Trade & Commerce vocabulary list with definitions

Trade & Commerce vocabulary list with definitions

Trade & Commerce:

Trade is referred to as a basic economic activity that involves buying and selling of different goods and services between two or more parties involved in the transaction. 

Commerce involves all the activities that aid in promoting the exchange of goods and services from the manufacturer to the last customers.

List of Trade & Commerce vocabulary

Trade & Commerce vocabulary list with definition and examples

Agent: A person or company authorized to act on behalf of another in business transactions.

• Example: The real estate agent handled the sale of the property.

Asset: Anything of value owned by a person or company.

• Example: The company’s assets include cash, inventory, and real estate.

Auditor: A person who officially examines and verifies financial accounts.

• Example: The auditor reviewed the company’s financial statements to ensure accuracy.

Balance: The amount of money available in an account or the difference between credits and debits in financial accounts.

• Example: After all transactions, the balance in my checking account was $500.

Bond: A fixed income instrument representing a loan made by an investor to a borrower.

• Example: The company issued bonds to raise capital for expansion.

Broker: An individual or firm that arranges transactions between a buyer and a seller for a commission.

• Example: We used a broker to find the best insurance policy for our business.

Capital: Wealth in the form of money or other assets owned by a person or organization.

• Example: The startup required substantial capital to develop its new product.

Check: A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

• Example: I wrote a check to pay for the groceries.

Claim: A demand for something as rightful or due.

• Example: The customer filed a claim with the insurance company after the accident.

Client: A person or organization using the services of a lawyer, accountant, or other professional person or company.

• Example: The law firm has many high-profile clients.

Competition: Rivalry in the market, where businesses compete for the same customers.

• Example: The competition in the smartphone market is intense.

Contract: A legally binding agreement between two or more parties.

• Example: They signed a contract to deliver goods by the end of the month.

Corporation: A large company or group of companies authorized to act as a single entity.

• Example: Apple Inc. is a well-known corporation in the technology sector.

Cost: The amount of money required to purchase something or produce goods and services.

• Example: The cost of production has increased due to higher raw material prices.

Credit: The provision of resources (such as money) by one party to another where repayment is expected in the future.

• Example: She used her credit card to buy the new laptop.

Dealer: A person or company that buys and sells goods.

• Example: The car dealer offered a great discount on the new model.

Decrease: To become smaller or less in size, amount, or intensity.

• Example: There was a decrease in sales during the off-season.

Deduction: An amount that is subtracted from something, especially from taxable income or expenses.

• Example: The company allows deductions for business travel expenses.

Deed: A legal document that is signed and delivered, especially one regarding the ownership of property.

• Example: She received the deed to the house after the purchase was completed.

Deficit: The amount by which something, especially money, is too small.

• Example: The government is working to reduce the budget deficit.

Demand: The desire of purchasers, consumers, clients, or employers for a particular commodity, service, or other item.

• Example: There is a high demand for electric cars.

Deposit: A sum of money placed or kept in a bank account, usually to gain interest.

• Example: He made a large deposit into his savings account.

Depression: A severe and prolonged downturn in economic activity.

• Example: The Great Depression of the 1930s was a period of severe economic hardship.

Discount: A reduction in the usual price of something.

• Example: The store offered a 10% discount on all electronics.

Dividend: A sum of money paid regularly by a company to its shareholders out of its profits.

• Example: The company declared a dividend of $2 per share.

Draft: A preliminary version of a written work.

• Example: The team reviewed the draft of the new contract before finalizing it.

Duty: A tax or tariff imposed on imports and exports.

• Example: The duty on imported goods was increased to protect local industries.

Economic: Relating to economics or the economy.

• Example: The economic growth of the country has been impressive over the past decade.

Economics: The branch of knowledge concerned with the production, consumption, and transfer of wealth.

• Example: She is studying economics at the university.

Expenditure: The action of spending funds.

• Example: The government’s expenditure on healthcare has increased.

Export: Send goods or services to another country for sale.

