Trade is an essential part of commerce. The term 'Trade' is used to denote buying and selling.

Industry refers to economic activities, which are connected with conversion of resources into useful goods.

(i) Commerce refers to all those activities which are necessary for bringing goods from the place of production to the place of their consumption.
(ii) According to Evelyn Thomas "Commercial Operations deal with the Buying and Selling of goods, the exchange of commodities and the contribution of finished products".
(iii) Commerce includes not only trade but also services such as transport warehousing, packaging, insurance, banking and sales Promotion which are incidental or auxiliaries to trade.
(iv) Nearly every business transaction is a form of commerce. purchasing food at a restaurant, buying stocks on the stock market, selling goods in a store, drilling for oil etc.
(v) For example, international commerce takes place between countries, interstate commerce is done across state lines and electric commerce takes place via the Internet.

(i) Economic activities:
Commerce deals with all economic activities undertaken for profit.
(ii) Exchange of goods and Services:
Commerce involves an exchange of goods and services for profit.
(iii) Earning Motive :
Profit is an incentive for undertaking all commercial activities.

Tertiary industries do not produce any goods. These Industries produce utility services and sell them at a profit. They help trade, Industry and Commerce. This term also includes auxiliaries to trade like banking, insurance, warehouse, advertisement etc.

Selling all the goods produced at or near the production place is not possible.Hence, goods are to be sent to different places where they are demanded. The medium which moves men and materials from one place to another place is called transport.

The following are the characteristics of Commerce.
(i) Economic activities:
(1) All economic activities are undertaken to earn Profit. commerce deals with all economic activities undertaken for profit.
(2) So, commerce is concerned with all economic activities directed towards earning profit.
(ii) Exchange of goods and services :
(1) Commerce involves an exchange of goods and services for profit.
(2) Goods may be produced for the purpose of resale to the consumers.
 (iii) Earning motive :
(1) Profit is an incentive for undertaking all commercial activities.
(2) Any activity, which does not have the incentive of profit, will not be a part of commerce.
For Example: If a trader gives some goods as Charity.
(iv) Creation of Utility:
Commerce creates form, place and time utility in goods.
(v) Regularity of transaction:
The transaction should be regular. No isolated transaction will be a part of commerce.

Comparison between Industry, commerce and Trade