What is Commerce and Benefits of Commerce and Explaination


1.    Commerce:
            “Commerce is the activity of buying and selling of goods and services, especially on a large scale. The system includes legal, economic, political, social, cultural and technological systems that are in operation in any country or internationally.”
            In other words, Commerce refers to the exchange of goods, services or something of value, between businesses or entities. As a broad concern, nations are concerned with managing commerce in a way that enhances the well-being of citizens, by providing jobs and producing beneficial goods and services.

2.    Benefits of Commerce:
There are some benefits of commerce.

i.            Commerce tries to satisfy increasing human wants
            Human wants are never ending. They can be classified as 'Basic wants' and 'Secondary wants'. Commerce has made distribution and movement of goods possible from one part of the world to the other. Today we can buy anything produced anywhere in the world. This has in turn enabled man to satisfy his innumerable wants and thereby promoting social welfare.

ii.            Commerce helps to increase our standard of living
            Standard of living refers to the quality of life enjoyed by the members of a society. When man consumes more products his standard of living improves. To consume a variety of goods he must be able to secure them first. Commerce helps us to get what we want at right time, right place and at right price and thus helps in improving our standard of living.

iii.            Commerce links producers and consumers
            Production is meant for ultimate consumption. Commerce makes possible to link producers and consumers through retailers and wholesalers and also through the aids to trade. Consumers get information about different goods through advertisements and salesmanship. The manufacturers are regularly informed about the likes and dislikes of the consumers through marketing research. Thus commerce creates contact between the centers of production and consumption and links them.
iv.            Commerce generates employment opportunities
            The growth of commerce, industry and trade bring about the growth of agencies of trade such as banking, transport, warehousing, advertising, etc. These agencies need people to look after their functioning. Increase in production results in increasing demand, which further results in boosting employment opportunities. Thus development of commerce generates more and more employment opportunities for millions of people in a country.

v.            Commerce increases national income and wealth
            When production increases, national income also increases. In a developed country, manufacturing industries and commerce together accounts for nearly 80% of total national income. It also helps to earn foreign exchange by way of exports and duties levied on imports. Thus, commerce increases the national income and wealth of a nation.

vi.            Commerce helps in expansion of aids to trade
            With the growth in trade and commerce there is growing need for expansion and modernization of aids to trade. Aids to trade such as banking, communication, advertising and publicity, transport, insurance, etc., are expanded and modernized for the smooth conduct of commerce.

vii.            Commerce helps in growth of industrial development
            Commerce looks after the smooth distribution of goods and services made available by the industry. Without commerce, industry will find it difficult to keep the pace of production. It helps to increase demand for goods on one hand and on the other hand it helps industries by getting them the necessary raw materials and other services. Hence, commerce helps in attaining better division of labour and industrial progress.

viii.            Commerce encourages international trade
            Through commerce we can secure a fair and equitable distribution of goods throughout the world. With the help of transport and communication development, countries can exchange their surplus commodities and earn foreign exchange, which is very useful for importing machinery and sophisticated technology. It ensures faster economic growth of the country.
ix.            Commerce benefits underdeveloped countries
            Underdeveloped countries can import skilled labour and technical know-how from developed countries. While the advance countries can import raw materials from under developed countries. This helps in laying down the seeds of industrialization in the underdeveloped countries.

x.            Commerce helps during emergencies
            During emergencies like floods, earthquakes and wars, commerce helps in reaching the essential requirements like foodstuff, medicines and relief measures to the affected areas.

3.    Chamber of Commerce:
            “A local association to promote and protect the interests of the business community in a particular place.”
            In another words, A chamber of commerce (or board of trade) is a form of business network, for example, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber. The board or council then hires a President, CEO or Executive Director, plus staffing appropriate to size, to run the organization.

Duties of Chamber of Commerce:
            The function of a chamber of Commerce is creating an environment in which businesses can prosper and promote interest in local business possibilities. Money, Planning, Inspiration, and Guidance, depends on the members working vigorously on the committees of their choice. Careful study is made of the community needs and an action plan is designed. The goal of the Action Plan is to improve the economic welfare of the community. The Chamber works for industrial and business development, which supports new residents with their revenues for our community. It provides educational opportunities and assists businesses with the latest marketing and promotional techniques.


