. These activities require facilities that will allow the purchase and sale of goods and
services. These are called auxiliaries to trade, these include banking, communication,
advertising, packaging and warehouse.

The formal study of business today plays a crucial role in equipping person with the necessary
knowledge, skills and mindset necessary to thrive in a dynamic environment. It provides a solid
foundation in the various business disciplines such as finance, marketing, accounting,
economics, and entrepreneurship thus creating an innovative mind to comprehend complexities
in the business environment. Additionally, it fosters environment for critical thinking, problem
solving and development of a strategic mindset which involves evaluating long-term objectives
and developing plans to achieve them. Therefore, a formal study of business provides a basis for
what is a business, how markets operate and how it is affected by global events.

In closing, the study of business has highlighted the various benefits since the beginning of
time. It has identified that industry and commerce are subset activities for business and are all
interconnected where they provide goods and services to their consumers through trade and
auxiliaries of trade.

Mahajan, J. (2009). Business organisation and management. Global Media.

https://ebookcentral.proquest.com/lib/UNICAF/detail.action?docID=3011427.
Maamar,, Z. (2003). Commerce, e-commerce, and m-commerce: what comes next? Commun.
ACM. 46. 251-257.