Importance of Commerce Introduction The importance of trade and commerce can be traced back to the long of history.

From the dawn of civilization people had been involved with trade and commerce to satisfy their needs that are unsatisfied and to fulfill their demands that are unmet. That indicates that the trade and commerce evolved with the existence of the human in this world from the beginning. As time grows by trade and commerce got momentum with diversified variables that had influenced the pattern and the way people were involving with trade and commerce. It had triggered the development of peoples economic life. The economy has experienced new facets and new dimensions were brought out as trade and commerce flourishes in different countries of the world. Like wise in Bangladesh, the role of trade and commerce in economic development can better be described with the geographical importance of this land. We know that from the historical period Bangladesh had been considered as one of the top fertile land for the trade and commerce for having thousands of rivers. Thats why the British tried to find the route to be here and later occupied this land for two hundred years. Then west-Pakistan ruled us and tried to occupy this land for its geographical importance. Now, lets have a look how trade & commerce played a significant role in the economic development of this country. Role of trade & commerce in Economic development of Bangladesh
The role of trade and commerce in Economic development of Bangladesh is summarized below1. 2. 3. 4. 5. 6. 7. 8. Improvement of standard of living Generation of Employment

growth of industrial development Increase in national income Infrastructure development

Increase in GDP Increase in international trade Support the agricultural sector.

1. Role in poverty reduction The major role that has been played by the mass introduction of trade and commerce in Bangladesh is the huge contribution in reduction of poverty. Since independence govt. has been pursuing to improve the quality of life of the people and reduce poverty through planned activities. The percentage of people below the poverty line declined from 70 percent in FY 197374 to 59 percent in FY 1991-92 to around 50 percent in 2000. This huge improving mainly

incurred by the expansion of trade and commerce in this country. In the following section we will go on more details how this poverty reduction has been caused by the trade and commerce. 2. Generation of Employment

The growth of commerce, industry and trade bring about the growth of agencies of trade in Bangladesh 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. Such as in Bangladesh the garments sector generates employment for almost 2 million people in this country. 3. Increase in standard of living Standard of living refers to 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. As due to expansion of trade and commerce more and more employments have been generated which added an extra income to the total amount earning of the poor people of this country. As more income means higher standard of living, thus trade and commerce is playing a vital role to the economic development of this country. 4. 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 labor and industrial progress. Thus in Bangladesh due to expansion of trade and commerce, more and more industrial development has been caused. 5. Increase in national income 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. In Bangladesh trade and commerce accounts for almost most of national income in this country. 6. Infrastructure development The total infrastructure development has been caused due to mainly by the expansion of trade and commerce. As industrial development occurs due to expansion of trade and commerce, it needs developed roads and transport as well as better infrastructures which propel the speed of

development through out the society. Infrastructures gets a momentum in an under developed country when more and more industry emerge in the economy.

7. Increase in GDP As trade and commerce introduces new and diversified dimensions to the economy of Bangladesh, more and more industry have been emerged. The total production in Bangladesh is increasing year by year. According to the World Bank report in the year 2010, the total number of GDP was $100.36 Billion US dollars at current prices which was only 8. Increase in international trade Through expansion of trade and commerce we can secure a fair and equitable distribution of goods throughout the world. With the help of transport and communication development, Bangladesh 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. As a result Bangladesh is earning a lot of foreign currency through exporting the domestic goods throughout the world. 9. Backward and forward linkages More and more backward and forward industries have been established as to support the main industry. Such as when a garments industry is established it needs other materials such asaccessories, human resources etc. thus more and more backward and forward linkage industry can be flourished through which economic development can be ensured. 10. Support the Agriculture sector As Bangladesh is an agricultural country, agriculture plays a vital role here. We can exploit the advantage of having the agricultural products here if we can further process these products. In Bangladesh, more and more industries have been emerging due to expansion of trade and commerce which will support the agriculture of our country. If agriculture survives and flourishes our economy will flourish. In this perspective the immergence of new industrial sector will boost up the economy of our country. 11. 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 in Bangladesh. Aids to trade such as banking, communication, advertising and publicity, transport, insurance, etc., are expanded and modernized for the smooth conduct of commerce. Thats why the expansion of trade and commerce made a ground for these sectors to be flourished.

10. Commerce helps during emergencies

We know Bangladesh is land of natural calamities. Every years the flood visits our country frequently which deters the trade and commerce to be flourished. During emergencies like floods, earthquakes and wars, commerce helps in reaching the essential requirements like foodstuff, medicines and relief measures to the affected areas of Bangladesh. Thus during the emergency situation Bangladeshi people are greatly befitted by this commercial institutions.

Conclusion In every spheres of economic life we see how greatly the role of trade and commerce are benefitting us through abundant opportunities. In the era of globalization, we can not ignore this. However, from the very beginning of our independence if we would have been able to realize the importance, we could have been developed a much further. Its the high time our govt. should take necessary measures to attract the local and international investors to take the industrial sector a more step ahead and keep the development running in full swing.