The role of Trade & Commerce in developing local economies
Duvha PowerStation. Picture: Twitter

The role of Trade & Commerce in developing local economies

The world has become a global marketplace and large volumes of goods, services, ideas, money, and technology are transported throughout the world, affecting the lives of billions of people in the process. Since 1994, most restrictions on the import and export trade industry have been lifted and have opened new doorways to international trade and companies investing in South Africa and within its borders to operate have successfully been able to increase trade in different goods & services that have grown the economy.

Global trade has boosted the world economy and brought enormous increases in overall wealth. At the same time, however, the distribution of the world’s wealth has become increasingly unequal, and the gap between the rich and poor nations has widened. Foreign countries exporting local products to South Africa have seen a boom in the business industry and in the overall economy of the country.

Commerce then, plays a vital role in generating employment opportunities. The growth in commerce looks after the smooth distribution of goods and services made available by the industry. Without commerce, industries will find it difficult to keep the pace of production. It also, helps to increase demand for goods on the 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.

Goods and services are likely to be imported from abroad for several reasons and most of the time, imports may be cheaper, or of better quality. They are also, more easily available or simply more appealing than locally produced goods. Trade & commerce therefore, plays an important role in growing economies and in advancing relationships between countries.

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