Pen-Write E-Library

SCHEME OF WORK
WEEK TOPIC
THEME 1: TRADE AND BUSINESS ORGANIZATION
1. Revision of last term work.
2. (e) Large scale retailer e.g super market, mail order, (f) Modern trend in retailing( brand, self-service) etc
3. HOME TRADE: (G) main characteristics of large scale and small scale trade (h) advantages and disadvantages of large scale retailers
4. HOME TRADE Reasons why retail business may fail? , Wholesale trade ,Channel of distribution
5. HOME TRADEWholesale trade(cont’d) , Survival process, Functions of agents ,Types of warehouses and
6. FOREIGN TRADE: Meaning of foreign trade , Types of foreign trade: i. Bi-lateral foreign trade ii. Multilateral foreign trade , Advantages and disadvantages of foreign trade
7. FOREIGN TRADE: I. Division of foreign trade ii. Barriers to foreign trade
8. INTERNATIONAL TRADE: C. Procedure for international trade , D. Balance of trade and balance of payment.
9. FOREIGN TRADE (INTERNATIONAL TRADE: Tariffs and reasons for the imposition of tariffs, Tools for trade restriction and export promotion.
10. FOREIN TRADE(INTERNATIONAL TRADE: 1. Functions of customs and excise authority ii. Functions of Nigeria Export Promotion Council iii. Functions Nigerian Airports Authority and iv. The Nigeria Ports Authority.
11. Revision.

TOPIC: HOME TRADE
CONTENT: 1. Large scale retailer e.g. super market, mail order.
2. Modern trend in retailing (brand, self-service) etc.
What is home trade? Home trade is the act of buying and selling of goods and services.
SUB-TOPIC 1: LARGE SCALE RETAILING:
SUPER MARKET:These are multiple chain shops with self service facilities. A super market is a very large shop with a self-service facility. A supermarket may occupy a large surface area of about 200 meters. The large area enable the customers to move freely in order to make selection of goods needed.
CHARACTERISTICS OF A SUPERMARKET
1. They specialize mainly in household goods and food items.
2. It deals in a varieties of goods
3. Operation of self service system: Customers can move round about the shop to select what they want to purchase without any assistance
4. Goods are displayed with price tags: all the items on displayed are pre- packed and have price tags affixed on them. There is no opportunity for bargaining.
5. Located around residential areas: goods are well displayed on shelves or counters to attract the attention of customers.
6. Bulky purchase: this is the act of buying goods in large quantities and sell them to customers at a lower price
7. Provision of basket and trolleys: This is provided in order to make shooping convenient for customers
8. Large storage facilities: a super market has large storage facilities to store goods until they are needed.
9. Specializes in household goods and food items
EVALUATION
• What is home trade?
• Briefly explain supermarket
• Mention 3 characteristics of a supermarket

ADVANTAGES/MERITS OF SUPERMARKET
1. Provision of self service system
2. Provision of shopping kits to make shopping convenient for their customers
3. Encourage the impulse buying; this is to encourage the customers and to catch their attension when goods are displayed on the counter and shelves.
4. Offer varieties of goods to customers
5. Low overhead cost: only few people are employed and therefore, the total overhead cost is reduced
6. Constant availability of goods
7. Low prices
8. Goods are displayed with prices

DISADVANTAGES/DEMERITS OF SUPERMARKET
1. No credits facilities are granted to their customers because it may reduce the sales of goods
2. Lack of personal relationship: there is no personal contact between the customers and the attendant
3. High rate of pilferage: goods are always stolen bacuse customers are allowed to move round without being checked.
4. No room for bargaining
5. Restricted to high-populated area
6. High running cost.
EVALUATION
• List 4 merits of a supermarket
• Mention 2 disadvantages of a supermarket

MAIL ORDER
This is a type of business whereby buying and selling are done by post. Customers can transact business directly with the manufacturers. Catalogues or price lists are issued and sometimes order forms are printed in newspapers or order journals. The purchaser send his order by post and encloses money for payment.
FEATURES/CHARACTERISTICS OF MAIL ORDER BUSINESS
1. Production of goods according to customers specification
2. Mode of payment is cash on delievery:This means, customers are to pay for goods before the goods are giving to them.
3. Direct contact with the producer: The manufacturer deals directly with the customers thereby by-passing the middlemen.
4. Usage of catalogues
5. Transaction takes place by post
ADVANTAGES/MERITS OF MAIL ORDER BUSINESS
1. Cost saving :operating cost is absent such as renting a shop and so on
2. Few staff are employed since transaction takes place by post.
3. Catalogues are useful for advertisement: advertising is the creation of awareness of making goods produced to the general public
4. Displaying of goods are absent
5. No problems of bad debt
6. Bulk purchases
7. Local and rural supply
DISADVANTAGES/DEMERITS OF MAIL ORDER BUSINESS
1. Absence of personal contact
2. Goods can be lost in transit while the money paid for the goods will not be refunded
3. Late delivery of goods due to transportation problem
4. No opportunity to inspect the goods the customers want to buy
5. Cost of advertising is very high
6. Inefficiency in postal system and high cost of postage
7. Pictures in the catalogues may be misleading
8. Much time is wasted by waiting for the goods to arrive
MODERN TREND IN RETAILING
Modern trend in retailing is the rapid growth in economic and technological development.
SELF-SERVICE: This is a system where the customers move round the stores to select whatever goods they want to buy from the shelves and pay to the cashier with or without any assistance of the attendants. Appropriate packaging and display enhances self –service.
FACILITIES TO BE PUT IN PLACE
1. Cashier with automatic cash register
2. Trolleys and basket
3. Spacious floor
4. Security should be beefed up
5. Provision of spaces for packaging of goods
6. Packaging of goods with price tags
7. Attractive shelves.
FEATURES/TRAITS/CHARACTERISTICS OF SELT-SERVICE
1. Provision of shelves and counters
2. Display of goods
3. Provision of trolley and basket
4. Provision of space for movement
5. Price tags

