DEFINITION OF COMMERCE
Commerce is the study of production, distribution and exchange of goods and services aimed at satisfying human wants and in order to earn a living.
THE IMPORTANCE (FUNCTIONS) OF COMMERCE
- It provides employment opportunities for the people.
- It makes production and exchange of goods and services possible.
- It improves the standard of living of people by making modern goods available.
- It aids national and international co-operation by ensuring inter-dependence of nations
- It facilitates division of labour and specialization.
- It brings technological innovation and aids infrastructural development.
STAGES IN THE HISTORY AND DEVELOPMENT OF COMMERCE
(i) Earliest time: – Production was subsistent in nature.
(ii) Exchange of goods and services by barter.
(iii) Exchange of goods and services through the use of commodity money.
(iv) Introduction of money – notes and coins as a medium of exchange
(v) Improvement in aids to trade.
- What is Commerce?
- State four functions of Commerce .
FACTORS THAT DELAYED THE DEVELOPMENT OF COMMERCE IN NIGERIA/ WEST AFRICA
- Political instability
- Low savings
- Absence of developed markets
- Poor communication system
- Inadequate capital
- Low level of technology
- Inadequate infrastructural facilities / poor infrastructural facilities
- Low National income
FACTORS THAT HAVE CONTRIBUTED TO THE GROWTH OF COMMERCE IN NIGERIA/WEST AFRICA
- Development of modern techniques of production
- Political stability
- Development of financial institutions
- Development of efficient means of transportation and communication
- Availability of warehousing facilities
- Improvements in aids to trade e.g. Insurance, Advertising etc
- Advancement in levels of education / literacy
DIVISIONS OF COMMERCE
Commerce can be grouped into two main branches or divisions namely:
- Aids to trade
The aids to trade can be subdivided into:
(a) Transport (b) Insurance (c) Banking and Finance (d) Advertising
(e) Warehousing (f) Communication (g) Tourism
- Why is Commerce so essential to modern Society?
- Set out carefully the principal divisions of Commerce and give an idea of the relative importance of each division.
- The main divisions of commerce are (a) Home trade and foreign trade (b) Transportation and warehousing (c) Trade and aids to trade (d) Wholesale and Retail trade
- Which of the following is not a benefit of commerce? It (a) Facilitates the movement of goods and services (b) Provides employment to people (c) Increases the cost of living (d) Makes funds available for business activities
- All are aids to trade except (a) Advertising (b) Transportation (c) Retailing (d) Banking
- Which of the following can be defined as trade and aid to trade? (a) Advertising (b) Commerce (c) Warehousing (d) Retailing
- Which of the following is not a basic want of man? (a) Transport (b) Food (c) Water (d) Clothing
- State three ancillary services to trade .
- Mention three ways by which transport aids trade.
- What is Commerce?
- State and explain the importance of any five ancillary services to trade.
- Give any five advantages of advertising.
- State five ways in which warehousing is useful to businessmen.
- In what ways does transport aid trade.