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.
Recall that division of labor refers to the act of splitting job processes into different stages (or departments) such that each process is carried our by a different person, or group of persons. You can think of it as unity of purpose and interdependence on one another towards accomplishing a task, service, or production process.
Division of labor has long been a principle embraced by industries to enhance productivity and efficiency. While it brings several advantages, it is crucial for students and professionals alike to understand its inherent disadvantages.
Please read the introduction to division of labor here.
This article explores some of the significant drawbacks that accompany the division of labor. They are explained below:
A disadvantage of division of labor is the increased interdependence among workers, which can create vulnerability within the production process.
When tasks are heavily divided, the entire workflow becomes dependent on the performance of individual segments. As a result, a delay or error in one area can ripple through the entire production system, leading to lost time and diminished quality of output.
One department in division of labor can act as a bottle neck, thus slowing the entire production process.
For instance, if a specific machine malfunctions or an employee fails to complete a task, this can halt production entirely, negatively impacting delivery schedules and customer satisfaction. This reliance on consistency and coordination makes companies more vulnerable to disruptions, whether from machinery failures, human errors, ill health of humans, or external factors like supply chain issues.
Please read on the factors that promote cooperation here.
One of the most pronounced disadvantages of the division of labor is the potential loss of skill variety among workers. When tasks are segmented and specialized, employees often find themselves performing repetitive duties, leading to skill stagnation. For instance, consider workers in an assembly line who are assigned to specific tasks, such as attaching parts or packaging products. Over time, these workers may become highly specialized in narrow tasks but lose the broader skill set they might have developed through varied responsibilities.
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This specialization that dividion of labor brings can potentially lead to decreased job satisfaction. This is a cumulative result of monotony on a job (that is, doing the same thing over and over again). Infact, research suggests that monotony can diminish motivation and engagement.
One of the consequences of the above explanation (monotony) is the fact that workers who perform limited tasks may feel alienated from the overall production process, thus reducing their sense of accomplishment and pride in their work.
Consequently, organizations may face higher turnover rates as employees seek more fulfilling roles or environments that offer diverse challenges.
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Division of labor can adversely affect team dynamics and communication especially in environments where roles are incredibly specialized. Within such specialized environments, employees may become more isolated in their functions. This isolation can hinder collaboration and information sharing, which are critical for problem-solving and innovation.
When team members work strictly within their confines (or rigid silos), they may lack a comprehensive understanding of the project or product as a whole. Such short sightedness can stifle creativity and prevent teams from leveraging the diverse perspectives that come from cross-functional collaboration. Ultimately, companies may struggle with innovation and adaptability, crucial traits in ever-evolving industries.
Please read on the types of cooperation here.
The division of labor can also lead to a diminished sense of autonomy among workers. As procedures and tasks become more standardized and dictated by management, employees may feel less empowered to express their ideas or take initiative. This lack of autonomy can demoralize staff, especially those who thrive in dynamic environments where they can apply their diverse skills and experiences.
Please read on the concept of business structure here.
Furthermore, as employees increasingly receive narrowly defined tasks, difficulties may arise when a project requires input from various functions. The inability to adapt or deviate from assigned roles may lead to missed opportunities for improvement or efficiency gains. Thus, a division of labor designed for efficiency can paradoxically create bureaucratic drudgery, stymying both personal growth and organizational advancement.
Please read on the advantages of division of labor here.
Note
While the division of labor offers clear benefits in terms of efficiency and productivity, it is essential to weigh these advantages against the substantial disadvantages. Increased interdependence, loss of skill variety, monotony on the job, negative impacts on teamwork, and diminished autonomy are all factors that can affect both employees and organizations.
For students studying this concept, understanding these drawbacks is vital to developing a nuanced perspective on workplace structures and their impact on human resources and corporate culture. As industries evolve, a thoughtful approach to the division of labor may be necessary to cultivate environments where efficiency and employee satisfaction coexist harmoniously.
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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.