ADVANTAGES/MERITS OF SELF-SERVICE SYSTEM
1. Increase in sales: beautifully displayed goods result in impulse buying that is ,customers tend to buy what they do not budget for and this act increase overall sales.
2. Employment of few sales clerks: since customers are allowed to pick what they want to buy, fewer sales attendant are needed and this reduce the overhead cost.
3. Time saving: self –service saves time that would have been used in bargaining (negotiation)
4. Convenient shopping :this is possible because goods are well displayed, trolleys and basket are made available for customers to carry whatever they have bought.
5. No interference
6. It attracts customers
DISADVANTAGES OF SELF-SERVICE
1. Possibility of pilfering: it encourages stealing since customers will not be supervised while buying goods and this may lead to shortage
2. Possibility of over spending: customers may be tempted to buy more than what they have budgeted for.
3. Lack of proper inspection of goods bought.
4. High running cost: the cost of renting a large accommodation will definitely increase overhead cost
5. Goods may be damaged: handling of goods by the customers may damaged the goods.
BRANDING
Branding is the act of giving names or mark to a product in accordance with the trade mark Act in order to distinguish it from similar products manufactured by other producer.
ADVANTAGES OF BRANDING
1. Uniform price
2. Easy recognition
3. Ensures high quality
4. Standardization of products:
5. Stimulation of self-service
6. Prevention of product adulteration
7. Reduction in the cost of advertising
DISADVANTAGES OF BRANDING
1. High cost of advertising
2. It leads to high price
3. It can confuse customers: too much brands of goods may confuse customers.
4. Creation of false buying : branding goods may ensure that customers purchase more than what they need.
CHARACTERISTICS OF A SMALL- SCALE RETAILING
1. Little capital: The amount of capital required for a small retail business is small.
2. Few workers are employed
3. Price is determined through bargaining.
4. Labour intensive system: under small scale retailing, more labour is used.
5. Mostly one man business: This is own by an individual.
EVALUATION:
• What is branding?
• Mention 2 advantages and disadvantages of self –service retailing
• Mention 2 merits and demerits of mail order business
• List 3 traits of a small-scale retailing
GENERAL EVALUATION:
1. ------ is the act of giving names or mark to a product in accordance with the trade mark Act order to distinguish it from similar products manufactured by other producer (a) mail order business (b) branding (c) self-service business
2. Which of the following is the characteristics of small-scale retailing? (a) labour intensive system (b) high cost of advertising (c) uniform price
3. Which of the following is the disadvantages of mail order business? (a) displayed of goods (b) restricted to high populated area (c) Late delivery of goods due to transportation.
4. ------- is a multiple chain shops with self service facilities (a) super market (b) mail order business (c) branding.
5. The rapid growth in economic and technological development is(a) modern trend in retailing (b) standardization of branding (c) price tags.
ESSAY QUESTIONS
1. What is branding?
2. Briefly explain the following
3. List 4 merits of a supermarket
4. Mention 2 disadvantages and advantages of a supermarket
5. What do you understand by mail order business? Give 2 merits and demerits of mail order business.
WEEKEND ASSIGNMENT
Read Longman New Edition for snior secondary school Commerce book one by M.O Odedokun, P.C Udokogu and C.O.N Oguji
PRE –READING ASSIGNMENT: Read about the home trade, foreign trade and wholesale trade
WEEKEND ACTIVITY
Mention five relevance of branding to Nigeria Economy.
REFERENCE TEXT
1. Longman Commerce for sss Book1 by M.O Odedokun, P.C Udokogu and C.O.N Oguji.
2. Amplified and Simplified Commerce for senior secondary school book1 by Femi Longe and TundeOlaleye.

TOPIC: HOME TRADE
CONTENT:
1. Reasons why retail business may fail?
2. Wholesale trade
3. Channel of distribution
SUB-TOPIC 1: WHY RETAIL BUSINESS FAIL?
The following are the reasons why retail business fail in Nigeria
1. Finance: Because of the generally small size, retail business do not have ample opportunities to obtain finance. Banks and other financial institutions do not often give loan to small borrowers who are also disadvantaged in accessing the capital market or stock exchange to raise funds.
2. Limited managerial and professional capacity: management and professional services are often limited to whatever the proprietors themselves can provide.
3. Simplistic and non-modern modes of operation: adequate financial and accouting records are sometimes not kept.. Also information technology ( computer terminals and networking , electronics trading etc are not often used . All these may affect the competitiveness of the business.
4. Lack of diversification: because of the small size, retailers may not be able to diversify into many areas of merchandising, which would require much money and management capability. For example, a fall in the demand for a product may easily result in business collapse.
5. Limited government attention: government attention is more focused on larger enterprises that are often regarded as too big to fail because of the wider effects that a failure would on the society.
6. Unfavorable market condition and retail business environment.
7. Aggressive competition and incursion from wholesalers, manufacturer and so on.
TYPES OF RETAIL TRADE IN NIGERIA
There are two types of retail trade in Nigeria namely: 1. large scale retailers: Large scale retailers are Department stores, supermarkets, mail order firm etc.
2. Small scale retailers are market stall owner, kiosk, hawkers etc.

