Trade/Classification of Trade – JSS1 Business Studies Lesson Note (First Term)

Topic: trade

Meaning of Trade: trade is the buying and selling of goods and services. It can also be defined as the activities that cover exchange, buying, and selling of goods and services 

Branches of Trade 

Trade has three main branches which are as follows

1.       Home Trade: this is the act of exchanging, buying, and selling goods and services within a country. For example: Mr. Ade in Lagos buys goods from Mr. Aminu in Kano. This is a home trade because both the buyer {Mr. Ade} and the seller {Mr. Aminu} are Nigerians and they reside in Nigeria. In home trade only one currency e.g. (naira in Nigeria) is in use. Home  trade is divided into two wholesale and retail trade 
2.     Wholesale Trade: involves buying in large quantities from the manufacturers and selling to the retailers. Those involved in wholesale trade are called wholesalers 
3.     Retail Trade: this involves buying in small quantities from the wholesaler and selling in units to the final consumer. Those involved in retail trade are called retailers

 EVALUATION 

1.         List the functions of wholesalers and retailers in the chain of distribution.
2.         What is home trade?

1.     FOREIGN TRADE: this is the exchange, buying, and selling of goods and services between two countries. For example between Nigeria and Ghana. Foreign trade is also a trade between a citizen of one country and the citizen of another country. For example between Ade in Lagos, Nigeria, and Kofi in Accra, Ghana. Buying in foreign trade requires the use of foreign currency.

2.     ENTER-POT TRADE: this is buying from one foreign country to sell to another foreign country. Eg. Mr. Ade in Nigeria buys from Kofi in Ghana to sell to Mr. Johnson in London. 

EVALUATION

1.         Define trade
2.         List and explain the three main branches of trade

READING ASSIGNMENT

Business Studies for J.S.S 1 by O.A Lawal and other pages 14-15

WEEKEND ASSIGNMENT

1.         Foreign trade requires the use of    a. bids    c. cowry shells    c. foreign currency d. naira and kobo
2.         The main branches of trade are the following except    a. home trade b. enter-pot trade   c. foreign trade d. general trade
3.         Wholesale trade is a branch of    a. home trade b. foreign trade    c. none of the above     
4.         A trade between Obi in Nigeria and Ojo in Nigeria is known as    a. foreign trade   b. home trade    c. friendly trade d. Nigeria trade
5.         A trade between Nigeria and Togo is known as    a. neighbor trade    b. home trade c. Africans trade d. foreign trade

THEORY

1.         List the three main branches of trade
2.         What is retail trade?

REVISION /EVALUATION QUESTIONS

1.         Define occupation
2.         Give another name for the occupation
3.         What is your father’s occupation?
4.         Why is your father engaged in an occupation?
5.         Among the classes of occupation, where does your father’s occupation fall?