Factors That Encourage The Growth of Commerce.
Especially for students who want to get information on commerce and factors that encourages its growth any where in the world, below are highlighted factors that promote and improve the growth of commerce.
1. GOOD TRANSPORT NETWORK: Improved and well developed means of transportation affects trade and commerce greatly. Transport systems like aeroplane, ship, electronic train can be used to move good from one place to another.
2. DEVELOPED COMMUNICATION SYSTEM : The developments of modern communication systems has eased and hastened contacts with people of different countries.
3. DEVELOPED FINANCIAL INSTITUTIONS: Financial institution have developed their services rapidly over the years. They provide quick and effective means of payments in foreign trade as well as making credits available for business.
4. SPECIALIZATION : Specialization has brought about interdependence. People now depend on one another while they produce what they have in comparative advantage and this has led to mass production.
5. PRESENCE OF DEVELOPED WAREHOUSING: Development of warehouse has enabled goods to be produced and kept ahead of demand. This help protects the goods from damages and help retain prize. Read Also, Factors that affects the growth of commerce in West Africa
6. ADVERTISING : Advertising has helped create great awareness which has helped retain increase in demand of product or goods and has helped promote the growth of commerce.
7. INSURANCE : This development has helped reduce risk involved in Business or Trade. Insurance also help promote the growth of sales and other commercial activities.
8. POPULATION GROWTH: Increase in world population has helped increase commercial activities which has helped encourage commerce growth. Read Also, How to Make Money in Africa
9. MODERN TRADING EQUIPMENTS: The use of modern business equipments make trading easy, cheap and fast. For instance, the use of internet, Online buying and selling, Online Payments etc all makes trading easy and it encourage commerce any where in the world.
The following points highlighted above all encourages fast Growth of trade, buying and selling known as Commerce. Thanks for reading.