EVALUATION
1. Give three reasons why retail business fail in Nigeria.
2. List and explain types of retail trade.
SUB-TOPIC 2: WHOLESALE TRADE
MEANING OF WHOLE SALE: A wholesaler is a trader who buys goods in bulk or in large quantities from the producer/manufacturer.
FEATURES OF WHOLESALE TRADE
1. Bulk breaking
2. Sells goods in large quantity and sells in small quantity to retailer.
3. They are the middlemen between the producer and retailers.
FUNCTIONS OF WHOLESALERS TO THE MANUFACTURER/PRODUCER.
1. Breaking of bulk: they buy in bulk and sell in small quantities to the retailers.
2. Warehousing function: The wholesalers are able to purchase very large quantities from the producers, which they store in the warehouse until they are required by the retailers.
3. Transport and delivery service: they receive large quantities from the producers make them available to countless retailers through their own network of distribution centres.
4. Risk bearing : the wholesaler can anticipate business risk in distribution and take appropriate measures to reduce their impact by taking the necessary insurance cover.
5. Branding, packaging and labeling : The wholesalers may prepare commodity for sale by packaging , branding and grading.
6. Advertising function: they do most of the work of finding ready-made market for the products. This is done through advertising and promotion.
7. Price stability
8. Financing the producers.
FUNCTIONS OF WHOLESALERS TO RETAILERS
1. Wholesalers sometimes pre-packed, brand and grade goods for retailers
2. They stimulate demand for goods through sales promotion.
3. They often offer credits facilities to the retailers.
4. They provide retailers with technical information and advice on new products.
5. For the convenience of retailers, wholesalers carry inventory of assorted goods procured from different manufacturer.bvv
ARGUMENTS FOR AND AGAINST THE ELIMINATION OF WHOLESALERS
It is believe that wholesaler are responsible for artificial scarcity and the attendant rise in price. For this reason, many people think that wholesalers should be eliminated in the distribution channel. Wholesaler are regarded as un productive. This is not strictly true since many wholesalers are as productive as manufacturers.
Bearing in mind the functions of wholesalers, it appears that they cannot be eliminated from the distribution chain without adding unnecessary burden of producers and retailers. All benefits which producers and retailers derive from wholesalers would be lost if wholesalers are eliminated from the chain.
EVALUATION
1. Give three features of wholesale business.
2. List two advantages of wholesalers to the producer and wholesalers to the retailers.
3. (a) Who is a wholesaler? (b) Elucidate the functions of a wholesaler.

TOPIC: HOME TRADE
CONTENT
1. Home Trade (cont’d)Survival process
2. Functions of agents
3. Types of warehouses and
i. Necessary document
SUB-TOPIC 1: MEANING OF HOME TRADE:
Home trade is the act of buying and selling of goods and services within the country.
ADVANTAGES OF HOME TRADE
1. No language barrier since buyers ans sellers are close to each other
2. There is no foreign exchange problem. The distance over which goods are to move are very short compare to foreign trade.
3. There is no difference in the weights and measures used by both the buyers and the sellers since both group are subject to the same laws.
4. The political and legal systems are too less heterogeneous than in the case of foreign trade.
SURVIVAL PROCESS/SURVIVAL OF MIDDLEMEN
All the functions performed by the middlemen are the main reasons why they shou;d continue to act as intermediaries in the channel of distribution.

SUB-TOPIC 2: FUNCTIONS OF AGENTS
An agent is a person employed for the purpose of establishing a contractual relationship between the principal(who is the person employing the agent) and someone else. In commerce, an agent is the person employed for the purpose of selling goods on behave of the principal. The person employing the agent is either the producer, foreign supplier, or someone larger scale domestic wholesale trader.
TYPES OF AGENT/AGENT MIDDLEMEN
1. Brokers: are agents employed to bring into contact intending sellers and buyers. Brokers are never in possession of any goods and do not sell goods in their own name.They do not have authority to fix prices. They do not contract to work on a continue basis with any principal. They can act for several principal at the same time. They negotiate the goods with the buyer and inform the seller about the bargaining.
2. Factors or manufacturers’ agents: they are commercial agents who have authority to sell goods and who keep custody of goods until the goods are sold. They sell goods under own name. They are independent because they are not employees of any manufacturer. They do not control pricing policy. They have a continue relationship with their principals.
3. Selling agents: are agents performing the complete range of marketing functions for manufacturers. They perform the fullness and widest range of marketing functions for the manufacturers. They render the marketing departments of manufacturer more or less redundant and superfluous.
4. Del credere agents: these are agents employed to sell goods on the understanding that they would take full responsibility for any default on credit sales. They undertake that buyer would pay and if they are not, the agent will be liable.
5. Auctioneers: are agents whose duty is to sell goods at public auctions.
EVALUATION:
1. Who is agent?
2. Mention three types of agents and briefly explain them.
SUB-TOPIC 3:TYPES OF WAREHOUSES
Meaning of warehousing: This is concerned with all activities that help in storing goods until they are needed/demanded in order to ensure uninterrupted and regular supply.
FACTORS TO BE CONSIDERED IN SITING A WAREHOUSE
1. Total operating cost
2. Proximity to the factory
3. Means of transportation
4. Availability of basic social amenities
5. Cost of rentage or construction
6. Nearness to the consumers
7. Nature of the product
8. Distribution centre
IMPORTANCE OF WAREHOUSING
1. Provision of storage facilities: it helps to store goods safely until they are needed. It allows goods to be stored in anticipation of demand.
2. Ensuring price stability: The development of warehousing has helped to reduce fluctuations in price.
3. Provision of employment: it provides job opportunity for different people such as security personnel, store attendants, clerks and driver
4. Source of revenue: government and individual can generate from warehouse. It can be rented out to another users.
5. Provision of security for goods: it provides protection and security for goods.
6. Makes seasonal goods available
7. Facilitates prepackaging
8. Checking of smuggling
9. Keeping goods ahead of demand
TYPES OF WAREHOUSE
1. State warehouse: this is government owned warehouse where seized goods are kept until they are needed/sold. It is a store where smullged goods seized by the customs authorities are kept.
FEATURES OF STATE WAREHOUSE
I. The government owns it
II. Smuggle or contraband goods are kept in it
III. Goods kept in this warehouse are auctioned to the member of the general public
2. Manufacture warehouse: this is the warehouse owned and equipped by the producer at the factory site or depot in order to store his products until they are sold. It enables the producer to produce ahead of demand.
FEATURES OF MANUFACTURER WAREHOUSE
I. The producer owns it
II. It is located at the factory/depot
III. It is designed and equipped by the producer

