Trade Association is an association of traders or producers engaged in the same line of trade whose major aim is to protect and safeguard the interest of their members as well as their business. Examples are M.O.A.L.S (Motorcycle Operators Association of Lagos State)
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FEATURES OF TRADE ASSOCIATION
- Membership is voluntary
- They are regionally based
- Its main aim is to protect or safeguard the interest of members
- It is financed from the subscriptions paid by members.
FUNCTIONS OF TRADE ASSOCIATIONS
- They assist needy members financially and morally.
- They ensure uniformity in the mode of operation of their trade
- Provision of information (i.e. trade/technical/credit information) for members.
- Settlement of dispute among members.
- Education of members about latest developments affecting their trade.
- Fixing of minimum prices for their goods/services.
- Promotion of research work for the benefit of all members.
- Ensuring the maintenance of high standard in the quality of goods/services.
- Regulation of the activities of members and maintenance of professional ethics.
- Safeguarding and advancing the common interest of members.
- Serving as trade referees, especially on home trade
- Liaising with the government on policies affecting their trade and their trade members e.g. by acting as pressure groups.
DISADVANTAGES OF TRADE ASSOCIATION
- They sometimes restrict entry into their trade.
- They reduce supply of goods in order to create artificial scarcity, thereby linking prices
- They can hold the community to ransom, thereby causing crises (eg transporters)
- State five functions of trade associations
- List four features of trade association.
CHAMBERS OF COMMERCE
A chamber of commerce is a voluntary association of businessmen, tradesmen and entrepreneurs from different commercial fields or various lines of business in a town, city or country who have come together to promote trade, commerce, industry, agriculture and mining in a particular town, city, area or country e.g. Lagos Chamber of Commerce, Industry, Mines and Agriculture (LCCIMA).
A chamber of commerce is not restricted to a particular trade (i.e. it embraces all industrial commercial activities such as manufacturing trade, transport, banking etc.
FUNCTIONS OF CHAMBER OF COMMERCE
- They organize trade fairs and exhibitions
- They promote both home trade and foreign trade
- They co-operate with other chambers of commerce.
- Collection and dissemination of information to all members and the general public
- They settle disputes among members.
- They advise government on matters of trade.
- They issue certificate of origin.
- They act as pressure groups
- They act as watchdog in the administration of government laws
- Education of members through seminars conferences etc.
This is an association of producers that come together for the mutual economic and trade benefits of members.
AIMS AND FUNCTIONS OF MANUFACTURERS ASSOCIATION
- They promote trade both local and foreign
- They act as a pressure group
- They attract foreign investors
- They ensure the production of standard goods
- They promote export of manufactured goods.
- State five functions of chamber of commerce.
- Give two differences between a trade association and a chamber of commerce.
GENERAL EVALUATION QUESTIONS
- List eight means of payment in business
- Give five reasons for the protection of consumers
- State five measures taken to protect consumers
- What is a channel of distribution
- Explain five advantages of home trade over foreign trade
- Which union is formed by the workers of firms of similar lines of business to cater for their interests (a) Co-operative (b) Firms (c) Employee’s (d) Trade
- A voluntary body formed by members of a particular branch of trade or industry to represent the interest of members is known as (a) Industrial association (b) Co-operative society (c) Manufacturers’ association (d) Trade association.
- Which of the following advises members on tariff and currency regulations of other countries (a) Employers association (b) Trade union (c) Consumer association (d) Chamber of commerce
- Which of the following is a voluntary association of businessmen and professionals formed for the purpose of promoting trade (a) Labour union (b) Employer’s Association (c) Chamber of Commerce (d) Wholesaler’s Association
- Which of the following is a duty of the Employers Association (A) Procuring raw materials at regular intervals (b) Establishing a uniform wage scale (c) Negotiating with the government on sales (d) Discharging workers when production is low.
- What is a trade association?
- State four features of a chamber of commerce