History of Commerce: Understanding the Barter System and Key Growth Factors for SS1 Commerce SS 1 First Term Lesson Notes Week 2

Commerce SS1 First Term Lesson Note – Week 2

Subject: Commerce
Class: SS1
Term: First Term
Week: 2
Age: 14 – 16 years
Duration: 40 minutes
Topic: History of Commerce
Sub-topic: Historical Background, Factors Affecting Growth, and The Barter System

Behavioral Objectives

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

1. Explain the historical background of commerce.
2. Identify factors that influenced the growth of commerce.
3. Describe the barter system and its limitations.

Keywords

• History of Commerce
• Barter System
• Growth Factors
• Trade
• Exchange

Set Induction

Begin by asking students if they know how people exchanged goods before money was invented, leading into a discussion about the barter system and the history of commerce.

Entry Behavior

Students have basic knowledge of trade and commerce from the previous lesson.

Learning Resources and Materials

• Timeline chart showing stages in the development of commerce
• Diagrams illustrating the barter system and trade networks

Building Background/Connection to Prior Knowledge

Students are familiar with the concept of buying and selling, which will help them understand the evolution of trade.

Embedded Core Skills

• Critical thinking
• Communication
• Historical awareness

Reference Books

1. Essential Commerce for Senior Secondary Schools (Nigerian Edition)
2. Lagos State Scheme of Work for Commerce SS1

Instructional Materials

• Whiteboard
• Markers
• Charts illustrating the barter system

Content

1. Historical Background of Commerce

Commerce has evolved over centuries. Initially, people relied on a system of direct exchange, known as barter, where goods and services were traded without using money. As societies grew, so did the need for a structured system to facilitate exchanges, leading to the development of currency, markets, and trade routes. Commerce then expanded with the introduction of money, banks, and improved transport systems.

2. Factors Affecting the Growth of Commerce

Several factors have influenced the growth of commerce, including:

• Transportation: Improved transportation (roads, rail, ships) made it easier to move goods over long distances.
• Communication: Enhanced communication systems, like postal services and the internet, improved trade connections.
• Banking and Finance: Development of financial institutions enabled smoother and safer transactions.
• Industrialization: With the growth of industries, there was an increase in goods production, which expanded trade.
• Political Stability: Peace and stability encouraged trading relationships between regions and countries.
• Technology: Advances in technology, such as e-commerce, have made commerce faster and more efficient.

3. The Barter System

The barter system was an early form of trade where goods and services were exchanged directly.

• Limitations of the Barter System:
  • Double Coincidence of Wants: Both parties had to need what the other offered.
  • Lack of Common Measure of Value: No standard way to determine the value of goods.
  • Indivisibility of Goods: Some items could not be divided for smaller trades.
  • Difficulty in Storing Wealth: Goods in the barter system could not be stored easily over time.

Presentation Steps

Step 1: Introduction to the History of Commerce

Teacher’s Activities: Introduce the history of commerce and explain its early beginnings with the barter system.

Learners’ Activities: Students share any examples they know of barter or early trade methods.

Step 2: Discuss the Factors Affecting Growth of Commerce

Teacher’s Activities: Use diagrams to illustrate how factors like transportation, communication, and industrialization contributed to the growth of commerce.

Learners’ Activities: Students observe diagrams and relate these factors to commerce they see today.

Step 3: Explain the Barter System and Its Limitations

Teacher’s Activities: Describe the barter system and its limitations, encouraging students to think about why it was replaced by currency.

Learners’ Activities: Students discuss why the barter system was difficult and suggest how money solved these issues.

Assessment

1. Define the barter system.
2. List two limitations of the barter system.
3. Identify three factors that contributed to the growth of commerce.
4. Explain how transportation affected the growth of commerce.
5. Describe one way in which industrialization influenced commerce.

Conclusion

Summarize the lesson by revisiting the historical background of commerce, the growth factors, and the limitations of the barter system.

Fill-in-the-Blank Questions

1. Commerce began with the __________ system of trade.
2. The barter system required a __________ of wants.
3. One factor affecting the growth of commerce is __________.
4. Industrialization increased the production of __________.
5. In the barter system, there was no __________ measure of value.
6. The introduction of __________ helped to store wealth more easily.
7. Improved __________ made it easier to transport goods.
8. The __________ system was difficult to use for divisible goods.
9. The growth of commerce was supported by __________ institutions.
10. The lack of __________ stability hindered early trade.
11. __________ services improved long-distance trade.
12. Commerce expanded with the development of __________ routes.
13. The __________ system was eventually replaced by money.
14. __________ technology has made commerce faster.
15. __________ stability encourages trade between countries.

Frequently Asked Questions (FAQs)

1. What is the history of commerce?
   Commerce began with simple trade and evolved with civilization.
2. What was the barter system?
   The barter system was an early method of trade involving direct exchange of goods.
3. What are some factors that led to the growth of commerce?
   Transportation, banking, communication, and industrialization are some key factors.
4. What was a limitation of the barter system?
   It required a double coincidence of wants, making trade difficult.
5. Why was money introduced in commerce?
   To provide a standard measure of value and simplify trade.
6. How did transportation affect commerce?
   It made it easier to move goods to markets far from the point of production.
7. What role did industrialization play in commerce?
   It boosted goods production, creating more items for trade.
8. What is a common measure of value?
   It is a standard way to determine the worth of goods, which money provides.
9. Why is communication important in commerce?
   It enables buyers and sellers to connect and coordinate trade.
10. What is the double coincidence of wants?
    In barter, both traders needed to want what the other was offering.
11. What impact did political stability have on trade?
    Stability allowed regions and countries to trade safely and regularly.
12. How does technology affect modern commerce?
    It allows faster transactions and global reach, especially with e-commerce.
13. What are trade routes?
    Paths used historically to transport goods between regions and countries.
14. Why was storing wealth difficult in the barter system?
    Goods could spoil or lose value, unlike money which retains value.
15. What role does banking play in commerce?
    Banking facilitates secure transactions and provides credit for trade.

Evaluation Questions

1. Explain the barter system.
2. List two factors that helped commerce grow.
3. What is a limitation of the barter system?
4. Define political stability in relation to commerce.
5. How did industrialization help expand trade?
6. What is meant by a double coincidence of wants?
7. Why was transportation important for early commerce?
8. Describe the role of communication in trade.
9. Give an example of a limitation in the barter system.
10. Why did the barter system eventually give way to the use of money?

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This lesson equips SS1 students with insights into the historical development of commerce, including essential concepts like the barter system and the factors that shaped modern trade.