• Example: The company exports its products to over 50 countries worldwide.

Extension: An increase in the time allowed for the payment of a debt or the completion of a task.

• Example: They applied for an extension on their loan repayment.

Finance: The management of large sums of money, especially by governments or large companies.

• Example: He works in the finance department of a multinational corporation.

Fiscal: Relating to government revenue, especially taxes.

• Example: The fiscal policies of the government have been under scrutiny.

Free Trade: International trade left to its natural course without tariffs, quotas, or other restrictions.

• Example: The agreement promotes free trade between the two countries.

Fund: A sum of money saved or made available for a particular purpose.

• Example: They set up a fund to support small businesses.

Goods: Merchandise or possessions.

• Example: The store offers a wide range of goods, from clothing to electronics.

Grantor: A person or institution that makes a grant or conveyance.

• Example: The grantor transferred the property to the new owner.

Gross: Total, before any deductions.

• Example: The company’s gross revenue for the year was $10 million.

Holding: A quantity of stock or other financial assets that someone owns.

• Example: He has significant holdings in several tech companies.

Import: Bring goods or services into a country from abroad for sale.

• Example: The country imports oil from the Middle East.

Income: Money received, especially on a regular basis, for work or through investments.

• Example: Her monthly income is derived from her salary and investments.

Insurance: A contract represented by a policy in which an individual receives financial protection or reimbursement against losses.

• Example: They have health insurance to cover medical expenses.

Interest: The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

• Example: The interest on the loan is 5% per year.

Investment: The action or process of investing money for profit.

• Example: They made a substantial investment in the stock market.

Invoice: A list of goods sent or services provided, with a statement of the sum due.

• Example: The supplier sent an invoice for the goods delivered.

Layoff: A temporary or permanent discharge of employees.

• Example: The company announced a layoff of 200 workers.

Lease: A contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for periodic payment.

• Example: They signed a lease for the new office space.

Liana: Not typically used in trade and commerce; refers to long-stemmed woody vines.

• Example: The rainforest was full of thick lianas hanging from the trees.

Loan: A sum of money borrowed that is expected to be paid back with interest.

• Example: She took out a loan to buy her new car.

Loss: When expenses exceed revenues, or a decrease in value.

• Example: The company reported a net loss for the third quarter.

Market: A place or system in which commercial dealings are conducted.

• Example: The stock market fluctuated wildly after the announcement.

Maximum: The greatest amount or degree possible.

• Example: The factory operates at maximum capacity during the holiday season.

Merchant: A person or company involved in wholesale trade.

• Example: The spice merchant traveled far and wide to trade his goods.

Minimum: The least amount possible.

• Example: The minimum order quantity is 100 units.

Monopoly: Exclusive control of a commodity or service in a particular market.

• Example: The government cracked down on the company’s monopoly over the telecommunications industry.

Mortgage: A loan used to purchase real estate, typically repaid over a long period.

• Example: They finally paid off their mortgage after 30 years.

Net Income: The total earnings after all expenses and taxes have been deducted.

• Example: The company’s net income for the year was $5 million.

Ownership: The act, state, or right of possessing something.

• Example: The ownership of the property was transferred to the new owner.

Partnership: A business operated by two or more people who share profits and responsibilities.

• Example: They formed a partnership to launch their new tech startup.

Penalty: A punishment imposed for breaking a law, rule, or contract.

• Example: There is a penalty for early withdrawal from the investment fund.

Preemption: The purchase of goods or shares by one person or party before the opportunity is offered to others.

• Example: The company’s preemption rights allowed it to purchase the shares before they went public.

Premium: The amount paid for insurance or an amount paid periodically to maintain an insurance policy.

• Example: She pays a higher premium for her comprehensive car insurance.

Price: The amount of money expected, required, or given in payment for something.

• Example: The price of oil has risen sharply this year.

Producer: A person, company, or country that makes, grows, or supplies goods or commodities for sale.

• Example: Brazil is a leading producer of coffee.

