Topics in CommerceContract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explained Types of production in commerce Commerce: Definitions and Scopes of Commerce Differences between balance of trade and balance of payments Balance of payment deficit and balance of payment surplus Disadvantages of foreign trade Divisions of foreign trade
Academic Questions in Commerce
In commerce, the concept of paying in advanced is termed _____.
A. Advanced payment
B. Up payment
C. Forward payment
E. Uphill payment
In commerce, the concept of 'buy now, pay later' is termed _____.
A. Unadventurous payment
B. Buy on credit payment
C. Deferred payment
D. Postponed payment
E. Owed payment
F. Future payment
In commerce, which of the following is false with regards to a commodity?
A. A commodity must always have a market value
B. Rendered services are also instances of commodities
C. Products applicable to commodities can be bought or sold with money
D. A commodity must be standardized
E. A commodity must be usable upon delivery
F. Commodities can be traded in the futures market
Whatever is being marketed must always provide value to its potential consumers.
Which of the following is not a branch of marketing?
D. Search Media Optimization
E. Social Media Optimization
Which of the following is not a characteristics of commerce?
A. The only aim of commerce is to make profit
B. It is a discontinuous process after profit had been made
C. It is accompanied with challenges and uncertainties
D. It is 100% business and economic activity
E. Transaction processes are always involved in commerce
F. It connects the process of production and marketing
Which of the following is not a function of commerce?
A. Unnecessary in times of emergencies like earthquakes and wars
B. Facilitates mass production of goods
C. Influences transportation network within and outside a state
D. Attempts to satisfy human needs and wants
E. Improves the standard of living
F. Acts as an online business link between buyers and sellers
One of the following is a form of division of labour.
Division of labour is defined as the act splitting a goal into a number of different processes such that each process is done by a different person or group of persons.
Please read on the concept of division of labour here.
You can read on the advantages of division of labour here.
For a factory or company to effectively carry out division of labour, certain conditions must be met. Below are some of the needed conditions required for division of labour:
A large pool of economists are of the opinion that division of labour will thrive where there is a big market for manufactured products.
Please read on the concept of market in economics here.
When the market for a product is small, a producer will make little sales or profit on such product. The producer will also find it difficult to pay other people to work for him.
Conversely, a large factory will embark on division of labour if there is a large market to sell their variety of products.
Please read on production here.
Division of labour is necessary for some jobs while it remains unrealistic for other jobs.
Consider the instance below:
Please read on the elements of management here.
An entrepreneur with little capital will find it difficult to embark on division of labour while another with a huge capital will likely embrace division of labour since there is enough money to pay the workers.
Please read on the concept and types of cost here.
Also, availability of capital will influence the purchase of machineries for production. Meanwhile, understand that division of labour is associated with the use of machines or technology in most cases.
Producers who makes a good amount of money from the sale of their products will likely support the possibility of division of labour. This is true because producers will always further the production of their product to a larger scale when the opportunity arises. This is a concept of the law of supply.
Please read on supply, law of supply and supply curve here.
Producers who also make good returns from the sale of their products may also choose to expand their business by establishing it in other locations.
You can read on advertising here.
There can only be division of labour where labour is available. Think of labour as those who are hired to work for a factory or company.
The scarcity of labour will lead to scarcity of division of labour even when there is availability of capital.
Please read on the forms of division of labour here.
An entrepreneur who lacks the skills and ability necessary to organize production on a large scale may find it difficult to manage and direct the workers, especially towards their fields of expertise. As a result, such entrepreneur may not be able to employ suitable persons to work in their organization.
Please read more on management and its importance here.
When a staff or hired labour does not understand the specific job they are meant to perform, division of labour may not scale well. Such staff perform other duties outside their job specification.
Please read on business and its characteristics here.
Division of labour will flourish in a society where a good transport system is present.
A good transport system is a requirement for having a large market. Consequently, a large market will encourage division of labour.
Please read more on transportation here.
Meanwhile, always understand that drivers who transport products for marketing are also a part of the team that makes up division of labour.
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Amazing facts in Commerce
With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing
Check it out here
The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung
North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola
Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019
Notable points in Commerce
The theory of international trade is guided by the principle of comparative cost. This principle was propounded by David Richards.
The principle of comparative cost states that a country should specialize in the production of goods and services in which they have a greater comparative advantage or the least comparative disadvantage.
Below is an instance on the principle of comparative cost.
Now, let us assume we have two countries producing and exporting rice and beans respectively.
From the above instance, it can also be said that country B is at a disadvantage with regards to the production of rice and beans. Infact, it has a bigger comparative disadvantage with regards to beans production.
The point to note here is this: A country utilizing the principle of comparative cost will always produce quality goods and services at a cheaper cost.
No single country manufactures all the goods and services in our world. This implies that every country of the world relies on certain goods and services imported (or brought in) from other countries.
Foreign trade is defined as the exchange of goods, services and capital between two or more countries.
Foreign trade is also termed as international trade.
Division of labour can be defined as the act of splitting job process into a number of different processes such that each process is done by a different person or group of persons.
Through the process of division of labour, one worker may constantly perform a specific aspect of the job and as a result, may become specialized in that area.
The result of specialization in the different department of a job will imply the production of goods with better quality.
Forms of division of labour relates the various ways through which division of labour may be carried out.
Take for instance, within a country, one state may choose to specialize in the production of a cars while another specializes in a different area, let's say agriculture.
Below are the forms of division of labour
Complex division of labour
Occupational division of labour
Geographical division of labour
Balance of Trade can be defined as the total value of goods imported and exported by a country during a specific period; usually yearly or annually.
Balance of trade can be either positive, negative or zero
A positive balance of trade implies that a country exports more goods than its imports. China as a country is likely to have a positive balance of trade since it exports a variety of goods to other countries.
A negative balance of trade is often considered as an unfavorable balance of trade since the country's importation exceeds its exportation. Nigeria (as at 2018) is likely to have a negative balance of trade.
A zero balance of trade is reached when imports equal exports.
Please read on balance of trade and balance of payments here.