Alfred Ajibola
- Wed, 13th March, 2019 @ 5:01 PM
Topics in Commerce
Advantages of division of labor Disadvantages of division of labor Types of specialization Specialization and Exchange Historical background of commerce in Nigeria Disadvantages of barter system Contract 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 explainedAcademic Questions in Commerce
In commerce, the concept of paying in advanced is termed _____.
A. Advanced payment
B. Up payment
C. Forward payment
D. Prepayment
E. Uphill payment
F. Adpayment
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.
A. True
B. False
Which of the following is not a branch of marketing?
A. Merchandising
B. Promotions
C. Forex
D. Search Media Optimization
E. Social Media Optimization
F. Copywriting
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.
First, let's begin by understanding the words 'commodity' and 'market' before we juxtapose both terms.
A commodity is defined as any product (or tangible good) with market value; and such product can be bought or sold with money. The term 'tangible good' implies that such product or goods are physical in nature; that is, they can be touched or felt.
For an item to be considered a commodity, it must satisfy three conditions. These are:
It must be standardized. In the case of agricultural commodities, they must be in their unprocessed state.
It must be usable upon delivery
The price of a commodity item must vary.
A market is defined as a place where the transaction of goods and services are carried out.
Please read more on the concept of market here.
From the above explanations on the terms 'commodity' and 'market', a commodity market can therefore be defined a place where people buy and sell homogenous goods in large quantities.
Homogeneous goods are products that essentially have the same physical characteristics (or qualities) as similar products from other brands.
It is noteworthy to state that foreign currencies, data and bandwidth have all been included as part of today's commodity markets. In this regard, a commodity market will always have it's own set of rules and regulations.
Generally, commodities can be put into two. These are:
Hard commodities: They include goods extracted from the earth crust via mining processes. Examples of such commodities are crude oil, gold, coal and diamond
Soft commodities: They include all products derived from agricultural activities. Examples includes chicken, wheat, fruits and grains.
You can read on production here.
Recall that commodities are traded in a commodity market. The trading pattern here can be carried out in two forms. These are via:
Importantly, MCX are known to trade hard commodities unlike the NCDEX which specializes in trading soft commodities.
Note: Commodity markets do not set prices of traded commodities. Instead, it is the demand and supply of commodities that determine their prices.
Please read more on demand and law of demand here.
Recall that commodities are raw materials. When processed, they are used by everyone.
As an instance, petroleum is a commodity utilized in the production of petrol and cooking gas. In another instance, cotton is the commodity processed for making clothes. These raw materials (commodities) at one point in time interacted with the commodity exchange.
Commodity exchange prices often influence the prices of numerous goods. In fact, changes in commodity prices can affect an entire segments of an economy thus bringing the government into play. For instance, government may offer subsidies for a product like PMS (petrol) or change in tax rates.
Please read more on balance of trade and balance of payments here.
Have you ever wondered why most buyers and sellers trade commodities on the futures markets? This is so because many traditional commodities like grains and wheat bear the risk of a negative price change when their products are finally ready for the market. Based on this uncertainty, futures contract come into play in the sense that the buyer buys the right to receive a specific quantity of the commodity at a specific period of time.
The above process will offer price stability to commodity producers and commodity users respectively.
Kindly share this article via the links below:
Please click here to contact Alfred if you require any of the following services:
If you need a standard website at an affordable price.
Online training on the academic subjects: biology, chemistry and basic science.
If you require an advanced smart school management system (web application) for your school.
Click here to read on Len Academy Smart School Software.
Please click here to follow Len Academy on Google News.
Amazing facts in Commerce
According to research, the problem isn't the amount of food produced; the actual problem is the distribution of these foods. In this regard, we actually produce enough food to feed everyone on earth, but their distribution remains an underlying problem
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.