3. Wholesale warehouse: this is owned and managed by the wholesaler for storing his wide range of purchased from various producers.
FEATURES OF WHOLESALE WAREHOUSE
I. It is owned and managed by the wholesaler
II. It is constructed tosuit his line of businee
III. It is located near sales centres
4. Bonded warehouse:this is located beside the port and approved by the customs for the temporary storage of dutiable goods on which duties have not been paid. Goods imported into the country are kept until duty are paid on them. It is under the supervision of custom authority..
FEATURES OF BONDED WAREHOUSE
1. It is under the control of custom authority
2. Goods kept there are not removable until duties are paid
3. They are located at the port
4. Duties have been paid on goods kept there
5. The goods store there are referred to as bonded goods
6. A warrant will be issued to release the goods
USES OF BONDED WAREHOUSE IN INTERNATIONAL TRADE
1. It encourage international trade
2. It ensures effective check on goods
3. It ensures sales of goods
4. Facilitate branding and packaging
5. It allows adequate time for payment of duty
6. Proper calculation of goods and recorded of duties
5. Public warehouse: this is owned and managed by the individual or firms who do not make use of their warehouse but rent it out to others for keeping their goods.
FEATURES OF PUBLIC WAREHOUSE
1. It is owned by individual
2. It located near sea port or airport
3. It can be rented out to others
EVALUATION
1. List five types of warehouse
2. State 2 features of each of the warehouse mention in one above
3. Name two factors to be considered while sitting a warehouse.
4. What is warehouse?
TERMINOLOGIES
1. Customs drawback: this mean, returning /refunding duty paid on re-exported goods. When duty has been paid on goods that are later to be re-exported
2. Import duties: these are taxes imposed on goods imported into the country
3. Delivery order: this a document issued by the owner of goods stored in a warehouse entitling the person whose name appears on it to collect the goods specified.
4. Dock warrant: is a document issued by the custom authority to person who deposit goods with them. It is issued when duty have been paid and also a document of title
5. Excise duty: these are taxes imposed on home produced goods. It is imposed to raise revenue or to check the consumption of certain commodities.
DOCUMENT S USED IN HOME TRADE
1. Trade journal: a trade journal is a booklets that contains articles or write-ups as well as advertisements in respect of some trade. Thus, it provide new information and products for potential buyers on various items. It also keeps the existing customers informed of new development in the trade.
2. Letter of enquiry and request for price quotation: this is the letter that simply aske the seller to supply more information about the goods to augment the knowledge that buyer has acquired from the trade journal or other sources.At the same time, the letter may request for price quotation.
3. Response to the letter: price quotation and cataloque or price list: a catalogue is simply the lists of goods that a seller deals in. Usually, the catalogue contains the photpgraphs or illustrations and descriptions of goods as to the size, colour and other measures or indications of quantity and quality.
4. Purchase order:this is the process of completing and submitting an orderform prescribed by the seller, sending own order form or simply writing to that effect
5. Reference letter
6. Pro forma invoice
7. Invoice
8. Advice note
EVALUATION
1. What is warehousing?
2. Name five documents used in home trade
3. List three merits of bonded warehouse in international trade
4. Name three features of manufacturer warehouse in Nigeria
5. Name two types of warehouse.
GENERAL EVALUATION
1. Which of the following is not a small retail outlet? (a) hawing (b) stall holding (c) supermarket (d) mobile shop (e) market trading
2. Possible reasons why small retail businesses fail include (a)lack of access to finance (b) limited managerial and professional capacity of the proprietors (c) inadequate diversity of the activities (d) all of the above (e) none of the above
3. Which of the following is not the function of the producer? (a) breaking the bulk (b) production of the goods (c) financing the wholesaler (d) production of technical information to the wholesaler (e) advertising
4. Modern trend in retailing include (a) mail order (b) wholesale (c)use of vending machine (d) a and b (e) a and c
5. Unlike a departmental store, a supermarket --------(a) has several shops under the same roof (b) operate on a self-service basis (c)specializes mainly on a households and food items (d) a and b (e) b and c
ESSAY QUESTIONS:
1. Explain the term branding
2. Outline and discuss the function of retailer
3. What factors would you consider before setting a retail trade?
4. What are the advantages and disadvantages of branding?
5. Name two functions of an agent
WEEKEND ASSIGNMENT
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udojipage 37
PRE-READING ASSIGNMENT: Read about the problems of international trade
WEEKEND ACTIVITY: Give five distinctions between home and foreign trade.
REFERENCE TEXT:
1. Longman commerce for senior secondary schools book 1 by M.O Odedokun, P.C. Udokogu, C.O.N.Oguji
2. Round-up Economics for senior secondary schools book1 byA.BFalodun, P.N Omogiafo and L.C Ezeaku.

TOPIC: FOREIGN TRADE
CONTENT:
i. Meaning of foreign trade
ii. Types of foreign trade: i. Bi-lateral foreign trade ii. Multilateral foreign trade
iii. Advantages and disadvantages of foreign trade

MEANING OF FOREIGN TRADE: foreign trade which is also called international trade, external trade refers to buying and selling across the border of a country i.e trade between buyers and sellers at least two different countries . Foreign trade can be either export or import. Export means, selling goods or services abroad i.e the seller is resident in the country while the buyer is resident in another country. Import on the other hand refers to buying of goods or services from abroad i.e the buyer is resident in the country while the seller is resident in another country.
EVALUATION: What is international trade?
SUB-TOPIC 2: DIFFERNCE BETWEEN HOME TRADE AND FOREIGN TRADE
DOMESTIC TRADE FOREIGN TRADE
1. It is the trade within the country Trade with other country
2. It is not subject to restriction There are restriction
3. The same currency is used to transact trade Different currency is used
4. It involve short distance It involve long distance
5. Same weight and measures are used Different measures and weight are used
6. The same language is used and ther is no language barrier Different languages are used and there language barrier
7. There is free mobility of labour There is restriction to mobility
8. Goods are moved within the same boundaries Goods are moved beyond geographical boundaries


SIMILARITIES BETWEEN FOREIGN AND DOMESTIC TRADE
1. Both are facilitated by aids to trade
2. Currencies are involved in both case
3. Both involves the act of buying and selling of goods and services
4. Both are division of trade.
EVALUATION
• Give two similarities and difference between home and foreign trade

