Meaning chamber of commerce refers to the definition of chamber of commerce. A chamber of commerce can be defined in various ways. Basically, it refers to an association of people or type of business network where the members have some kind of a commercial relationship with each other.
In some instances, a chamber of commerce is also called as a board of trade. However, in the United States of America, this term is not used commonly. For most of the countries, the definition of the term "chamber of commerce" is different and it is delineated by the federal legislations.
Businessmen and entrepreneurs of various cities and towns constitute the chambers of commerce for the purpose of safeguarding their interests. The members of a chamber of commerce usually include businessmen coming from the same locality where a particular chamber of commerce is based.
An executive council of a chamber of commerce can be defined as that administrative body, which is set up by the members through election. This administrative body is responsible for the day to day operations of the chamber of commerce.
The chambers of commerce serve a variety of purposes of their members and they include the following:
- Advancement of trade in their own cities or towns
- Forbiddance of unnecessary contest through establishment of uniformity in wages, hours, and prices
- Strengthening municipal rules and regulations for the commercial interest of their localities
- Closure of disputes between members with the help of arbitrament
- Gathering statistics and information, which might be helpful for their members
- Maintaining a record of blacklist for the consultation of the members
The number of memberships of a chamber of commerce is variable and important chambers of commerce like the Paris Chamber of Commerce and Industry has a huge number of members.
The sizes of the chambers of commerce differ and according to this criteria, they can be categorized into the following types:
- City or town chamber of commerce
- County chamber of commerce
- Regional chamber of commerce
- International chamber of commerce
The chambers of commerce can also include economic development groups or corporations, visitors bureaus, as well as tourism bureaus.
The worldwide business membership models of chambers of commerce can be categorized into the two following types and they are defined as follows:
- Compulsory/public law chambers: According to compulsory or public law chambers of commerce, companies of a specific region are bound to take the membership of the chamber. This model is usually followed in the European Union countries like Germany, France, Spain, and Italy. Their principal operations include training, promotion of international trade, as well as provision of various services to the companies.
- Continental/private law chambers: According to continental or private law chambers of commerce, it is not compulsory for the companies to enrol as members of the chamber. However, the companies avail the membership to increase their business connections. This model is prevalent in English speaking countries like Canada, the United Kingdom, and the United States.