Trade Commission
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Trade commissions (or trade com) and trade promotion boards keep a tab on the trading activities across the world. A trade commission enforces protection and antitrust laws to guard consumers and sustain fair competition in the market. On the other hand, a trade promotion board builds demand at the middleman level.
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The Importance of Trade Commissions and Trade Promotion Boards
The significant of trade commissions and trade promotion boards pertain to distinct areas of trade.
Trade Commissions
Trade commissions (or trade com) and trade promotion boards keep a tab on the trading activities across the world. A trade commission enforces protection and antitrust laws to guard consumers and sustain fair competition in the market. On the other hand, a trade promotion board builds demand at the middleman level.
The Importance of Trade Commissions and Trade Promotion Boards
The significant of trade commissions and trade promotion boards pertain to distinct areas of trade.
Trade Commissions
Their importance can be grouped into two broad categories:
- Consumer protection: Trade commissions shield consumers from fraud, unfair trade practices and deception in the trading marketplace. A trade commission files consumer complaints against trading organizations. Besides, a trade com addresses consumer enquiries related to various companies and their products.
- Fair competition: A trade commission protects and endorses healthy competition in the marketplace. It aims at increased efficiency among businesses and a wider choice of goods and services for consumers at competitive prices. It encourages all businesses to comply with regulations by educating businesses and consumers, investigating possible breaches and taking the necessary enforcement action.
Trade Promotion Boards
Although their efficacy varies in each country, trade promotion organizations (TPOs) work as an effective promotional tool for budding exporters. TPOs try to raise demand by offering special prices, free or subsidized display items, sales incentives, tickets to special events and gifts. They organize fairs and conduct events such as consumer-supplier meets and product promotion programs. They have been promoting overseas trading through offshore department stores. Besides, trade promotion boards conduct market surveys that are used by various agencies.
Major Trade Commissions and Trade Promotion Boards
The most prominent trade commissions in the world are:
- International Trade Commission (ITC)
- Australian Trade Commission (Austrade)
- Canadian Trade Commissioner Service
The most prominent promotion boards in the world are:
- ITPO (India Trade Promotion Organisation)
- ETPO (European Trade Promotion Organisation)
The common aim of both these organizations is to ensure that there is smooth trade and the trade volumes keep rising.
