Trade : Internal and International Trade
CLASS: JSS 2 (BASIC 8)
SCHEME OF WORK WITH LESSON NOTES
JSS 2 (BASIC 8)
The pupils have previous knowledge of
that was taught as a topic during the last lesson.
Trade: Internal and International Trade
By the end of the lesson, the pupils should be able to
- Explain the meaning of trade
- Write out at least five important points about trade
- Define internal or home trade
- Explain international or foreign trade
- say the difference between home and foreign trade
- Wall charts
- Related Online Video
- Flash Cards
Methods of Teaching:
- Class Discussion
- Group Discussion
- Asking Questions
- Role Modelling
- Role Delegation
- Scheme of Work
- Online Information
- 9 Year Basic Education Curriculum
Meaning of Trade
Trade 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
- Trade provides the opportunity for the buyers to meet the sellers so that they can exchange their goods or wares
- Trade makes it possible for producers to market and sell their products
- It is a means of easy exchange of goods and services.
- It makes human satisfaction possible when there is exchange.
- It helps to improve the living standards of people.
- It provides food, shelter and clothing for the people.
- It makes a good transport system possible as this is needed for trading.
- It involves other activities that help society to grow.
Forms of Trade
Trade may be classified into two: home (internal) and foreign (international) 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 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;
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 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 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 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 is a process of keeping goods safe till the time it will be needed by the consumer or the buyer.
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
- 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.
- 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.
- Collection of information and facts about trade to help planning by the government.
- 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.
The topic is presented step by step
The class teacher revises the previous topics
He introduces the new topic
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
- What is trade?
- List three importance of trade.
- Explain in writing why home trade is important.
- Who supervises the activities of the Custom and Excise department?
- Define aid to trade
- Explain internal trade
- Define international trade
- Write out for differences between home trade and foreign trade
- How does devotion to duty affect performance?
- List the beneﬁts of devotion to duty.
The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.