Profit: The financial gain made in a transaction or operation, after all expenses are deducted.

• Example: The company reported a 20% increase in profit last quarter.

Project: A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

• Example: The construction project will take two years to complete.

Proprietor: The owner of a business or property.

• Example: He is the sole proprietor of the local bakery.

Provision: A clause in a legal instrument, a law, etc., providing for a particular matter.

• Example: The contract includes a provision for early termination.

Purchaser: A person who buys something; a buyer.

• Example: The purchaser was happy with the quality of the goods.

Rate: A measure, quantity, or frequency, typically one measured against another quantity or measure.

• Example: The interest rate on the loan is 5% per annum.

Refund: A repayment of a sum of money, typically to a dissatisfied customer.

• Example: The store offers a full refund if you return the item within 30 days.

Repayment: The action of paying back a loan.

• Example: The loan agreement specifies the terms of repayment.

Reserve: Funds set aside for future use or specific purposes.

• Example: The company has a reserve fund for emergencies.

Resources: A stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization.

• Example: The company is investing in renewable resources.

Retail: The sale of goods to the public in relatively small quantities for use or consumption rather than for resale.

• Example: The new retail store offers a variety of household products.

Return: The profit made on an investment.

• Example: The return on investment was higher than expected.

Revenue: The income generated from normal business operations.

• Example: The company’s revenue increased by 10% last year.

Risk: The possibility of loss or injury.

• Example: Investing in stocks involves a certain level of risk.

Salary: A fixed regular payment, typically paid on a monthly or biweekly basis.

• Example: He received a salary increase after his annual performance review.

Sale: The exchange of a commodity for money.

• Example: The holiday sale attracted many customers to the store.

Sector: An area or portion that is distinct from others.

• Example: The tech sector has seen significant growth in recent years.

Seller: A person who sells something.

• Example: The seller agreed to lower the price of the car.

Share: A portion of stock in a company.

• Example: He bought 100 shares of the company’s stock.

Shop: A place where goods are sold.

• Example: She opened a small shop selling handmade crafts.

Smuggling: The illegal movement of goods into or out of a country.

• Example: The authorities cracked down on drug smuggling at the border.

Stock: The goods or merchandise kept on the premises of a shop or warehouse and available for sale or distribution.

• Example: The store has a wide range of stock available.

Store: A retail establishment selling items to the public.

• Example: The grocery store is open 24 hours a day.

Supply: The amount of a product that is available to customers.

• Example: The supply of fresh produce was affected by the storm.

Surplus: An amount of something left over when requirements have been met; an excess.

• Example: The company had a surplus of goods at the end of the year.

Tariff: A tax or duty to be paid on a particular class of imports or exports.

• Example: The government imposed tariffs on imported steel.

Tax: A compulsory contribution to state revenue, levied by the government on workers’ income and business profits.

• Example: The new tax policy will affect all taxpayers.

Technology: The application of scientific knowledge for practical purposes.

• Example: Advances in technology have revolutionized the manufacturing process.

Tenant: A person who occupies land or property rented from a landlord.

• Example: The tenant signed a one-year lease agreement.

Tender: An offer to carry out work, supply goods, or buy something at a stated fixed price.

• Example: The company submitted a tender for the construction project.

Trade Union: An organized association of workers formed to protect and further their rights and interests.

• Example: The trade union negotiated higher wages for its members.

Treasurer: A person responsible for the financial management of a corporation or other organization.

• Example: The treasurer presented the annual financial report at the meeting.

Value: The importance, worth, or usefulness of something.

• Example: The value of the property has increased over the years.

Wholesale: The selling of goods in large quantities to be retailed by others.

• Example: The company buys its products wholesale and sells them at retail prices.

Trade Deficit: The amount by which the cost of a country’s imports exceeds the value of its exports.

• Example: The trade deficit has widened due to increased imports.

Trade Surplus: The amount by which the value of a country’s exports exceeds the cost of its imports.

• Example: The country has a trade surplus thanks to its strong export market.

