TRADE ASSOCIATIONS AND OTHER ENTERPRISES 

WEEK 3

SUBJECT: Commerce 

Class: SS 2 

TOPIC: Trade Associations and other Enterprises 

CONTENTS: 

• Trade Associations – Aims, Functions 

• Chamber of Commerce: Aims, Functions and structure 

Sub-Topic 1: Trade Associations – Aims, Functions 

Meaning of Trade Association 

Trade association is an association of traders or producer, firms or companies or professionals who deal on the same line of trade or business in order to protect and develop their common interest in order to protect and develop their common interest. 

The following are examples of trade association 

1. Garri Dealers Association
2. Yam Dealers Association Dealers 
3. Motorcycle Dealers Association  
4. Bicycle Spare Parts Dealers Association 
5. National Association of Road Transport Workers 
6. Manufacturers Association of Nigeria 
7. Nigerian Medical Association 
8. Nigerian Bar Association. 
9. National Union of Teachers

AIMS AND OBJECTIVES OF TRADE ASSOCIATION  

The aims and objectives of trade associations include the following: 

1. To maintain professional ethics of their line of trade 
2. To ensure that members provide good quality services
3. To create uniformity in the way their members deal with people. 
4. To supply members with information about developments in their line of trade 
5. To promote trade in a particular line of business 
6. To as a pressure group in order to influence some government policies
7. To defend and advance the interest of members 
8. To assist members who are in need etc.

Functions of Trade Associations 

1. They fix prices for their services or products 
2. They disseminate information to members 
3. They put political pressure on government for the interest of members 
4. The settle disputes among members 
5. They negotiate with other trade associations on a collective 
6. They provide credit facilities and assistance to members 
7. They educate members on trade activities
8. They carry out research and publish the report for members’ use. 
9. They draw up the standard for the practice of their trade. 

EVALUATION 

1. What is trade association? State the aims and objectives of trade association 

SUB-TOPIC 2: CHAMBER OF COMMERCE: AIMS, FUNCTIONS AND STRUCTURE

Meaning of chambers of commerce 

This is an association of merchants, manufacturers, business executives, tradesmen, entrepreneurs etc. From different commercial fields or various lines of trade or businesses, who agree to come together in a town or city with the aim of representing and protecting their business interest. 

Examples of chamber of commerce includes 

1. Nigerian-American Chamber of Commerce 
2. Lagos Chambers of commerce 
3. Ibadan Chambers of Commerce 
4. London Chamber of commerce 
5. Oyo chamber of commerce 

Aims and objectives of chambers of commerce 

Any chamber of commerce is set-up to: 

1. Promote commercial activities in a place, community, town or country 
2. Liaise with other chambers of commerce in relation to their business interest  
3. To influence the policy of the government relating to commercial activities in an area. 
4. To further business interest of the area. 

Functions of chambers of commerce 

The following are the functions of chambers of commerce 

1. To promote trade and industry in the country to settle dispute among members 
2. To settle dispute among members 
3. To issue certificate of origin of goods to members
4. To provide education and training for industry and commerce 
5. To provide information on regulations about travels and sample 
6. To disseminate information on taxes on goods and profit
7. To act as agents for the collection of debts in foreign countries 
8. To evaluate customs duties and regulations and the documents needed by the importing country. 
9. To organise local and international trade fairs for the exhibition, advertisement of local products and the meeting of indigenous and foreign entrepreneurs. 
10. To assist in the translation of letters and documents 
11. To maintain museums where samples of products are kept for inspection 
12. They observe the administration of acts of parliament and regulations about industry and trade to prevent injury to trade 
13. They conduct research in the area of business and their findings released to members so as to enhance their business. 
14. To make sure that there is high standard of commercial activities and integrity between members. 
15. To create uniformity in the methods of dealing in the line of trade 

Structure of chambers of commerce in Nigeria 

The Nigeria Association of Chambers of Commerce, Mines and Agriculture (NACCIMA) stands as the regulatory authority for chambers of commerce in Nigeria. It has a council of elected members who represent their individual group interest. It has 26 chambers of commerce in Nigeria affiliated with it. 

Examples of such affiliated chambers of commerce are as mentioned before. 

Aba chamber of commerce and industry 

Abeokuta chambers of commerce etc. 

Difference between Trade Association and Chambers of commerce 

EVALUATION 

1. What is chambers of commerce 
2. State 5 aims and objectives of chambers of commerce. 

GENERAL EVALUATION

Objective Test 

1. Association of businessmen engaged in both commerce and industry is called (a) Trade Association (b) Trust (c) Cartel (d) Chambers of commerce 
2. One of these is an example of chamber of commerce  (a) Association of Hotel Proprietors (b) the Nigerian Bar Association  (c) Association of School Proprietorship (d) None of the above 

ESSAY TEST

1. Define chamber of commerce 
2. Give five necessary reasons to support their formation
3. List out five trade associations known to you 
4. Write out five functions of trade association 
5. Write out five function of chamber of commerce. 

WEEKEND ASSIGNMENT

Read commerce for Senior Secondary School Book 2 by P.S. Onuka et al page 57-61. 

Pre-Reading Assignment

Read Trade Associations and other enterprises e.g. consortium, cartel, amalgamation etc. 

REFERENCE TEXTS

1. Commerce for senior secondary schools book 2 by P.S. Onuka et al.