Meaning, Importance, and Forms of Trade Business Studies JSS 2 First Term Lesson Notes Week 4

Lesson Plan: Business Studies JSS 2 First Term Lesson Notes – Week 4

Subject: Business Studies
Class: JSS 2
Term: First Term
Week: 4
Age: 12-13 years
Topic: Trade
Sub-topic: Meaning, Importance, and Forms of Trade
Duration: 40 minutes

Behavioural Objectives:

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

1. Explain the meaning of trade.
2. List the importance of trade.
3. Identify and describe the forms of trade (Home and Foreign Trade).

Keywords:

Trade, goods, services, home trade, foreign trade, import, export

Set Induction:

Ask students if they have ever bought something from a market or shop, and let them discuss what they understand by the term “trade.”

Entry Behaviour:

Students are familiar with buying and selling goods in the market or shop.

Learning Resources and Materials:

• Pictures of local and international markets
• Chart showing examples of goods traded locally and internationally
• Flashcards with terms like “home trade” and “foreign trade”

Building Background/Connection to Prior Knowledge:

Students know about buying goods in the market and can connect this to the concept of trade.

Embedded Core Skills:

• Communication
• Critical thinking
• Financial literacy
• Problem-solving

Learning Materials:

• Lagos State Scheme of Work
• Business Studies textbooks
• Visual aids showing types of trade

Instructional Materials:

• Pictures of different trade activities
• Samples of locally made products and imported goods
• A trade flowchart showing how trade happens between countries

Content:

I. Explain the Meaning of Trade:

Trade is the buying and selling of goods and services. It involves an exchange between buyers and sellers, where money is paid for goods or services received.

II. Importance of Trade:

1. Promotes Economic Growth: Trade helps a country’s economy grow by increasing the production and sale of goods.
2. Provides Employment: Trade activities create jobs in various industries such as manufacturing, transportation, and retail.
3. Improves Standard of Living: By trading, people can get access to goods and services they cannot produce themselves.
4. Encourages International Relationships: Trade helps build relationships between countries.
5. Increases Revenue for Governments: Governments collect taxes from trade activities, which they use for national development.

III. Forms of Trade – Home Trade, Foreign Trade:

1. Home Trade (Domestic Trade):
   This is the buying and selling of goods and services within the same country. For example, when a farmer in Nigeria sells yams to a market in Lagos, it is home trade.
   • Examples:
     a) Buying food at the local market.
     b) A tailor selling clothes within Nigeria.
     c) Buying a locally made car.
2. Foreign Trade (International Trade):
   This is the buying and selling of goods and services between different countries. Foreign trade includes import (buying goods from another country) and export (selling goods to another country).
   • Examples:
     a) Importing cars from Japan to Nigeria.
     b) Exporting cocoa from Nigeria to Europe.
     c) Importing smartphones from China.

Evaluation:

15 Fill-in-the-Blank Questions:

1. Trade is the ______ and ______ of goods and services.
   a) importing, exporting
   b) buying, selling
   c) manufacturing, transporting
   d) trading, exporting
2. ______ trade occurs within a country.
   a) Foreign
   b) Domestic
   c) International
   d) External
3. The act of buying goods from another country is called ______.
   a) Export
   b) Import
   c) Domestic
   d) Sales
4. Selling goods to other countries is called ______.
   a) Importing
   b) Exporting
   c) Domestic trade
   d) International trade
5. Trade helps a country grow by ______.
   a) Creating jobs
   b) Closing markets
   c) Reducing exports
   d) Increasing poverty
6. Trade can improve a person’s ______ by providing access to better goods and services.
   a) Job
   b) Health
   c) Standard of living
   d) Education
7. A farmer selling yams in a local market is an example of ______ trade.
   a) Foreign
   b) Domestic
   c) Export
   d) International
8. ______ helps to build relationships between countries.
   a) Exporting
   b) Importing
   c) Trading
   d) Buying
9. Trading between Nigeria and China is an example of ______ trade.
   a) Home
   b) Local
   c) Domestic
   d) Foreign
10. Foreign trade involves ______ and ______ of goods and services between countries.
    a) creation, selling
    b) buying, selling
    c) borrowing, lending
    d) making, distributing

Class Activity Discussion:

15 FAQs with Answers:

1. What is trade?
   Trade is the buying and selling of goods and services.
2. What is home trade?
   Home trade refers to the buying and selling of goods within the same country.
3. What is foreign trade?
   Foreign trade is the buying and selling of goods between different countries.
4. Why is trade important?
   Trade helps grow the economy, creates jobs, and provides access to goods we cannot produce ourselves.
5. What is an example of home trade?
   A tailor selling clothes within Nigeria.
6. What is an example of foreign trade?
   Importing cars from Japan to Nigeria.
7. What is the difference between home and foreign trade?
   Home trade happens within a country, while foreign trade happens between countries.
8. How does trade create jobs?
   Trade creates jobs in industries like transportation, manufacturing, and retail.
9. Why is foreign trade important?
   Foreign trade allows countries to get goods and services they cannot produce.
10. What does export mean?
    Export means selling goods to other countries.
11. What does import mean?
    Import means buying goods from other countries.
12. How does trade improve living standards?
    Trade gives people access to better goods and services.
13. What is an example of a product Nigeria exports?
    Nigeria exports cocoa to other countries.
14. How does trade benefit the government?
    The government earns money through taxes on trade activities.
15. Why is international trade important for Nigeria?
    It helps Nigeria access goods it cannot produce, like cars and electronics.