SUB-TOPIC 3: MEASURES TO PROMOTE EXPORT TRADE
• Promotion of credits facilities to the exporters
• Currency should be devaluated to make export cheaper than import
• Export promotion Agency will be set up by the government I other to encourage exportation
• Companies that are export based should be given incentive and holiday.
• Export levied on food items should be reduced in order to encourage exportation
• Communication and transportation facilities should be improved on to make them more efficient
• The existing sea and air-port should be improved.
ENTRE-PORT: this is the re-exporting of goods that has been imported from other countries. Goods imported to a country are later re-exported to another country.
FUNCTIONS OF NIGERIA EXPORT PROMOTION COUNCIL.
• EXPORT DEVELOPING ACTIVITIES: Nigeria export promotion council introduces measures to increase the volume and quality of goods to be exported
• Activities relating to export marketing: it helps to provide information Nigeria exports in the international market and how to improve its marketability.
• Export funding : it provides export financing facilities e.g insurance and credit guarantee schemes
• Provision of trade information: it helps to review existing products for export and also to set out the procedure for exportation.
• Provision of activities that facilitate trade
• Publicity function
• Training activities : it organizes seminars and workshops on export management for people engaging in international trade.
EVALUATION
1. List two methods taking by the government to promote export trade
2. Briefly justify the roles of Nigeria export promotion council.
SUB-TOPIC 4: FORMS/TYPES OF INTERNAIONAL TRADE
1. BILATERAL TRADE: this occurs when one country agrees to exchange goods and services with another country. It involves buying and selling between two countriese.g trade bewen Nigeria and Russia is bilateral trade agreement.
2. Multilateral trade: this involves buying and selling among many countries. It occurs when each nation buys and sells with whatever country it wishes. This result in a greater volume of trade being carried on than in a bilateral trade agreement e,g Nigeria has multilateral trade agreement with countries like America, China Russia, Britain and Hollnad.
REASONS FOR INTERNATIONAL TRADE
1. Differences in the level of industrialization: the level of industrialization differs from one country to another. Some countries are highly industrialized while some are not. This will bring a disparity in the level of production.
2. Inequality in the distribution of national resources: natural resources are not evenly distributed on the surface of the earth. Different resources are found in different part of the world. Nigeria has crude iol in abundance while Ghana has gold.
3. Difference in climatic condition: one of the reasons for international trade is the difference in climatic condition and weather. Some countries are very cold while some are temperate. Rubber and cocoa are found in the countries that are located in the rain forest while groundnut grows better in the savannah regions.
4. Different in skill and technical knowledge: the level of technology in some country are more advance than others. Because of their skills and technical knowledge, goods of high quality are produced e.g Japan is very good in production of automobile and electronics
5. Difference in level of technology: the level of technology of some countries are more advanced than others. Because of these reasons, goods can be produced efficiently in large quantities and better quality than others. This will necessitate international trade.
6. Difference in human resources
7. Expansion of world market.
8. Difference in the efficiency in the use of natural resources.
EVALUATION:
1. Differentiate between bilateral and multilateral trade
2. Give reasons for international trade.
3. Give 2 reasons for international trade
BENEFITS OF INTERNATIONAL TRADE
1. Increase in the total world output: international trade lead to the maximization of output. Specialization gives rise to greater output. Total world output will increase as a result of international trade.
2. Source of foreign exchange: international trade is a major source of foreign exchange earning. By selling goods and services to other countries, a country can obtain exchange earning.
3. Increase in revenue: it provides revenue for the countries concerned. More revenue can be obtained from tariffs levied on import and export.
4. Increase in specialization: foreign trade affords nation the opportunity of specializing the production of goods in which she has comparative advantage. This gives rise to greater output and more standard product.
5. Efficient allocation of resources: when a country specializes in the production of a commodity in which she may be of great has comparative advantage, it will lead to efficient ans effective allocation of resources.
6. Equitable re-distribution of resources: resources from one country may be of great importance to another country. International trade will ensure equitable re-distribution from one country to another.
7. Foster friend relationship and world peace
8. Expansion of world market
9. Increase in the standard of living.
10. Prevention of monopoly
11. Provision of employment
12. Acquisition of skills from one country to another.
DIADVANTAGES OF INTERNATIONAL TRADE
1. Excessive production: in foreign trade, each country specializes in what she has comparative advantage. This will increase world output while cost per unit will reduce.
2. Collapse of infant industry: international trade may lead to the collapse of infant industries. This industry may not be able to withstand competition from foreign companies which are bigger and more efficient.. Moreover, the product of these companies are cheaper and of high quality than others.
3. Importation of dangerous goods: through international trade, dangerous and harmful goods may be imported the country e.g hard drug or expire drug
4. Lack of unemployment: infant industry may not be able to compete with foreign companies and this may lead to retrenchment of workers and the collapse of the industry.
5. Lead to dependence: it brings over dependence on foreign goods at the detriment of the made goods,
6. It encourages dumping ; is the process whereby goods are more cheaper and better in a foreign market than the domestic market
7. Exploitation of poor countries
8. Discourages –self reliance
EVALUATION:
1. Of what relevance is international trade to Nigeria economy?
2. List 4 disadvantages of international trade.
GENERAL EVALUATION:
OBJECTIVE TEST
1. Which of the following is not true of bilateral trade? (a) it is trade between two countries (b) it is normally a product of bilateral agreement (c) it normally involves the use of foreign currency (d) a and b (e) all of the above
2. Which of the following is not the function of the Nigerian Export Promotion Council? (a) export development (b)export financing and provision of export incentive (c) capacity development and export activity operators (d)Provision of technical advice to Nigerian exporters (e) prevention of importation of illegal goods into the country.
3. Which of the following is the disadvantages of international trade? (a) exploitation of young infant industry (b) employment opportunity (c) bulk breaking (d) innovation and motivation (e)expansion of world market
4. Invisible export include the following except (a) banking (b) equipment(c) machinery (d) crude oil (e) groundnut and groundnut oil.
5. Which of the following is the clear distinction between home and foreign trade? (a) both are aids to trade (b) both are bilateral trade (c) both are multilateral trade (d) both are international trade (e) both are entre port trade
ESSAY QUESTIONS
1. Briefly explain the following
i. Home trade
ii. Foreign trade
iii. Entrepot trade
2. Mention 2 disadvantages of foreign trade
3. What do you understand by entre—port?
4. List two measures taking by the government to promote export trade
5. Briefly justify the roles of Nigeria export promotion council.
WEEKEND ASSIGNMENT
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji; Page 37.
PRE-READING ASSIGNMENT: Read about the problems of international trade
WEEKEND ACTIVITY: Give five distinctions between home and foreign trade.