Working of Chamber of Commerce:
            The Chamber works for the ever-increasing population, assuring additional customers and income. It works toward the increasing development of highways, recreational areas, new industries, and the expansion of existing industries; all of which increase the demand for services. The Chamber provides an expanding market for construction, real estate and insurance professionals by promoting business, and attracting new industries and residents. Potential customers are referred to members on a daily basis. The Chamber works continuously for the growth of the city, business expansion and population increase to insure the professional a prosperous place in which to make a living.

Faisalabad Chamber of Commerce & Industry
            FCCI established in 1975 Working under Directorate General of Trade Organizations (DGTO), formally DTO (Ministry of Commerce), FCCI is a corporate body originally licensed by the Government of Pakistan under the trade organization ordinance 1961 (Revised 2007). The Faisalabad Chamber of Commerce & Industry (FCCI) is a corporate body licensed by the Government of Pakistan under the trade organization ordinance 1961.
President of Faisalabad Chamber of Commerce.
            Now today the president of FCCI is Ch. Muhammad Nawaz and he belonged from Faisalabad. In 2014-2015 Engr. Rizwan Ashraf was the president of FCCI.

Goals of Chamber of Commerce
·         To create and foster cordial working relationship among businesses and between businesses and the community at large.
·         To participate actively and rather proactively in the development of public policy; as it affects economic growth and development for the country.
·         To effectively express the views of the business community at appropriate levels and forums of the government particularly on matters of relevance to Faisalabad and this area.
·         To promote private enterprises, business excellence, and encourage individual as well as collective achievements.
·         To provide the resources deemed necessary to ensure proper levels of member’s services in addition to strengthening the member’s involvement in the community through this chamber.
·         To reinforce the Organization through increasing its membership and resource base strategic Plans.
·         The Strategic Plan enshrines my commitment to provide an excellent standard of service and programs designed to continuously meet the needs of our members.

4.    Ministry of Commerce
            The Ministry of Commerce is a Cabinet-level ministry of Government of Pakistan concerned with the growth of national economic growth and commerce development and promotion. It is governed by public appointed Commerce minister, who is required to be the Member of Parliament of Pakistan. It also consists of bureaucratic staff, and its current government appointed Bureaucratic officer is Mr. Munir Qureshi.
President of Ministry of Commerce:
          The President of Ministry of Commerce is Engr. Khurram Dastgir Khan. Khurram Dastgir Khan (12 August 1970), is a Pakistani politician, electrical engineer, economist, conservative figure, and the incumbent Commerce minister of Pakistan, appointed in the Ministry on 12 January 2014. He is also a highly controversial figure because of an act of his father which occurred in 1964 in Gujranwala . However, Mr. Dastgir remains an influential figure and has successfully defended his constituency multiple times and has played a leading role in the induction of a number of acts in Parliament.
Duties of Ministry of Commerce
Under the Rules of Business 1973, Commerce Division is assigned the following Duties:
Ø  Imports and exports across custom frontiers
Ø  Export promotion
Ø  Commercial intelligence and statistics
Ø  Tariff policy and its implementation
Ø  Anti-dumping duties, countervailing duties and safeguard laws
Ø  Inter-Provincial trade
Ø  Domestic Commerce
Ø  Organization and control of Chambers and trade associations
Ø  Law of Insurance and regulation and control of Insurance companies
Ø  Administrative Control of Attached Departments/Organizations
Ø  Selection of Trade Officers for posting in Pakistan’s Missions abroad


Working of Ministry of Commerce
In order for the smooth functioning, the Department is divided into eight divisions,
Ø  Administrative and General Division
Ø  Finance Division
Ø  Economic Division
Ø  Trade Policy Division
Ø  Foreign Trade Territorial Division
Ø  State Trading & Infrastructure Division
Ø  Supply Division
Ø  Plantation Division

The various offices/ organizations under the administrative control of the Department are:
Ø  Three Attached Offices,
Ø  Eleven Subordinate Offices,
Ø  Ten Autonomous Bodies,
Ø  Five Public Sector Undertakings,
Ø  Advisory Bodies,
Ø  Fourteen Export Promotion Councils and
Ø  Other Organizations.

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5.   International Commerce
            The buying and selling of goods between sovereign nations. International commerce allows countries to take advantage of competitive advantages in certain areas, while diminishing disadvantages in other areas. To help facilitate international buying and selling among countries, a variety of national and local government agencies have been set up, including the International Chamber of Commerce (ICC).