Presentation Steps:

1. Step 1: The teacher revises the previous topic, which was “Office Documents.”
2. Step 2: The teacher introduces the new topic, explaining the meaning, importance, and forms of trade.
3. Step 3: The teacher allows the students to contribute, share examples of trade, and corrects them where necessary.

Teacher’s Activities:

• Explain the meaning and forms of trade.
• Use pictures to illustrate examples of home and foreign trade.
• Guide students in understanding the differences between imports and exports.
• Meaning of TradeTrade is an exchange. It involves the exchange of goods and services for a consideration that is known as money. Trade involves buying and selling. Trade can be defined as an act of buying and selling goods and services.
  

  Importance of Trade

  1. Trade provides the opportunity for the buyers to meet the sellers so that they can exchange their goods or wares
  2. Trade makes it possible for producers to market and sell their products
  3. It is a means of easy exchange of goods and services.
  4. It makes human satisfaction possible when there is exchange.
  5. It helps to improve the living standards of people.
  6. It provides food, shelter and clothing for the people.
  7. It makes a good transport system possible as this is needed for trading.
  8. It involves other activities that help society to grow.

   

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  Forms of Trade

  Trade may be classified into two: home (internal) and foreign (international) trade.

  Home Trade

  Home trade or domestic trade is the buying and selling of goods and services within the country. Home trade involves the use of home or domestic currency.

  Classification of Home Trade is wholesale and retail trade.

  • Wholesale Trade: Wholesale trade involves buying in bulk/large quantities from producers or manufacturers, and selling in small quantities to retailers.
  • Retail Trade: Retail trade involves buying in small quantities from the wholesaler, for resale to the final consumers.

   

  Foreign Trade

  Foreign trade is the trade between two or more countries.  It is also known as international trade. For example, trade between Nigeria and Britain. Foreign trade involves the use of two or more currencies. E.g. Naira and Dollar.

  Foreign trade, otherwise called international trade, is a trade involving two or more countries.

   

  Foreign trade can be sub-divided into three;

  • Import.
  • Export.
  • Entrepot.

  Division of Foreign Trade

  Foreign trade has three basic divisions. The include import, export and entrepot trades.

  (i) Import involves the bringing in of goods made in one country into another country. For example, Nigeria brings in or imports raw materials, cars and electrical goods from Britain, Japan and other industrialized countries.

  (ii) Export is concerned with selling to other countries raw materials or finished goods made in one country. For example, Nigeria sells or exports cocoa, crude oil, and timber to U.S.A.

  (iii) Entrepot: This is the re-exporting ofgoods imported from one country to another without any value added to it. For example, Nigeria imports cars fromjapan and export it to Togo.

   

  Aid to Trade

  Aids to trade are the services that make trade easy to carry out. Examples are Banking, Insurance, Advertising, Warehousing, Transportation.

   

  Banking

  Banking is the process of keeping money or other valuables for use at any time. Banks act as payment agents. They are lenders to the financial system. It also ensures that purchases and sales can be made at any time by buyers and sellers.

   

  Insurance 

  Insurance is a process of passing risk and its effect from the insured to the insurer. Insurance ensures that the effects of risk in business are not too much on the insured businessman or woman.

   

  Advertising

  Advertising is a process of making known all the goods that are available for sales to create consumer awareness. Advertising helps business as the information gathered by the consumers help them to make a decision about the purchase of needed goods.

   

  Warehousing

  Warehousing is a process of keeping goods safe till the time it will be needed by the consumer or the buyer.

   

  Transportation

  Transportation is a process of moving goods from the manufacturer to the place of consumption. The process of trade is never complete until the goods produced get to thenar consumer.

   

  Roles of Custom and Excise in Foreign Trade

  1. Collection of various dues like import duties and excise duties. Import duties are money paid for imported goods while excise duties are paid on locally produced goods.
  2. Control of the flow of goods in and out of the country. Goods that are needed in the country are not allowed to be takeout.
  3. Collection of information and facts about trade to help planning by the government.
  4. Supervision of bonded warehouses. Bonded warehouses are where imported goods are kept till duties are paid on them. The custom and excise department is in charge bonded warehouses for the purpose of revenue generation.

Learners’ Activities:

• Participate in class discussions about trade.
• Share examples of products traded in their local markets.
• Work in pairs to list items Nigeria imports and exports.

Evaluation Questions:

1. What is trade?
2. Mention two examples of home trade.
3. How does foreign trade differ from home trade?
4. Name two items Nigeria imports.
5. What does export mean?
6. List one importance of trade.
7. Give one example of foreign trade.
8. Why is trade important for a country?
9. Mention two forms of trade.
10. How does trade help the government?
11. What is trade?
12. List three importance of trade.
13. Explain in writing why home trade is important.
14. Who supervises the activities of the Custom and Excise department?
15. Define aid to trade
16. Explain internal trade
17. Define international trade
18. Write out for differences between home trade and foreign trade
19. How does devotion to duty affect performance?
20. List 10 benefits of devotion to duty

Conclusion:

The teacher goes around to check the students’ understanding and provides feedback on their answers related to trade.

Additional Information:

• Captivating Title: Understanding Trade and Its Importance
• Focus Keyphrase: Meaning and Forms of Trade
• SEO Title: Meaning, Importance, and Forms of Trade
• Slug: meaning-importance-forms-trade
• Meta Description: Learn about the meaning, importance, and forms of trade (home and foreign).

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