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Specialization
Various forms of specialization Advantages and disadvantages Specialization and trade
Channel of distribution
Introduction To Commerce
Commerce is trade and aids to trade. It aims at the distribution of goods and services in order to satisfy human wants and needs. Trade is the buying and selling of goods and services with a view of trying profit. There are two types of trade namely; home (local) trade and International or foreign trade. Aids to trade are commercial activities or services that assist trade to take place.
G. Mumba (Mr.) Munali Boys High School, Lusaka
Home Trade
Home trade is the buying and selling of goods and services within a particular country, e.g from Lusaka to Ndola within Zambia. It involves retailing and wholesaling. Retailing is the buying and selling of goods and services in small quantities. The trader involved in this form of trade is called a Retailer. Wholesaling is the buying and selling of goods and services in large quantities. The trader involved in this kind of trade is known as a Wholesaler.
G. Mumba (Mr.) Munali Boys High School, Lusaka
International Trade
Is the buying and selling of goods and services between two or more different countries, e.g between Lusaka in Zambia and Harare in Zimbabwe. It involves Importing and Exporting, and as well as Entrepot trade. Import trade is the buying of goods and services from another country. Export trade is the selling of goods and services to another country. Entrepot trade is the importation of goods from another country for re-exportation to another different country.
Aids To Trade
Aids to trade are commercial services or activities that assist trade to move on smoothly with less or no difficulties at all. There are six aids to trade namely;
Advertising Banking Transport Insurance Communication Warehousing.
G. Mumba (Mr.) Munali Boys High School, Lusaka
PRODUCTION
Work Outline;
Definition of production Types of production Stages of production Factors of production Chain of production Specialization
Definition Various forms of specialization Advantages and Disadvantages How/why specialization depends on trade
Chain/channel of distribution
G. Mumba (Mr.) Munali Boys High School, Lusaka
What Is Production?
It is the provision of goods and services in order to satisfy human wants and needs Or the creation of utility/usefullness in order to satisfy human wants and needs. It involves the extraction of raw materials the way nature provided them. It involves the processing of raw materials into finished or semifinished goods. Production also involves the distribution of goods and services to areas where they are needed using trade and the aids to trade and as well as the direct services provided by personnel such as Doctors, Nurses, Teachers, Police, Lawyers, Accountants, etc.
Types Of Production
There are two types of production namely; Direct and Indirect production. Direct production is the provision of goods and services on a small scale and meant for ones own use only. Indirect production is the provision of goods and services on a large scale and meant for sale. Indirect production calls for specialization.
Stages Of Production
Production takes place in three main stages namely; Primary, Secondary and Tertiary stages. (a) Primary Production:
The extraction of raw materials the way nature provided them. Examples include; mining of minerals from the ground, fishing in Zambias major rivers, cutting of trees in the forest for lumbering purposes quarrying, etc.
Factors Of Production
These are essential resources or inputs that must be available before any provision of goods and services can take place. These are;
Land Labour Capital Enterprise/Organisation
G. Mumba (Mr.) Munali Boys High School, Lusaka
SPECIALIZATION
This is concentration or narrowing of work on a particular aspect. Specialization takes place in various forms such as;
Specialization by individual occupation, e.g Teachers. Doctors, Politicians, etc. Specialization by process/division of labour Specialization by region Specialization by nation Specialization by product.
G. Mumba (Mr.) Munali Boys High School, Lusaka
SPECIALIZATION Cont.
Advantages Of specialization
It leads to mass production of goods and services. Allows individual to choose by themselves what they can do best. It enable workers to become more skilled and efficient due to continued repetition of the same task. Reduced movements of workers involved leads to time saving. Training is quicker as jobs are easy to learn Every workers ability is made use of. Allow for the use of machines which lead to a further saving of time.
G. Mumba (Mr.) Munali Boys High School, Lusaka
SPECIALIZATION Cont.
Disadvantages Of Specialization
The use of machines may lead to loss of employment Workers become bored due to repetition of the same work. If a specialist is absent, work comes to a halt. A specialist who losses employment may not easily find another job else where A specialist will always depend on others for something he can not provide for him self. Specialists may suffer hardships when demand for their goods falls. Individual crafts and skills are lost due to the use of machines.
G. Mumba (Mr.) Munali Boys High School, Lusaka
Chain Of Production
Refers to the different stages a raw material undergoes before it becomes a finished product.
G. Mumba (Mr.) Munali Boys High School, Lusaka