Lhsgrz/introduction to commerce

INTRODUCTION

defination of commerce

Definition

lets just look at the definition of Commerce. Commerce is the distribution of goods and services to satisfy human needs and wants,through Trade and Aids to trade.Trade deals with the buying and selling of goods and services.Aids to trade help in the distribution of these goods and services. included in this is transport. communication,banking,advertising,insurance, warehousing and transport

human needs and wants

Definition

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Human needs are the things we need in order to survive . For example we need food,clothes, shelter, water and air for us to survive. water and air are naturally available. food ,clothes and shelter need commerce for us to acquire them. wants on the other hand are the things we need to improve our quality of life. for example a radio to keep up updated with world events and music, a fridge to keep our drinks cool, furniture to our homes comfortable etc.When a person is denied access to the needs, the person is likely to die after sometime. Whereas when a person has no access to wants nothing will really happen to them. Just there quality of life will be low or humble.

chain of distribution

Let us now look at the definition of the chain of distribution

Definition

The chain of distribution is the route that goods and services take as they are being distributed. They are five routes to be taken

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• The first route is the traditional one, where the goods move from the manufacturer or producer to the ,wholesaler and then to the retailer. the consumer is the last one in this route

• The second route is where the goods leave the manufacturer and are taken to the their factory shops(shops ,

owned by the manufactures eg Zambeef shops) the consumers then buy from these shops

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• The third route is where the goods leave the producers and are taken to the marketing boards who then pass them ,on to the wholesalers. The retailers will get the goods from the wholesaler and pass them on to the consumers

• The fourth route is the one where goods leave the manufacturers and are passed on to the wholesalers who then ,let the consumers access them from them

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• The fifth route is the one where goods move from the manufacturers to the large scale retailers and then the ,consumers go to buy from these big shops

PRODUCTION

Objective

:At the end of this chapter the leaner should be able to Define production State and explain the types of production List and explain the various stages of production

Definition

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Specialisation depends on trade and trade depends on specialisation. Specialisation leads to mass production hence the need for a market to sale the surplus. Production is the extraction and processing of raw materials into finished goods. It can also be defined as creation of usefuness / utility. It makes the satifaction of human needs and wants possible.

TYPES OF PRODUCTION

Two types of production exists as follows:

• Direct production
• Indirect production

Specialisation depends on trade and trade depends on specialisation. Specialisation leads to mass production hence the need for a market to sale the surplus.

DIRECT PRODUCTION

Definition

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This is production for ones own use, for instance a farmer grows only enough for his family.Here production is limited

INDIRECT PRODUCTION

Definition

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This involves production of goods for sale. It depends on trade such that those who do not have a certain product will depend on others for what they do not have.

STAGES OF PRODUCTION

There are three stages of production namely

• Primary production
• Secondary production
• Tertiary production

PRIMARY PRODUCTION

This is the extraction of raw materials from nature,examples include fishing, mining, farming and quering

SECONDARY PRODUCTION

This refers to the transformation of raw materials into finished goods.It comprises both manufacturing and construction industries. Manufacturing industries convert raw materials into useable products where as construction industries involve making bridges, roads, dams and houses.

SPECIALISATION AND DIVISION OF LABOUR

Objective

At the end of the lesson pupils should be able to: Define specialisation. Explain the advantages of specialisation. Explain the disadvantages of specialisation. Show how specialisation depends on trade.

Specialisation is the concentration by an individual or organisation on a specific occupation or on a narrow range of work. It is also known as division of labour. Divisin of labour is the breaking down of work into simple tasks for individual workers to specialise. For example Doctors, Lawyers,Accountants,Teachers etc.

Types of Specialisation

• Specialisation by an individual
• Specialisation by product
• Specialisation by region

Advantages of specialisation

• Training is easy because work is broken down into simple processes.
• Time is save because workers do not move from one operation to another.
• Workers become more efficient as they repeatedly do the same work.
• Workers choose the work they can do to the best of their ability.
• It leads to mass production of goods and services.

Disadvantages of specialisation

• It is not easy for a worker who loses employment to find another job.
• Workers become bored because of repeatedly doing the same work.
• Workers are replaced by machines.
• Workers lose their skills as they repeatedly use machines.
• Slow workers may slow down the process of production
• Sickness and absentism may also slow down the process of specialisation.

Specialisation and trade

Specialisation depends on trade and trade depends on specialistion. Specialisation leads to mass production hence the need to market the surplus goods and services.

Activity

What is specialisation? What are the advantages and disadvantages of specialisation? Show how specialisation depends on trade and give examples.