Back to: BUSINESS STUDIES JSS1
Welcome to class!
In today’s class, we will be talking about the division of commerce. Enjoy the class!
Division of Commerce
Meaning of trade
Trade is the act of buying and selling and exchange of goods and services. It is a major part of commerce.
Division of trade
Trade is divided into two divisions. These are
- Home or domestic trade.
- Foreign or international trade.
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Home trade/domestic trade:
Home trade can be described as buying, selling and exchange of goods and services among people living in the same country. E.g. A woman buying goods from Oyo state and travelled down Sokoto to sell the goods. In home trade, the same currency is used and there are no trade barriers like custom duties, tariffs, import duties, etc. Home trade can be subdivided into;
- wholesale trade
- Retail trade.
- Wholesale trade: It involves the buying of goods in large quantity from the manufacturers and selling in small quantities to the retailer. Traders who are involved in wholesale trade are called the wholesalers. Wholesalers buy in large quantity, therefore they must have large capital and big warehouse for their stocks.
- Retail trade: A person who involves in retail trade is called a retailer. Retail trade is the buying of many products in small quantities and selling them to the final consumers in units or bit by bit. A retailer sells directly to the final consumer.
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Foreign trade:
The foreign trade is also known as the International trade; It is the trade between the people of one country and the people of another country. E.g trade between Nigeria and Japan. It involves the use of foreign currencies to pay for goods and services bought from other countries. Foreign Trade can be subdivided into import, export and entrepot.
Difference between home and foreign trade
In our next class, we will be talking more about Production. We hope you enjoyed the class.
Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.
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