Exploring Types of Trade and Their Impact in Commerce Commerce SS 1 First Term Lesson Notes Week 8
Commerce SS1 First Term Lesson Note – Week 8
Subject: Commerce
Class: SS1
Term: First Term
Week: 8
Age: 14 – 16 years
Duration: 40 minutes
Topic: Trade
Sub-Topic: Types of Trade and Relationships between Different Types
Behavioral Objectives
By the end of the lesson, students should be able to:
- Define trade and identify its main types.
- Differentiate between home trade, foreign trade, and entrepot trade.
- Describe the relationships between the different types of trade.
Keywords
- Trade
- Home Trade
- Foreign Trade
- Entrepot Trade
- Import
- Export
Set Induction
Begin the lesson by asking students if they have ever bought or sold anything. Use this to introduce the concept of trade as buying and selling of goods or services.
Entry Behavior
Students have a basic understanding of exchange from previous lessons on production and specialisation.
Learning Resources and Materials
- Diagrams illustrating different trade types
- Examples of products involved in home, foreign, and entrepot trade
Building Background/Connection to Prior Knowledge
Students are familiar with the concept of exchange and will build on this to understand different trade types.
Embedded Core Skills
- Communication
- Critical thinking
- Global awareness
Reference Books
- Essential Commerce for Senior Secondary Schools (Nigerian Edition)
- Lagos State Scheme of Work for Commerce SS1
Instructional Materials
- Whiteboard
- Markers
- Flashcards with examples of trade goods
Content
1. Meaning of Trade
Trade is the buying and selling of goods and services to satisfy human wants and promote economic relationships.
2. Types of Trade
a) Home Trade
- Definition: Home trade involves the buying and selling of goods and services within a single country. It is also known as domestic or internal trade.
- Examples: Purchasing groceries from a local store or selling furniture within Nigeria.
- Types of Home Trade:
- Retail Trade: Selling goods directly to consumers.
- Wholesale Trade: Selling goods in bulk to retailers.
b) Foreign Trade
- Definition: Foreign trade, also known as international trade, involves the exchange of goods and services between different countries.
- Examples: Exporting Nigerian crude oil to the USA or importing electronics from China.
- Types of Foreign Trade:
- Import Trade: Bringing goods or services into a country.
- Export Trade: Selling goods or services to another country.
- Entrepot Trade: Importing goods to a country for re-export.
c) Entrepot Trade
- Definition: Entrepot trade occurs when goods are imported into a country, not for local consumption but for re-export to other countries.
- Examples: Singapore and Dubai engage in entrepot trade by importing goods, storing or processing them, and re-exporting them to other countries.
3. Relationships between Different Types of Trade
- Home trade and foreign trade are interdependent; products not available in a country through home trade can be obtained via foreign trade.
- Entrepot trade connects different regions, enhancing global trade relationships and creating profit opportunities for the re-exporting country.
- Foreign trade supports the economy by providing access to a wider range of products and services than available domestically.
Presentation Steps
Step 1: Introduction to Trade
Teacher’s Activities: Define trade and its purpose in society.
Learners’ Activities: Students discuss items they have bought or sold recently.
Step 2: Home Trade Explanation
Teacher’s Activities: Describe home trade, highlighting examples and its significance.
Learners’ Activities: Students identify goods commonly traded within Nigeria.
Step 3: Foreign Trade Discussion
Teacher’s Activities: Define foreign trade and explain the types of import and export trades.
Learners’ Activities: Students provide examples of goods Nigeria imports and exports.
Step 4: Entrepot Trade Description
Teacher’s Activities: Explain entrepot trade, giving examples of countries that practice it.
Learners’ Activities: Students suggest reasons why a country would re-export goods.
Step 5: Relationships Among Trade Types
Teacher’s Activities: Describe how home trade, foreign trade, and entrepot trade are related.
Learners’ Activities: Students discuss why foreign and entrepot trades are essential for economic growth.
Assessment
- Define trade and list its main types.
- What is home trade? Provide two examples.
- Explain foreign trade and its two main types.
- Describe entrepot trade and its significance.
- How does foreign trade benefit a country’s economy?
Conclusion
Summarize the different types of trade and their interdependence, explaining how each type plays a role in supporting and growing the economy.
Fill-in-the-Blank Questions
- __________ is the buying and selling of goods and services.
- Home trade takes place within __________.
- Foreign trade involves exchange between __________.
- __________ trade includes importing goods for re-exporting.
- Retail trade is a type of __________ trade.
- Import trade brings goods __________ a country.
- Export trade sends goods __________ a country.
- Singapore is known for its __________ trade activities.
- Goods bought from local stores are examples of __________ trade.
- __________ connects countries through the re-exporting of goods.
- Foreign trade helps countries access goods __________ in their country.
- A wholesaler is a participant in __________ trade.
- Entrepot trade involves goods being __________ and then re-exported.
- Imported electronics from China to Nigeria are examples of __________ trade.
- Foreign trade strengthens __________ relationships among countries.
Frequently Asked Questions (FAQs)
- What is trade?
Trade is the buying and selling of goods and services. - What are the main types of trade?
Home trade, foreign trade, and entrepot trade. - What is home trade?
Home trade is the exchange of goods within a country. - Can you give an example of home trade?
Buying groceries from a local store. - What is foreign trade?
Foreign trade is the exchange of goods between countries. - What are import and export in foreign trade?
Import brings goods into a country; export sends goods out of a country. - What is entrepot trade?
Entrepot trade is the re-export of imported goods. - Which countries engage in entrepot trade?
Countries like Singapore and Dubai. - How does foreign trade benefit an economy?
It provides access to goods not produced locally and boosts economic relationships. - What role does home trade play in an economy?
It supports local businesses and provides products directly to consumers. - How is entrepot trade different from other trades?
Entrepot trade involves importing goods specifically for re-export. - Why do countries engage in entrepot trade?
To make profits by re-exporting goods and acting as trade hubs. - What is the difference between import and export trade?
Import is bringing goods in; export is sending goods out. - How does trade improve global relationships?
By promoting economic interdependence and cooperation. - What are the benefits of trade for consumers?
It provides a variety of products and services.
Evaluation Questions
- Define trade.
- List three types of trade.
- Explain the difference between home and foreign trade.
- What is import trade?
- Describe entrepot trade.
- How does foreign trade support a country’s economy?
- Provide an example of an item Nigeria exports.
- Why is home trade important?
- How does entrepot trade benefit a country?
- Explain the relationship between foreign trade and entrepot trade.
SEO Components
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This lesson introduces students to different types of trade and their importance, helping them appreciate the role trade plays in fostering economic relationships and providing a wide variety of products and services.