TOPIC ONE: THE SCOPE OF COMMERCE
Commerce is the study of exchange and distribution of goods and services from the point of production to the point of consumption to satisfy human wants.
To bridge the gap between the producers and consumers.
1. Goods- are things which we can see and touch. Example; pen, books, tractor etc.
2.Services -are things which we can’t see and touch but help in progress of life. Example; education, hair dressing, medical care etc.
3. Needs –are necessary things for man in order for man to live he needs food, shelter and clothes.
4. Wants-are not essential things to man in order for man to be happy in life and enjoy the life he want. TV, radio, car, mobile phone.
5. Distribution-The term distribution involves various ways of making goods and services available to the final consumer.
• The term exchange involves buying and selling of goods and services
• Exchange constitute TRADE
• This exchange can be through money as medium of exchange.
7. Producer or seller (anyone who works for payment (money),Example;-Doctors, teachers, farmers, shopkeepers
8. Consumer or buyer
BASIC HUMAN WANTS (NEEDS)
CHARACTERISTICS OF HUMAN WANTS
Our wants are unlimited. We will always want more E.g. Mr. Patel wants to buy a shirt. He also wants a trouser. After he has brought some trousers he will want a pair of shoes and so on.
-We cannot satisfy all our wants, but we can satisfy some of wants
-If you don’t have enough money you can’t buy everything you want but you can satisfy a certain want.
-Things which go together that means if you want one thing you also want another thing.
Example; -Car Petrol
-We want many things but we can’t buy them all now. So we choose the one we want very much. Choice is among the thing we require most against the other.
-There are different ways in which we can achieve or get what we want. Our wants have alternative.
Example; – by plane train
IMPORTANCE OF STUDYING COMMERCE OR WHY
SHOULD COMMERCE BE STUDIED
i.)The study of commerce exposes the business world to students.
ii.) It simplifies the understanding of modern commercial methods.
E.g. export/import goods and services to/from other countries using different units of currency.
iii.) To know frequent changes which happen in commercial world and its effect to the public.
iv.) It enables both consumers and businessmen to know different marketing techniques i.e pricing, discounting, promotions. Etc
v.) It is useful for future specialization vi.) Every individual is involved in commerce vii.) It also enables students to understand pre-introduction of economic concept.
1. Explain the following
a.) Human wants
2. Explain the basic human needs.
- Lectures 1
- Quizzes 0
- Duration 50 hours
- Skill level All levels
- Language English
- Students 0
- Assessments Yes