TOPIC: FOREIGN TRADE
CONTENT: 1. Division of foreign trade
2. Barriers to foreign trade
SUB-TOPIC 1: DIVISION OF FOREIGN TRADE
Foreign trade is divided into three. Namely: Import , Export and Entre port.
• IMPORT TRADE: this is the process of buying or purchasing of goods items from other country to another . sImport trade can be categorize into two, visible and invisible import.
i. Visible imports : these are physical or tangible goods purchased from other countries. It includes both capital and consumer goods e.g
1. Automobile
2. Equipment
3. Machinery
4. Rice and
5. Electronics
ii. Invisible import : these are services provided by other countries. Invisible import can not be seen physically. Invisible items are as follows:
i. Banking
ii. Insurance
iii. Payment for travels
iv. Transportation
EXPORT TRADE: This is the process of selling the product of the country to another country(abroad).it include goods and services sold to other countries. Export can be visible or invisible.
i. Visible export : these are tangible goods sold to other nations. Export from Nigeria to other countries are made up of agricultural product and mineral resources. The goods are sold to other countries without being processed such as :
i. Crude oil
ii. Cotton and palm oil
Ii. Invisible export: these are services sold by a country to other countries of the world. Invisible export cannot be seen or inspected. Example of invisible export include the following:
i. Banking
ii. Insurance
iii. Transport
EVALUATION
• Differentiate between import and export trade
SUB-TOPIC 2: BARRIERS TO FOREIGN TRADE
1. Ideological difference : foreign trade will be affected where there is difference in option and political ideology among nations of the world. This will restrict free flow of goods among them.
2. Currency difference: difference in currency is a barrier to international trade. Since it involves two or more currencies, fluctuation in exchange rate and non- availability of foreign currency will impede the flow of goods
3. Artificial barrier: the imposition on duties like tariff on goods create barrier. Strict regulation and tariff limit the extent of foreign trade. Goods that are dispatched to other countries will usually passed through some barriers. This will hinder trading activities.
4. Distance: international trade involve great distance. Because of the distance between one country and another, the cost of freight will be increased. Moreover, it takes several days or months before goods can be dispatched from one country to another.
5. Language: having different languages create barriers. This is a major setback because there would be no effective communication between businessmen from one country to another.
6. Cultural problem: the multiplicity of customs and traditions of various countries can keep away businessmen. The culture, beliefs and norms differ from one country to another and this have a negative impact on foreign trade
7. Difference in legal system : the legal system operating in one country differ from another country. This may hinder international trade as different countries enact different law.
8. Differences in weight and measures
9. Poor communication facilities
10. Political instability.

EVALUATION:
Name and explain four hindrances to foreign trade in Nigeria.
GENERAL EVALUATION
OBJECTIVE TEST
1. ------- the multiplicity of customs and traditions of various countries can keep away businessmen. The culture, beliefs and norms differ from one country to another and this have a negative impact on foreign trade (a) difference in legal system (b) cultural problem (c) language barrier
2. The difference in option and political ideology among nations of the world. This will restrict free flow of goods among them (a) cultural difference (b) ideological reasons (c) poor communication problems.
3. The process of selling the product of the country to another country is known as (a) external trade (b) import trade (c) excise duty
4. Which of the following is the example of invisible export? (a) banking (b) cocoa (c) tariffs
5. physical or tangible goods purchased from other countries is known as (a) visible import (b) visible export (c) invisible export.
ESSAY QUESTIONS
1. List two barriers to foreign trade
2. Foreign trade is basically divided into two, name them.
3. What is the difference between visible and invisible export?
4. What is the difference between visible and invisible import?
5. Mention 2 examples of invisible export.
READING ASSIGNMENT:
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji page75- 79
PRE-READING ASSIGNMENT: Read about the problems of international
WEEKEND ACTIVITY: Give five distinctions between home and foreign trade.
REFERENCE MATERIAL
1. Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji
2. Amplified and Simplified commerce for senior secondary schools book.

