Lhsgrz/introduction to commerce
- 1 INTRODUCTION
- 2 PRODUCTION
- 3 SPECIALISATION AND DIVISION OF LABOUR
defination of commerce
human needs and wants
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
- 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
- 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
- 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
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.
- This is production for ones own use, for instance a farmer grows only enough for his family.Here production is limited
- 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
- This is the extraction of raw materials from nature,examples include fishing, mining, farming and quering
- 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
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.