International Chamber of Commerce
            The International Chamber of Commerce (ICC) was founded in 1919 to serve world business by promoting trade and investment, open markets for goods and services, and the free flow of capital. The organization’s international secretariat was established in Paris and the ICC’s International Court of Arbitration was created in 1923.       
            The International Chamber of Commerce promotes international trade and investment, and helps business meet the challenges and opportunities of globalization. ICC has three main activities – rule setting, arbitration and policy – and provides essential services such as ICC Arbitration, training, commercial crime fighting and customs facilitation.

6.    Pakistan Imports and Exports items 2015:
            Pakistan is a member of the WTO and has bilateral and multilateral trade agreements with many nations and international organizations. It is part of the South Asian Free Trade Area agreement and the China – Pakistan Free Trade Agreement.

Major Exports:
            Pakistan exports lots of different items to a dozen of countries. Following is the list of exports items.
1.      Rice
2.      Cotton
3.      Household furnishings and furniture.      
4.      Cotton cloths
5.      Fabrics and Carpets and Rugs
6.      Textile apparel and household furnishings
7.      Sport goods
8.      Camping apparel
9.      Footwear and gears
10.  Toys
11.  Bicycles
12.  Fans
13.   Cook wares
14.  House and garden wares
15.  Leather bags
16.  Chemical
17.  Dates, mangoes, oranges and vegetables
Major Imports:
1.      Vehicles and spare parts.
2.      Edible Oil.
3.      Plastic material.
4.      Paper Board
5.      Iron ore and steel.
6.      Pharmaceutical products.
7.      Electronic equipment
8.      Machines, engines, pumps
9.      Fertilizers:
10.  Manmade staple fibers:
11.  Manmade filaments:
12.   Organic chemicals

7.    Pak China Economic Corridor:
          The China–Pakistan Economic Corridor (CPEC) is an ongoing development megaproject which aims to connect Gwadar Port in southwestern Pakistan to China’s northwestern autonomous region of Xinjiang, via a network of highways, railways and pipelines to transport oil and gas. The economic corridor is considered central to China–Pakistan relations and will run about 3,000 km from Gwadar to Kashgar. Overall construction costs are estimated at over $46 billion, with the entire project expected to be completed in several years. The Corridor is an extension of China’s proposed 21st century Silk Road initiative. According to a First post report, "this is the biggest overseas investment by China announced yet and the corridor is expected to be operational within three years and will be a strategic game changer in the region, which would go a long way in making Pakistan a richer and stronger entity than ever before."



History of Pak China Economic Corridor:
            The project was first proposed by Chinese Premier Li Keqiang and Nawaz Sharif on 22 May 2013 in Islamabad. The Pak-China Economic Corridor Secretariat was inaugurated in Islamabad on 27 August 2013.  In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans for an economic corridor in Pakistan. Two months later, Pakistan Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to discuss further plans. The project took shape during Sharif's tenure.

8.    History of Frederick .W. Taylor:
            Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency. He was one of the first management consultants. Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era (1890s-1920s). Taylor summed up his efficiency techniques in his 1911 book The Principles of Scientific Management. His pioneering work in applying engineering principles to the work done on the factory floor was instrumental in the creation and development of the branch of engineering that is now known as industrial engineering. Taylor was also an athlete who competed nationally in tennis and golf.

Work of Frederick . W. Taylor:
            Taylor was a mechanical engineer who sought to improve industrial efficiency. Taylor is regarded as the father of scientific management, and was one of the first management consultants and director of a famous firm. In Peter Drucker's description,
            Frederick W. Taylor was the first man in recorded history who deemed work deserving of systematic observation and study. On Taylor's 'scientific management' rests, above all, the tremendous surge of affluence in the last seventy-five years which has lifted the working masses in the developed countries well above any level recorded before, even for the well-to-do. Taylor, though the Isaac Newton (or perhaps the Archimedes) of the science of work, laid only first foundations, however. Not much has been added to them since – even though he has been dead all of sixty years.

Taylor's scientific management consisted of four principles:
            Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250).

            Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. Future US Supreme Court justice Louis Brandeis coined the term scientific management in the course of his argument for the Eastern Rate Case before the Interstate Commerce Commission in 1910. Brandeis argued that railroads, when governed according to Taylor's principles, did not need to raise rates to increase wages. Taylor used Brandeis's term in the title of his monograph The Principles of Scientific Management, published in 1911. The Eastern Rate Case propelled Taylor's ideas to the forefront of the management agenda. Taylor wrote to Brandeis "I have rarely seen a new movement started with such great momentum as you have given this one." Taylor's approach is also often referred to as Taylor's Principles, or, frequently disparagingly, as Taylorism.

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