COMMERCE 101.

    BALANCE OF PAYMENT AND BALANCE OF TRADE.

Hey Guyz, Happy Monday. How was the weekend, mine was cute, hope yours was lovely? Any way this is a new week and a new day to live, learn and have fun. So let’s get started.

Balance of Trade is the relationship between the values of a country’s import and export of visible items within a particular period of time.

If Visible Exports are more than Visible Imports, the Balance of Trade is said to be favorable. On the other hand, if the Visible Import exceeds the Visible Exports, the country is said to have unfavorable Balance of Trade.

Balance of Payment is a statement/record showing the relation between a country’s total payment to other countries and its total receipt from other countries in a year. In other words, it is the comparison of the sum total of a country’s receipt from export and the total payment made for import. Balance of Payment of a country shows the yearly statement of income and expenditure from visible and invisible export, and visible and invisible import respectively.

A Country’s Balance of Payment can be divided into three parts:

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COMMERCE 101

                         DIVISION OF FOREIGN TRADE.

Hey Guyz, what’s happening? How are you all doing, hope great? It’s a beautiful day to live, learn and be merry. Today we are continuing our commerce 101 series.

International Trade can be divided into:

a.     Export.

b.     Import.

c.      Enter-port.

IMPORT.

This is the act of buying goods and services from other countries. It is sometimes restricted to control the country’s Balance of Payment.

It can be divided into:

VISIBLE IMPORT- Consists of goods that can be seen and touched ( i.e. Tangible Goods), that are bought from other countries. For example, The Tangible Visible Imports of Nigeria are Automobiles, Machineries, Electronics etc.

INVISIBLE IMPORT- Consists of services that cannot be seen or touched, which are bought from other countries. For example, Banking.

BARRIERS OF INTERNATIONAL TRADE.

1.     Language Problem- Two countries that speak and understand the same language can trade easily. For example, Nigeria trading with America. While it will be difficult

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ECONS 101.

                            PRODUCTION.

Hey Guyz, Happy Thursday to you. How was your day yesterday, hope it was fruitful and cool. Today we are back to Econs 101 with the above topic, so let’s get straight to work.

Production is defined as the various economic activities aimed at the creation of goods and services, and the distribution of these goods and services to the final consumer, for the satisfaction of their human wants.

It is also the creation of Utility, which is the satisfaction derived from consuming a unit of a product. Production can only be complete when the goods and services get to the final consumers.

TYPES OF GOODS.

Goods can be classified into two major groups, namely:

1.     CONSUMER GOODS:  are goods and services that don’t need further production; they can satisfy the wants of the consumer in their form. Like Milk, Services like The Police etc.

Consumer Goods can further be grouped into the following:

a.     Durable Goods- They are goods that can be used over and over again. Like Radio, Television, Cooking Pots etc.

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