TOPIC: INTERNATIONAL TRADE
CONTENT:
1. Procedure for international trade
2. Balance of trade and balance of payment
SUB-TOPIC 1: PROCEDURE FOR INTERNATIONAL TRADE
1. Advertisement and circulars: goods can be advertised in the trade journals which circulate in the countries of the potentials importers. Similarly, circulars and catalogues can be dispatched to the potential customers.
2. Representative: Nigerian exporters employ representatives for customers. The duty of such representative would be to establish contact with foreigners interested in Nigerian goods.
3. Opening of depots abroad: Nigerian exporters can open depots abroad. Such depots serve as show rooms for prospective customers. Foreign organizations interested in opening a trading link with Nigeria may similarly open depots in Nigeria as outlets for their goods. Also, by organizing international trade fairs within Nigeria, Nigerian exportable items are exposed to potential foreign buyers.
EVALUATION
1. Name 2 procedures needed in external trade
SUB-TOPIC 2: BALANCE OF TRADE AND BALANCE OF PAYMENT
Balance of trade: is the difference between the value of a country’s visible exportsand visible imports over a given period of time. It is favorable when a country’s exports are more than imports. It is unfavourable when a country importsare more than exports.
TERMS OF TRADE: This is the rate at which a country’s export is exchanged for its import. It is the relationship between the prices of exports and prices of imports. It is measured as the ratio of index of export prices to index of import price expressed as a percentage. It is given as :
index of export price × 100
index of imports price
A country has favorable terms of trade if the prices of its exports are higher than the prices of its imports and unfavorable if the index of imports is greater than exports.
BALANCE OF PAYMENTS: This is a systematic record of payments to and receipts from foreign countries during a specific time period, usually a year. It is the summary of a country financial transactions with the rest of the world. If the total receipts from foreigners exceed the total payments, the Balance of payment is said to be favorable. On the other hand, if the total payments to the foreigners exceed the total receipts, the balance of payment is unfavorable.
COMPONENTS OF BALANCE OF PAYMENTS
1. Current account: this account covers visible trade and invisible services. It covers merchandise services, trade and income as well as unrequisited transfers.
2. Capital account: this account deals with short and long capital movement. It shows changes in the volume of a country’s foreign assets and liabilities through various capital movements and investment. It involves the actual movement of capital from one country to another.
3. Monetary movement account: This official settlement account shows how a country balances its current and capital accounts. It shows how the surplus or deficit on both current and capital accounts is settled.
FACTORS RESPONSIBLE FOR BALANCE OF PAYMENTS DEFICITS IN NIGERIA
1. Low level of foreign direct investment: the level of foreign investment is very low. This is because the environment is hostile to foreign investment.
2. Overvaluation of the official exchange rate: the exchange rate in Nigeria is overvalued. As a result of this , more will be imported and less exported.
3. High debt service payment: The need to service the public has resulted into serious drain on the foreign earning.
4. Poor performance of non-oil sector: the unimpressed performance of non-oil exports in recent years remains one of the reasons for balance of payments of deficit.
MEASURES TO CORRECTS BALANCE OF PAYMENTS DEFICIT
1. Increase in local production : increase in production will reduce domestic prices of goods and this will stimulate export and reduce import
2. Sales of foreign investment: the country’s abroad can be sold and used to pay the creditors in order to reduce balance of payments deficit.
3. Drawing of the reserve: drawing from external reserve can be used to settle the creditors
4. Export promotion measures;: export can be promoted by giving tax relief and concessions to local entrepreneurs so as to stimulate and promote greater export to pay increased import.
5. Grants and aids from richer countries: aids and grants can be obtained from countries to offset the balance of payments deficit.
EVALUATION:
1. Differentiate between balance of trade and balance of payment.
2.
GENERAL EVALUATION
OBJECTIVE TEST:
1. The reduction in domestic prices of goods and stimulate export will (a) increase in local production (b) reduce local production (c) balanced up local production proceses.
2. Which of the following is used to settle creditors? (a) drawing of the resrve (b) export promotion council (c) foreign investment.
3. A country has favorable terms of trade if the prices of its exports are higher than(a) prices of its imports (b) index of imports (c) exports-import
4. All the following are the components balance of payment except (a) current account (b) saving account (c) excise duty.
5. Which of the following is the procedure for international trade? (a) representative (b)excise duties (c) custom duties
ESSAY QUESTIONS:
1…………………….
2…………………………..
WEEKEND ASSIGNMENT
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji page 100 -102
PRE-READING ASSIGNMENT: Read about the problems of international
WEEKEND ACTIVITY: Give 2 reasons to control balance of payment deficits.
REFERENCE MATERIAL
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji .
Amplified and Simplified commerce for senior secondary schools book 1.

TOPIC: FOREIGN TRADE (INTERNATIONAL TRADE)
CONTENT:
1. Tariffs and reasons for the imposition of tariffs
2. Tools for trade restriction and export promotion
SUB-TOPIC 1: TARIFFS AND REASONS FOR THE IMPOSITION OF TARIFFS
WHAT IS TARIFFS? Import tariff which is also called import duty, is the tax levied on goods imported into the country. The tax is expressed either as a percentage i.e fraction of the value of an imported good or per unit of it. When expressed as a fraction of the value of good, it is called an ad valorem import tax . Example,is an import duty of 10 percent of value of an imported cars, so that import duty of N200,000 would be paid on a car costing N2 million. When expressed on per unit basis, it is called a specific duty. In order words, while an ad valorem duty is calculated on the monetary values of the imported goods, a specific duty is calculated on the weight of quantity of imported goods, irrespective of their monetary value or the market price. Imported duties are assessed and collected in Nigeria by the customs Authority called the Nigerian Customs Service (NCS).
REASONS FOR THE IMPOSITION OF TARIFF
1. Revenue generation: tariff revenue is a major component of government total revenue. It comes only after the government revenue derived from petroleum activities
2. Protection of domestic economic activities from foreign competition: the higher the tariff rate, the higher would also be landing cost of imported goods and hence, the price of imported goods in the market.
3. Infant industry protection : industries have to be protected against unfair competition from abroad. Imposition of tariffs on imports coming from other countries competitors is a way of accomplishing this protection.
4. As an anti-dumping policy: sometimes foreign suppliers deliberately sell imports at a very low prices, even if this means they would be making a loss by so doing. Their home governments too may subsidise them to enable them to sell cheaply in other countries.
5. A tools for settling political score: Tariffs may be imposed on goods emanating from countries perceived to be unfriendly.
6. Improvement in the balance of payments position and conservation of foreign reserves.
7. Protection of domestic currency against depreciation : depreciation is the use for loses in value of an asset due to wear and tear in the course of its uses.
8. Retaliation against tariff imposition by trading partners as an instrument of trsde negotiation.
9. A change in income distribution pattern.
EVALUATION:
1. What is tariff?
2. Give 2 reasons for the imposition of tariff in Nigeria.
SUB-TOPIC 2: TOOLS FOR TRADE RESTRICTION AND EXPORT PROMOTION
1. Tools for import restriction
i. Import tariff: this is the tax imposed on the importation of imported goods coming into the country.
ii. Quota or qualitative restriction: this occur when there is an upper limit to the quantity that can be imported of a particular good.
iii. Embargo: this refers to an outright ban on the importation of a good
iv. Qualitative barriers: These refers to various impediments and inhibitions that are put in place regarding the quality attributes and specification that some goods must possess for them to be permitted to be imported into the country.
v. Exchange rate depreciation
vi. Bilateral trade agreements
vii. Subsidy to domestics producers
2. Tools for export restriction:
I. Export tariff:
II. this refers to an outright ban on the exportation of goods.
III. Qualitative barriers :
IV. Exchange rate appreciation or revaluation:
V. Taxation on domestic producer
3. Tools for export promotion :
i. Txa concession: tax exemption and concession are often given to export industries and activities , as an incentive to produce more. It is a form of what is called fiscal incentive.
ii. Grant , subsidies and loans: this is another forms of fiscal incentive . The government gives grants or subsidies to export industries to assist them. Credits facilities are also sometime provided on much more concessionary terms (in term of interest rates, maturity, collateral requirements when compared with loans from banks.
iii. Underwriting of risk associated with export: due to the operations of exporeters in less familiar grounds of foreign countries, they faced peculiar risks, including the risks of non-payment by the foreign customers.
iv. Provision of information on export potentials on opportunities : government often enlightens industrialists and entrepreneurs on the opportunity and potentials that in exporting certain products to specific industries.
v. Export development
vi. Infrastructural development
vii. Diplomatic measures, including bilateral and multilateral trade negotiation.\
viii. Conducive exchange rate policy
EVALUATION:
1.
2.
GENERAL EVALUATION:
OBJECTIVE TEST:
1. The tax levied on goods imported into the country is known as (a) tariff (b) excise duty (c) custom duties.
2. The qualitative restriction on either imported or exported goods is known as (a) tariff (b) quota (c) custom duties.
3. Which of the following is the correct reason for the imposition of tariff? (a) to raise revenue (b)to raise the monthly income of the top politician (c) to raise the monthly income of house of Representative so that they can travel at will
4. Which of the following tools is used for export restriction? (a) export tariff (b) import tariff (c) import duties
5. All the following are calculated on the monetary values of the imported goods except (a) ad valorem duties (b) specific duties (c) general duties
ESSAY QUESTIONS:
1.
2.
3.
WEEKEND ASSIGNMENT
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji page 105 -107
PRE-READING ASSIGNMENT: Read about the problems of international
WEEKEND ACTIVITY: Give 2 merits of customs and excise duties
REFERENCE MATERIAL: Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji .

