Introduction To Commerce SS1 Commerce Lesson Note

DEFINITION OF COMMERCE

Commerce is the study of the production, distribution and exchange of goods and services aimed at satisfying human wants to earn a living.

THE IMPORTANCE (FUNCTIONS) OF COMMERCE

1. It provides employment opportunities for the people.
2. It makes the production and exchange of goods and services possible. 
3. It improves the standard of living of people by making modern goods available. 
4. It aids national and international cooperation by ensuring the inter-dependence of nations 
5. It facilitates the division of labour and specialization.
6. It brings technological innovation and aids infrastructural development. 

STAGES IN THE HISTORY AND DEVELOPMENT OF COMMERCE

1. Earliest time: – Production was subsistent. 
2. Exchange of goods and services by barter.
3.  Exchange of goods and services through the use of commodity money.
4. Introduction of money notes and coins as a medium of exchange 
5. Improvement in aids to trade. 

FACTORS THAT DELAYED THE DEVELOPMENT OF COMMERCE  IN NIGERIA/ WEST AFRICA

1. Political instability
2. Low savings
3. Absence of developed markets
4. Poor communication system
5. Illiteracy
6. Inadequate capital
7. Low level of technology
8. Inadequate infrastructural facilities / poor infrastructural facilities
9. Low National income

FACTORS THAT HAVE CONTRIBUTED TO THE GROWTH OF COMMERCE IN NIGERIA/WEST AFRICA

1. Development of modern techniques of production 
2. Political stability 
3. Development of financial institutions 
4. Development of efficient means of transportation and communication 
5. Availability of warehousing facilities  
6. Improvements in aids to trade e.g. Insurance, Advertising etc 
7. Advancement in levels of education/literacy

DIVISIONS OF COMMERCE

Commerce can be grouped into two main branches or divisions namely:

1. Trade 
2. Aids to trade 

The aids to trade can be subdivided into: 

1. Transport 
2. Insurance
3. Banking and Finance
4. Advertising 
5. Warehousing 
6. Communication
7.  Tourism

ASSIGNMENT

1. 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

2. 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

3. All are aids to trade except (a) Advertising (b) Transportation (c) Retailing (d) Banking 
4. Which of the following can be defined as trade and aid to trade? (a) Advertising (b) Commerce (c) Warehousing (d) Retailing

5. Which of the following is not a basic want of man? (a) Transport (b) Food (c) Water (d) Clothing