Division of Commerce: Home and Foreign Trade Business Studies JSS 1 First Term Lesson Notes Week 9

Business Studies JSS 1 First Term Lesson Notes

Subject: Business Studies
Class: JSS 1
Term: First Term
Week: 9
Age: 10-12 years
Topic: Division of Commerce
Sub-topic: Classification of Commerce, Types of Trade
Duration: 40 minutes

Behavioural Objectives:

By the end of the lesson, students should be able to:

1. Classify commerce into its different components.
2. Differentiate between home trade and foreign trade.
3. Explain the concepts of import and export trades.
4. List products involved in home trade.
5. List products involved in foreign trade.

Keywords: Commerce, home trade, foreign trade, import, export, goods, services, international trade

Set Induction:

The teacher begins by asking students about items bought in their local markets and those that come from other countries, introducing the concept of local (home) and foreign trade.

Entry Behaviour:

Students are familiar with basic trade concepts from their everyday lives, such as buying goods in markets or stores.

Learning Resources and Materials:

• Whiteboard/Chalkboard
• Markers/Chalk
• Diagrams showing classification of commerce
• Charts of products involved in home and foreign trade

Building Background/Connection to Prior Knowledge:

Students already know that commerce involves the buying and selling of goods. This lesson builds on that by discussing the types of trade and how goods move between countries.

Embedded Core Skills:

• Critical thinking
• Communication
• Collaboration

Learning Materials:

• Lagos State Scheme of Work (JSS 1 Business Studies)
• Business Studies textbooks

Instructional Materials:

• Flashcards with definitions of trade terms
• Diagrams of local and foreign trade processes

Content:

1. Classification of Commerce:
   Commerce is classified into two broad categories:
   • Trade: This involves buying and selling of goods and services.
   • Aids to Trade: These are services that help trade, such as transportation, insurance, banking, and warehousing.
2. Types of Trade:
   Trade can be divided into two types:
   • Home Trade: Trade that takes place within a country. Goods are bought and sold locally.
   • Foreign Trade: Trade between two or more countries. Goods are bought and sold across international borders.
3. Home Trade vs Foreign Trade:
   • Home Trade: This refers to the buying and selling of goods within the same country. It includes:
     • Wholesale trade: Buying goods in large quantities and selling them to retailers.
     • Retail trade: Selling goods in smaller quantities directly to consumers.
   • Foreign Trade: This involves buying and selling goods between countries. It includes:
     • Import trade: Buying goods from other countries.
     • Export trade: Selling goods to other countries.
4. Import and Export Trades:
   • Import Trade: This is the process of bringing goods into a country from another country. For example, Nigeria imports cars, electronics, and clothing from other countries.
   • Export Trade: This is the process of sending goods to another country. For example, Nigeria exports oil, cocoa, and groundnuts to other countries.
5. Products Involved in Home Trade:
   • Food items such as rice, yam, and fruits
   • Locally manufactured goods like textiles, shoes, and clothing
   • Household products like furniture and electronics
6. Products Involved in Foreign Trade:
   • Imports: Cars, electronics, clothing, machinery
   • Exports: Crude oil, cocoa, palm oil, rubber

Evaluation (Fill in the Blank):

1. Commerce is divided into __ and aids to trade.
   a) transportation
   b) retail
   c) trade
   d) business
2. Home trade involves buying and selling goods __.
   a) within a country
   b) between countries
   c) only online
   d) in large quantities
3. Foreign trade is also called __ trade.
   a) home
   b) international
   c) local
   d) retail
4. Buying goods from another country is called __ trade.
   a) export
   b) import
   c) wholesale
   d) retail
5. Selling goods to another country is known as __.
   a) export
   b) import
   c) wholesale
   d) local
6. Wholesale trade involves buying in __ quantities.
   a) small
   b) medium
   c) large
   d) personal
7. __ trade involves selling goods directly to consumers.
   a) Wholesale
   b) Export
   c) Retail
   d) Foreign
8. Nigeria exports products like __ and cocoa.
   a) cars
   b) oil
   c) clothing
   d) electronics
9. Home trade deals with goods like __.
   a) imported cars
   b) electronics
   c) local food
   d) foreign machinery
10. Transportation is an example of __ to trade.
    a) export
    b) aids
    c) foreign
    d) wholesale
11. The passing of information from one person to another is known as —–(a) banking (b) communication (c) transportation
12. The creating of awareness of the existence of old and new goods to the public is called –—— (a) advertising (b) insurance (c) transportation
13. Where raw materials and finished goods are kept is known as ——–(a) warehouse (b) banking (c) communication
14. The person that takes insurance policy is called —(a) insured (b) insurer (c) insurance
15. The three methods of transportation are (a) road, bus and car (b) land, air and water (c) land , water and road
16. Trade is basically divided into ——– (a) Home trade and Commerce (b) Home trade and Foreign trade (c) Import trade and Export trade
17. The buying and selling of goods and services within a country is (a) Foreign trade (b) Home trade (c) Export trade
18. The buying of goods in large quantity from producer and selling in small quantity to the retailer is known as (a) Wholesale trade (b) Import trade (c) Foreign trade
19. Foreign is divided into ——- and ——- trade. (a) Home and Foreign trade (b) Wholesale and retail trade (c) Import and Export trade
20. Supermarkets are examples of ——-. (a) Retail trade (b) Foreign trade (c) import trade

