Meaning (Forms) and Importance of Trade (JSS 2)

Last Updated on July 15, 2020 by Alabi M. S.

 

BUSINESS STUDIES 

THIRD TERM  

JSS 2

THEME: COMMERCE – THE HEART OF BUSINESS 

TOPIC – TRADE 

LEARNING AREA

1. Meaning of Trade

2. Forms of Trade

3. Importance of Trade

4. Aids to Trade

5. The Roles of Custom and Excise in Foreign Trade

 

PERFORMANCE OBJECTIVES 

By the end of the lesson, the students should have attained the following objectives (cognitive, affective and psychomotor) and should be able to –

1. explain the meaning of trade.

2. list the importance of trade.

3. describe forms of trade.

4. explain the services that make trade easy.

5. explain the role of customs and excise in foreign trade.

 

ENTRY BEHAVIOUR

Buying and selling

 

INSTRUCTIONAL MATERIALS

The teacher will teach the lesson with the aid of:

1. Charts on aids to trade.

2. Pictures on trade.

3. Newspaper cuttings of the activities of Customs and Excise board.

 

 

METHOD OF TEACHING – Choose a suitable and appropriate methods for the lessons.

Note – Irrespective of choosing methods of teaching, always introduce an activities that will arouse pupil’s interest or lead them to the lessons. 

 

REFERENCE MATERIALS

1. Scheme of Work

2. 9 – Years Basic Education Curriculum

3. Course Book

4. All Relevant Material

5. Online Information

 

CONTENT OF THE LESSON  

MEANING OF TRADE

Trade is the act of buying and selling of goods and services between people or countries both in local and international markets.

The distribution and exchange of goods and services are possible through buying and selling.

 

 

IMPORTANCE OF TRADE

1. It complete the process of production.

2. It brings different buyers and sellers together.

3. It generates foreign currency.

4. It increases the value of local currency.

5. It eases the exchange of goods and services.

6. It satisfies consumer’s want.

 

FORMS OF TRADE 

There are two (2) of trade – home and foreign trade.

HOME TRADE 

Home trade is also known as domestic trade.

Domestic trade is the act of buying and selling of goods and services between people or states within a country or local markets.

For example, a trade between Lagos, Oyo, Kaduna, Imo, etc.

 

FOREIGN TRADE

Foreign trade is also known as international trade.

International trade is the act of buying and selling of goods and services between people or countries at international markets.

For example, a trade between Nigeria and other countries.

 

 

CLASSIFICATION OF FOREIGN TRADE 

Foreign trade can be classified into import, export and enter port trade.

1. Import Trade 

Import trade is the act of buying goods from other countries. For example, Nigeria buying cars, mobile phone, computers, etc. from other countries.

 

2. Export Trade 

Export trade is  the act of selling goods to other countries. For example, Nigeria selling crude oil, cocoa, etc. to other countries.

 

3. Enter Port 

Enter port is the act re – exporting good made in one country and sell to other countries without adding values. For example, Nigeria buying cars from one country and sell them to other countries.

 

AIDS TO TRADE 

Aids to trade are the different services that made trade essay.

BANKING

Banking is the act of saving money and other valuable materials for future use or purpose. Banking involves in many services such savings, credit loan facilities, buying and selling shares, facilitate capital projects, etc.

 

INSURANCE 

Insurance is the act of taking risks for different business based on their terms and conditions.

 

 

ADVERTISING 

Advertising is the act of bringing both the consumers and producers together. It is about creating awareness about goods and services.

 

COMMUNICATION 

Communication is very important in the act of buying and selling goods and services. It provides information about a product to all potential buyers and sellers.

This involves writing letters, mail, making and receiving calls.

 

TRANSPORTATION 

Transportation is the act of people, goods and services to where are they are in high demand. Transportation makes goods and services available to the final consumers.

 

WAREHOUSING 

Warehousing is the act of keeping goods safe for future use.

 

ROLE OF CUSTOM AND EXCISE IN FOREIGN TRADE 

Custom and Excise are agencies in all countries charged with the responsibilities of import and export services. In Nigeria, Federal Government is in charge of custom and excise in the country.

The roles of custom and excise include:

1. Regulating importation and exportation of goods and services.

2. Monitoring goods coming into the country.

3. Preventing the illegal or smuggling goods.

4. Generating income for the government.

5. Preventing importation of banned goods.

6. Protecting home made goods and services.

 

 

PRESENTATION

To deliver the lesson, the teacher adopts the following steps:

1. To introduce the lesson, the teacher revises the previous lesson. Based on this, he/she asks the students some questions;

2. Explains trade as a commercial activity.

Student’s Activities – Explain what is trade as a commercial activity.

3. Illustrates forms of trade using chart.

Student’s Activities – Draw on the board and in their books a chart showing the forms of trade.

4. Leads discussion on aids to trade.

Student’s Activities – Participate in the discussion.

5. Asks questions relating to aids to trade.

Student’s Activities – Questions and Answers

6. Explains the role of the customs and excise in foreign trade.

Student’s Activities – Tour area office of custom and excise in their environment.

 

CONCLUSION

To conclude the lesson for the week, the teacher revises the entire lesson and links it to the following week’s lesson.

 

LESSON EVALUATION 

Students to:

1. Explain the terms trade.

2. List three importance of trade.

3. Identify the two forms of trade.

4. state two roles of customs and excise.