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.
Division of labor is defined as 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.
From the above definition, a person or group of persons carry out only a part of the job in division of labor.
Please read an introduction to division of labor here.
Below are the advantages of division of labor:
Recall that a person, or group of persons carry out only a part of the job in division of labor. As we all know, practice makes perfect; and thus, preforming the same repetitive task over and over again can bring about specialization in that specific area.
Specialization refers to the process of concentrating on and becoming expert in a particular subject or skill. It is an obvious advantage of division of labor; which is oftentimes termed as 'specialization of labour'.
With regards to specialization,, the number of years one has spent in carrying out a specific task (within a job) can massively influence one's resume.
It enhances the rendering of quality service
This is an abvious advantage of division of labor since different personnels are involved at different stages of service rendering. Importantly, these personnels are quite good, or even professionals in their area of speciality, thus contributing their very best in the business enterprise. Consider the instance below:
In a secondary school, division of labor is quite visible since each tutor is responsible for teaching one (or two) specific subjects. For instance, a trained biology teacher teaches biology, while another teacher trained in mathematics tutors mathematics. In this way, they specifically teach the subjects they are trained at, thus increasing the overall quality of educational services rendered.
Please read on the factors necessary for division of labor here.
Division of labor saves time
Division of labor ensures that a worker performs only a part of the job. In fact, he doesn't just perform a part of the job, he or she is likely to be trained to perform that part of the job, thus making that aspect of the job much efficient, reliable and faster.
As an instance, a gateman is expected to be always stationed at his position (that is, the gate), and not somewhere else, let's say the kitchen. This will indeed aid him to quickly discharge his duties as the gateman (which are typically restricted around the gate region) since he's always here. In this way, division of labor saves time since the individual is always at the right place, and at the right time.
Please read on the forms of division of labor here.
Division of labor fosters collaboration among workers
Various personnels are always involved wherever division of labor is practiced. Based on this fact, these personnels are expected to work in collaboration in order to maximize the production of goods and rendered services.
Using the secondary academic institution as an instance, in order to properly and effectively pass knowledge to the students, the teachers in a secondary school are expected to cooperate with one another (even though they teach different subjects). We see such cooperation during student assembly, exam invigilation, and so on. This is what unity in division of labor entails.
Further more, the teaching staff of a school are also expected to collaborate with the non teaching staff (e.g cleaners, security personnels, accountants, an so on) in order to maintain cleanliness, orderliness and a secured environment.
Please read on orderliness in civic education here.
Leads to the presence of more goods in the market, and an eventual decrease in price
Recall that each personnel in division of labor performs a dedicated function. As a result, goods will be produced at a faster rate, resulting into a corresponding increase in production. In this regards, more goods will be made available to the market, and will likely sell at a cheaper price (with regards to the principles of demand and supply).
Please read on supply and law of supply here.
In addition to this, quality goods will also flood the market since dedicated workers are involved at different stages of production.
Economy in the use of tools
Division of labor results into the judicious and prudent use of work tools. This is true because one person is often provided with the specific set of tools he needs for his portion of the job, while another with a different set of tool.
You can read on agricultural tools and their uses here.
Since each worker is expected to be very familiar with the use of their respective tools, then, such tool is expected to be efficiently used, maintained and preserved. This will indeed save cost in the long run.
Increased production of quality goods
Division of labor is considered a major reason why we've got quality goods in the market, alongside quality in rendered service. This is so because each part of the production process is carried out by suitably qualified personnels.
Take for instance, during the production of phones and computers, the memory chips are often manufactured by persons (or even industries) dedicated to this field, while the external design of the phone may be made by another professional. Through this division of functions in the production process, quality phones with very good processing unit, RAM memory, camera, external.design, and so on are produced.
Youbcan read on the functions and parts of a computer hardware here.
Division of labor has contributed greatly towards the creation of employment opportunities. This is true because various personnels are employed in different areas or departments of the job.
Using a school as a point of reference, more than 20 staff are expected to be gainfully employed within the secondary academic system. This will include the respective subject teachers, cleaners, gateman, security personnels, and so on. These staff are expected to perform their respective duties via division of labor.
Please read on the responsibilities, duties and obligations of a citizen here.
Recall that division of labor translates into more goods in the market, alongside an increase in employment opportunities.
The presence of more goods (and services) in the market will result into an increased competition (for such goods and services). In fact, for us to have more quality products in the market, companies will have to compete with regards to employing the most qualified personnels, thus bringing about an increase in employment opportunity.
You can read on advertising and types of advertising here.
An instance of the above explanation is seen when football clubs compete for the best players in a particular department of the game, and will even pay outrageous amount to secure their services. This form of competion is a function of division of labor since the football team critically need the best service delivery in that department.
Please read on the disadvantages of division of labor here.
It ensures dexterity
Dexterity refers to one's ability to perform a difficult action quickly and skilfully with the hands. This can be achieved through division of labor since a person often perform repeated actions or operations over and over again, thus making them extremely good, or near perfect within the scope of such operation.
Dexterity in division of labor is corroborated (or supported) through the old-age dictum: 'practice makes perfect'.
It maximizes the use of machines and technology
Machines and technology are created to solve problems. However, the way and manner through which they are utilized will determine the rate and efficiency with which they carry out their functions.
With regards to a large office or industry, division of labor ensures that workers utilize these machines and technologies, maximizing their efficiency during production.
You can read the concept of a large office here.
Division of labor also ensures that the right man works in the right place, and with the right machine, thus subsequently maximizing the efficiency of production. This will further promote the invention of new machines and technologies.
Read on the definitions of technology and their explanations here.
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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.