DIVISION OF TRADE

Hey Guyz, We are Back with the continuation of the Topic we started last week. Hope your weekend was splendid cos mine was... Well let's get right to business.

1. HOME TRADE

We defined it in our last session and it is divided into: a.) Wholesale b.) Retail.

a. WHOLESALE TRADE- It is the buying of goods in large quantity from Producers and selling of goods in large quantity to Retailers. For Example, A Huge Store Like Next In Abuja Nigeria buys in large quantity from the companies that produce these goods in order to sell to their customers in large quantity which can be smaller supermarkets or stores.

b. RETAIL TRADE- It is the buying of goods in small quantity from Wholesalers and selling of goods in smaller quantity to consumers and customers. For Example, When Small Stores buy in smallquantities and sell in smaller quantities to you, like where you go to buy a pack of sugar is a Retail Store because they sell in small quantity to you.

2. INTERNATIONAL TRADE

We defined it in our last session and it has 2 types, which are: a.) Bilateral b.) Multilateral.

a. BILATERAL TRADE- It is a trading between two countries. Like when We in Nigeria buy goods online from other countries like the UK, USA etc.

b. MULTILATERAL TRADE- It is a trading between more than two countries. Like a Trade between Nigeria, Ghana & Kenya.

It is however divided into three, namely:

i. IMPORT- It is the act of bring in (buying) goods and services from other countries into your country of residence. That is receiving Goods and Services from a different Border or geographical Location.

ii. EXPORT- It is the act taking goods & services to other countries from your own country. It is selling goods and services to other countries from your country for the purpose of increasing your brand popularity.

iii. ENTRE-PORT- It is the act of buying goods & services from one country to re-sell to other countries. It is double-way.

AIDS-TO-TRADE

1. BANKING- They are there to provide funds in form of loan and overdraft to individuals and companies to promote their businesses and industries. They indeed help Trade move in accelerated form and also enable employment to be provided to more people.

2. TRANSPORTATION- This is essential for Businesses that depend heavily on transportation, that is moving of the goods from the Production point to the Distribution point (Market). So the provision of Good and Portable Roads in the communities is very important and this is one of the aids to trade that involves Government's input.

3. ADVERTISING- This is solely the responsibility of the company in question, they have the burden of increasing the awareness of the customers about their goods or services. Be it by Catalog, Free Sample, Trade Fair, Fliers or Tv & Radio.

4. WAREHOUSING- This is also for the company to handle, making provision for the storage of some goods for future purposes is vital to the healthy growth of the company and its revenue and profit. It means you are never without your goods for the purpose of Purchase etc.

5. COMMUNICATION- This is mostly within the company and amongst the employees of the company. It involves sending and receiving information from one place to another through the Internet, Intranet or Telephone etc.

6. INSURANCE- This involves putting up security for the business in case of Loss in order to get restored to former position in such cases. It's very important especially for big budget and capital intensive businesses and companies.

FUNCTIONS OF COMMERCE

1. It helps to develop the Technology in the country and it also provides new ideas for what technology can step in to make better.

2. It provides lots of Employment Opportunities for the masses and it improves people's standard of Living and the Per Capita Income.

3. It contributes to the factors that satisfy the wants of man, it helps get our wants and needs met.

SOME QUESTIONS:

1. Production ends when goods? (WAEC 1989)

2. If a Business Man imports stock fish with a view to exporting them to other countries, this form of trade is known as? (WAEC 1989)

3. Buying and selling of goods and services within the geographical areas of a country is called? (WAEC 1989)

4. Are Warehouses established to avoid changes in prices from resulting in shortage? True/False (WAEC 1989)

5. Is the Retailer the Last Link in the Chain of Distribution? Yes/No ( WAEC 1989)

This brings us to the end of today's session, Pls do attempt the questions above, this is one of the changes we have inputted. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.