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In today’s Commerce class, We will be learning about Trade Associations / Chambers of Commerce. We hope you enjoy the class!
- Definition of trade association and chamber of commerce
- Features of trade associations/chambers of commerce
- Functions of trade associations/chambers of commerce
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)
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 the 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 a 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 the supply of goods in order to create artificial scarcity, thereby hiking prices
- They can hold the community to ransom, thereby causing crises (eg transporters)
- State five functions of trade associations
- List four features of a 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 the government on matters of trade.
- They issue certificates of origin.
- They act as pressure groups
- They act as a 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 the export of manufactured goods.
- State five functions of a 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 to protect consumers
- What is a channel of distribution
- Explain five advantages of home trade over foreign trade
- What is a trade association?
- State four features of a chamber of commerce
- Essential Commerce for SSS by O. A Longe Page 177 – 180
- Comprehensive Commerce for SSS by J. U. Anyaele Page 327 – 336
We have come to the end of this class. We do 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.
In our next class, we will be learning about Industrial Combinations. We are very much eager to meet you there.
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