Lesson Notes By Weeks and Term - Junior Secondary School 2

FIRST TERM

SUBJECT: BUSINESS STUDIES 

CLASS: JSS 2

REFERENCES:

• Business Studies for JSS Bk 2 By O.A. Lawal et’al Publisher: Longman
• WABP Business Studies for JSS Bk 2 By Egba T. Ehiametalor etal Publisher WABP
• Business Studies Work Book for JSS Basic 8 By S. Okioyemi   
• Macmillan JSS 2 Business Studies By Awoyokun A.A et’al.

WEEK FOUR

TOPIC: TRADE

CONTENT

• Meaning 
• Importance
• Forms of Trade

DEFINITION OF TRADE

Trade is defined as the exchange of goods and services between buyers and sellers at an agreed price. It is the buying and selling of goods and services at an agreed price. 

When goods are handed over to the buyers and there is exchange of ownership, the process of handing over the goods is called delivery. Trade is broadly classified into home trade and foreign trade. However buying and selling takes place very often in a market.

IMPORTANCE OF TRADE

1. It makes varieties of goods and services available.
2. It improves standard of living of people.
3. It encourages friendship among countries of the world.
4. It leads to employment opportunities.
5. It gives value to national currency.
6. It brings buyers and sellers together.

FORMS OF TRADE

1. Home Trade
2. Foreign trade

HOME TRADE

Home trade is the buying and selling of goods and services within the boundary of a country. For example, a yam trader at Onitsha selling to her customer in Lagos.

Home trade can also be called domestic trade or internal trade or national trade. It can be divided into two:

1. Wholesale trade
2. Retail trade

WHOLESALE TRADE

Wholesale trade should not be confused with a wholesaler. A wholesaler is the trader who buys goods and services in large quantities from the producer to sell in small quantities to the retailer. Wholesale trade is the process or system of buying in large quantities from the producer and selling in small quantities to the retailer. However a retailer buys in small quantities to sell to the public.

RETAIL TRADE

A retailer should not be confused with retail trade. A retailer is a trader who buys goods in small quantities from the wholesaler and sells in units to the consumer. However, retail trade is the process of buying in small quantity from the wholesaler and selling in bits or units to consumers.

EVALUATION 

1. What are the differences between wholesalers and retailers?
2.  What is the importance of retailers in the chain of distribution?
3. Define trade.

FOREIGN TRADE

Foreign trade is the selling of goods and services between one country and another. Example of this trade could be between Nigeria and Germany. It can also be called external trade or international trade and it is divided into two types namely: 

i     Import trade: This is the process of buying from other countries. Examples includes importation of cars, rice etc. A person or company engaging in this type of trade is called an Importer.

1. Export trade: This is the process of selling to other countries, that is exporting locally produced goods like cocoa, groundnuts etc. The person or company engaging in this type of trade is called an exporter.

iii  Entrepot trade: This is the re-exporting of goods already brought into a country from another country without further processing or transformation For example a company buying goods from a foreign country and selling it to another foreign country..

DIVISION OF TRADE

Trade

    Home Trade                            Foreign Trade

Wholesale Trade    Retail Trade            Import Trade        Export Trade   Entrepot

EVALUATION

1. What is foreign trade?
2. Write short notes on import and export trade.

READING ASSIGNMENT 

Business studies for junior secondary schools revised edition. O.A. Lawal, F.O.C. Ezeah. Pages 15                                           

WEEKEND ASSIGNMENT

1. ------- is the act of buying and selling of goods and services. (a) market (b) trade (c) office               (d) correspondence.
2. The act of buying and selling of goods and services between two or more countries is ----

(a) home trade (b) foreign trade (c) entrepot trade (d) local trade.

1. When goods are bought by a retailer from Abuja and sold at Lagos, it is called

(a) international trade (b) home trade (c) mixed trade (d) entrepot trade.

1. When goods are bought in a foreign country and sold in another country, it is called ------ (a) wholesale trade (b) home trade (c) foreign trade (d) entrepot trade.
2. When goods are bought by a retailer and later sold to consumers ------- trade has taken place. (a) foreign (b) home (c) wholesale (d) retail.

THEORY

1. Define trade.
2. Differentiate between foreign and home trade.

GENERAL EVALUATION

1. Define an office.
2. Who is a receptionist?
3. Mention three sales documents.
4. Mention four documents handled by a receptionist.
5. Define a mail.