TOPIC: FOREIN TRADE(INTERNATIONAL TRADE)
CONTENT:
1. Functions of customs and excise authority
2. Functions of Nigeria Export Promotion Council
3. Functions Nigerian Airports Authority and
4. The Nigeria Ports Authority.
SUB-TOPIC 1: Functions of customs and excise authority
The customs and excise management Act (CEMA) cap 45, Law of the Federation of Nigeria, 2004 vest legal authority in the Nigeria Customs service (NCS) to act o behave of the Federal Government of Nigeria in all customs matter
1. Control and management of the administration of the customs and excise laws in general
2. Collection of revenues of customs and excise and accounting for same to the government
3. Enforcement of import and export restriction and prohibition: This includes carrying out anti-smuggling operations at the ports and borders in order to forestall importation and exportation of contrabands and goods injurious to the health and security of the country.
4. Provision of useful inter-agency cooperation with other agencies of government such as the Nigeria Police , NDLEA, NAFDAC, and SON
5. Trade facilitation
6. Handling trade procedures and documentation.
NIGERIA EXPORT PROMOTION COUNCIL
1. TO promote the development and diversification of Nigeria’s export trade
2. To assist in the development and promotion of export-related industries in Nigeria
3. To spearhead the creation of appropriate incentive
4. To articulate the promotion and implementation of policy relating to export and programme of the Nigerian Government
FEDERAL AIRPOTS AUTHORITY OF NIGERIA (FAAN)
1. Development, maintenance and provision of necessary services and facilities for air transport
2. Provision of adequate facilities and personnel for effective security at all air port
3. Creating in a general sense , conditions for development of air transport and services connected with it.
4. Development and provision of facilities for surface transportation within airports.
5. Provision of accommodation and other services for effective handling of passengers and freight.
NIGERIA AIRPORT AUTHORITY (NPA)
1. Development, ownership and operation of ports and harbours
2. Provision of safe and navigable channels
3. Offering of cargo handling and storage services
4. Maintenance of ports facilities and equipment.
5. Ensuring safety and security.
6. Development and ownership of property.
EVALUATION
1. List two functions of the following agents
2. Federal airports authority of Nigeria
3. Nigeria airport authority
4. Nigeria export promotion council
5. Nigeria customs and excise duty
GENERAL EVALUATION
OBJECTIVE TEST:
1. Which of the following is not a normal reason for imposition of import tariff? (a) revenue generation for the government (b) retaliation against tariff imposition by trading partner (c)protection of domestic economic activities foreign competition
2. Which of the following is not a function of the Nigeria export promotion council? (a) prevention of illegal goods into the country (b) export development (c)export financing and provision of export incentive
3. Enforcement of import and export restriction and prohibition is the function of (a) custom and excise duty (b) Nigeria port authority (c) Nigeria export promotion council.
4. To articulate the promotion and implementation of policy relating to export and programme of the Nigerian Government (a) custom and excise duty (b) Nigeria port authority (c) Nigeria export promotion council.
5. Provision of useful inter-agency cooperation with other agencies of government such as the Nigeria Police , NDLEA, NAFDAC, and SON (a) custom and excise duty (b) Nigeria port authority (c) Nigeria export promotion council.
ESSAY QUESTIONS:
WEEKEND ASSIGNMENT
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji page 103 -104
PRE-READING ASSIGNMENT: Read about the problems of international
WEEKEND ACTIVITY: Give 2 merits of customs and excise duties
REFERENCE MATERIAL
Read Evan new edition commerce for senior secondary schools book 1 by M.O Odedokun, P.C Udokogu and C.O.N Udoji .