Class Activity Discussion (FAQs):

1. What is commerce?
   Commerce is the buying and selling of goods and services and the activities that support trade.
2. How is commerce classified?
   Commerce is classified into trade and aids to trade.
3. What is home trade?
   Home trade refers to buying and selling goods within a country.
4. What is foreign trade?
   Foreign trade is the exchange of goods between two or more countries.
5. What is the difference between import and export trade?
   Import trade involves buying goods from other countries, while export trade involves selling goods to other countries.
6. What goods are involved in home trade?
   Goods like rice, yam, locally made clothes, and household items are part of home trade.
7. What are some examples of products involved in foreign trade?
   Nigeria imports cars and electronics and exports crude oil and cocoa.
8. What is the role of transportation in commerce?
   Transportation moves goods from one place to another, aiding trade.
9. Why is foreign trade important?
   Foreign trade helps countries access products they don’t produce and allows them to sell their own products globally.
10. What are the types of home trade?
    Home trade is divided into wholesale trade and retail trade.

Presentation:

• Step 1: The teacher revises the previous topic on the introduction to commerce.
• Step 2: The teacher introduces the new topic by explaining the classification of commerce and types of trade.
• Step 3: The teacher allows the students to contribute by listing products they know from home and foreign trade.

Teacher’s Activities:

• Classifies commerce into trade and aids to trade.
• Explains the difference between home trade and foreign trade.
• Describes import and export trade with examples of products involved.
• CLASSIFICATION OF COMMERCE/DIVISION OF COMMERCE

  TRADE

  MEANING OF TRADE: Trade could be defined as the exchange or buying and selling of goods and services.

  Division of Trade: Trade is basically divided into two namely – Home Trade and Foreign Trade.

  HOME TRADE: This is the buying and selling of goods and services within the country. Examples are trade between Calabar and Uyo, Lagos and Enugu. One of the features of Home trade is that a common unit of money (naira) is accepted as a means of payment for the trade. Home trade is further divided into Wholesale and Retail trade.

  1. Wholesale Trade: This involves buying goods in large quantity from the manufacturer or producer and selling in small quantity to the retailer.
  2. Retail Trade: This involves buying goods in small quantity from the wholesalers and selling in bits or units to the final consumers.

  There are two types of retail traders in Nigeria namely large scale retailers and small scale retailers. Large scale retailers are Department stores, supermarkets, mail order firm etc. Small scale retailers are market stall owner, kiosk, hawkers etc.

  SUB TOPIC: FOREIGN TRADE

  CONTENT

  Foreign Trade: This is the buying and selling of goods and services between two or more countries. It is divided into Imports and Exports trade.

  Import Trade: This is the buying of goods and services from other countries into our country. For example, trade between Abuja and Accra; Lagos and USA etc. Nigeria imports goods like automobile parts, electronics etc. It is further divided into visible and invisible import.

  Export Trade: is the selling of goods and services produced in Nigeria to other countries that need them to satisfy the needs of their citizen. Nigeria exports goods like groundnuts, palm produce, rubber and cocoa, crude oil etc. This is also divided into visible and invisible export.

  READING ASSIGNMENT

  Business Studies for Junior Secondary School Book 1 produced by Cross River State Government Chapter 4 pages 23-24

Learners’ Activities:

• Participate by listing goods they know from both home and foreign trade.
• Take notes on the classification of commerce and types of trade.
• Answer questions during the class discussion.

Assessment (Short Answer Questions):

1. How is commerce classified?
2. What is home trade?
3. What is foreign trade?
4. What is import trade?
5. What is export trade?
6. List three products involved in home trade.
7. Name two products involved in foreign trade.
8. What is the difference between wholesale and retail trade?
9. Explain the role of transportation in commerce.
10. Why is foreign trade important?
11. Explain transportation as an aid to trade.
12. Explain advertising as an aid to trade.
13. What do you understand by the term Aids to trade?
14. State the aids to trade.
15. State three services provided by bank in order to facilitate trade.
16. How does businesses safeguard against unforeseen events?

Conclusion:

The teacher moves around the class, marking students’ work, providing corrections, and ensuring they understand the concepts of home and foreign trade, as well as import and export activities.