Market Economy: An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

• Example: The United States has a market economy.

Free Trade: International trade left to its natural course without tariffs, quotas, or other restrictions.

• Example: The agreement promotes free trade between the two countries.

Protectionism: The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.

• Example: The government’s protectionism policies include high tariffs on imported goods.

Quota: A limited or fixed number or amount of people or things.

• Example: The company met its sales quota for the quarter.

Subsidy: A sum of money granted by the government or a public body to assist an industry or business.

• Example: The government provided a subsidy to farmers affected by the drought.

Gross Domestic Product (GDP): The total value of goods produced and services provided in a country during one year.

• Example: The country’s GDP grew by 3% last year.

Supply and Demand: The amount of a commodity, product, or service available and the desire of buyers for it.

• Example: The price of gasoline is determined by supply and demand.

Exchange Rate: The value of one currency for the purpose of conversion to another.

• Example: The exchange rate fluctuated, making it more expensive to travel abroad.

Balance of Trade: The difference in value between a country’s imports and exports.

• Example: The balance of trade showed a surplus due to strong export performance.

Customs: The duties levied by a government on imported goods.

• Example: The customs officer inspected the imported goods.

Trade Agreement: A wide-ranging tax, tariff, and trade treaty that often includes investment guarantees.

• Example: The countries signed a trade agreement to boost economic cooperation.

Sanction: A threatened penalty for disobeying a law or rule.

• Example: The international community imposed sanctions on the country for its actions.

Embargo: An official ban on trade or other commercial activity with a particular country.

• Example: The government imposed an embargo on trade with the neighboring country.

Trade Barrier: Any regulation or policy that restricts international trade.

• Example: The new trade barriers made it difficult for companies to export goods.

Commodity: A raw material or primary agricultural product that can be bought and sold.

• Example: Oil is a valuable commodity in the global market.

Merchandise: Goods to be bought and sold.

• Example: The store offers a wide range of merchandise.

Trade Fair: An exhibition organized so that companies can showcase and demonstrate their latest products and services.

• Example: The annual trade fair attracts businesses from around the world.

E-commerce: Commercial transactions conducted electronically on the internet.

• Example: E-commerce has transformed the way people shop.

Franchise: The right or license granted to an individual or group to market a company’s goods or services.

• Example: They bought a franchise to open a fast-food restaurant.

Consignment: A batch of goods destined for or delivered to someone.

• Example: The consignment of electronics arrived at the warehouse.

Brokerage: The business or service of acting as a broker.

• Example: The real estate brokerage helped them find a new home.

Logistics: The detailed organization and implementation of a complex operation.

• Example: The logistics company handled the shipping and delivery of the goods.

Distribution: The action of sharing something out among a number of recipients.

• Example: The company handles the distribution of products to retailers.

Warehousing: The process of storing goods in a warehouse.

• Example: The company invested in new warehousing facilities to manage inventory better.

Inventory: A complete list of items such as property, goods in stock, or the contents of a building.

• Example: The store conducted an inventory check at the end of the month.

Procurement: The action of obtaining or procuring something.

• Example: The procurement department is responsible for acquiring all necessary supplies.

Supply Chain: The sequence of processes involved in the production and distribution of a commodity.

• Example: The company streamlined its supply chain to reduce costs.

Import Duty: A tax collected on imports and some exports by a country’s customs authorities.

• Example: The import duty on luxury goods is quite high.

Export License: A government document that authorizes the export of specific goods in specific quantities to a particular destination.

• Example: The company obtained an export license to ship its products overseas.

Trade Finance: The financing of international and domestic trade transactions.

• Example: Trade finance helps companies mitigate the risks of international transactions.

Freight Forwarder: A person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution.

• Example: The freight forwarder handled all the logistics for the international shipment.

Bill of Lading: A detailed list of a shipment of goods in the form of a receipt given by the carrier to the person consigning the goods.

• Example: The bill of lading must be presented at the port to receive the shipment.