COMMERCE 101.

             CLASSIFICATION OF RETAIL TRADE.

Hey Guys, we are here again to learn study, understand and have fun. Let’s get straight to the matter at hand.

                                             RETAIL TRADE

         SMALL SCALE TRADE                    LARGE SCALE TRADE

         -HAWKING                                           -CHAIN STORE

         -MOBILE SHOP                                    -DEPARTMENTAL

         -TRADING                                            -SUPERMARKET   

         -MARKET TRADE                                -DISCOUNT HOUSE

         -STREET/ ROAD                                  -VARIETY STORES

         -STORES (URBAN & RURAL)               –HYPER MARKET

                                                                  -RETAIL COOPERATIVE.

                    METHOD OF CLASSIFICATION OF RETAIL STORE.

1.     Type of Good offered for Sale.

2.     By Location for example Rural or Urban Areas.

3.     By Ownership for example Independent or Cooperative.

4.     Number of Employee’s.

5.     By the Size of Employee’s.

SMALL SCALE TRADE.

As the name implies, it involves types of trading that are small in nature. For examples

a.)  HAWKING- is a kind of Trade whereby the person moves from one place to another carrying the

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COMMERCE 101.

                                       HOME TRADE.

Hey Guys, New Day New Things and we are here to learn and understand. Let’s get started on our topic.

HOME TRADE is the act of buying and selling goods within a country. It is also known as DOMESTIC or INTERNAL TRADE. In this Home Trade the same currency is used for exchange. Home Trade comprises of:

1.      Retailing.

2.     Wholesaling.

RETAIL TRADE.

Retail Trade is the act of selling goods and services to the final consumer in small quantities. Retailing is the final link in the chain of distribution of goods and services.

The Retailer is a person whose business is to purchase goods from the wholesaler or producer in small quantity, and sell in smaller units directly to the consumer. In order words, A Retailer is any trader who directs his efforts towards selling to the final consumers for the purpose of making profit and finishing the chain of production.

CHARACTERISTICS OF RETAIL TRADE.

1.     Retailer sells in smaller units or quantities.

2.     They stock a wide variety of goods.

3.     They sell directly to the consumers.

4.     Retail Trade involves bringing the goods nearer to the consumers.

5.     They are the final link in the chain of Distribution.

6.     The Business location is open to the general consumers.

FUNCTIONS OF THE RETAILER.

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COMMERCE 101.

                                  EXCHANGE.

Hey Guys, It’s a new day to live, learn and make decisions. You have made the decision to learn today and you will not regret it because we are discussing the topic above, so sit back relax and let’s learn today.

EXCHANGE is the process of giving out value in order to have something of value in return. In the olden days Batter was the main system of exchange i.e. good for good, but nowadays one exchange money for goods. Exchange arises because of excess production of goods and services.

INTER-RELATIONSHIP AMONG PRODUCTION, SPECIALIZATION & EXCHANGE.

      Exchange is as a result of Specialization and Production. They are related in the sense that Production is enhanced by the broken down processes that are performed by different people. Division of Labor and Specialization creates room for Mass Production.

Since individuals are not capable of producing all his requirements, the need for exchange arises.

                          HISTORY OF DIVISION OF LABOR.

One of the Forefathers of Economics, Adam Smith who further explained the Theory of Division of Labor in 1776, in his book “The Wealth of Nations.” Adam Smith visited a place where Pins were made and found out that Pin-Making involved eighteen different processes at that time.

He also found out that one man was coordinating all the processes of Pin-Making alone; as a result of this rigorous and slow process he was producing 20pins per day. Adam Smith came to a conclusion that if these Eighteen Pin-Making Processes were handled by different people, more pins will be produced.

      The idea of Division of Labor thought out by Smith was applied as a result, 48,000 Pins were

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