COMMERCIAL STUDIES 7100 SCHEME OF WORK YEAR 10 {NORMAL] for SPN-21

ELEMENTS OF COMMERCE - PART 2

Topic 7: ADVERTISING

Suggested time frame: 3 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

7. ADVERTISING At the end of the lessons, students Activity1: A trader needs to advertise.
should be able to:
7.1 The role of advertising. Advertising is one of the aids to trade. Show
students the reasons for advertising.
• Purposes, benefits, social • Explain the purposes of
aspects and dangers. advertising, its benefits as well For example;
as its dangers. (both for
• Types: informative, 1. (a) Why does a company of need to advertise
consumer and advertiser).
persuasive, collective and its new products?
competitive.
• Recognize the types of
advertising. (b) Why does a shoe shop need to advertise its
latest special offer?
7.2 Media.
• Recognize the types of
• Advertising media; advertising media, and the
advantages and advantages, disadvantages and • Activity 2: Identify the advertising
disadvantages of main factors affecting the choice of
forms; factors affecting medium. Show the examples of advertisements and students to
choice of medium. identify whether they are; informative, persuasive,
• State the methods of appeal collective and competitive.
used in advertising.
7.3 Methods of appeal. For example;
• Define sales promotion and
• Devices and methods of identify its methods. ANNOUNCING THE OPENING OF GRAND
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(a) Are the above advertisements informative,

7.5 Trends in advertising. persuasive and competitive? Give reasons for
your choice.
• E.g. digital billboards,
internet. (b) i. Identify two examples of competitive
advertising given in the advertisements above.

ii. Identify two examples of informative

advertising given in the advertisements above.

• Activity 3: Recognize the different media of

advertising

Show examples how each method of advertising would

be appropriately used to a given situation.

For examples;

1. Jasra Company has developed a new flavor of soft-

drink.

(a) What are the benefits of the following methods of

advertising for Jasra Company?

i. Television
ii. Radio
iii. Digital Billboard
iv. Newspaper

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(b) Jasra Company has chosen Digital Billboard to
advertise its new product. Discuss the advantages and
disadvantages of choosing Digital Billboard.

2. Why might a manufacturer of shampoo use television

rather than newspaper to advertise a new brand?

Activity 4: Sales promotion versus advertising

Explain the meaning of sales promotion and

advertising. How are they different from each
other?

For example;

1. Distinguish between advertising and sales

promotion.

2. The following are the methods of sales

promotion. Explain the purposes of each of them.
i. Use famous celebrities
ii. Point of sale displays
iii. Special offer

Activity 5: New trends in advertising.

Show the latest trends of advertising to students.

For example;

1. Mr. Lim owns a small computer business. He offers a

repair and maintenance service as well as offering
trading in computers of less than 3 years of usage.

(a) Should Mr. Lim create a website on the Internet for

his business? Give reasons for your answer.

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 (b) What is internet?

Topic 8: TRANSPORT

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

8. TRANSPORT At the end of the lessons, students • Activity 1: Importance of

should be able to: Transportation in trade.
8.1 Transportation.
• Importance of transportation in Shows students the importance of
the chain of distribution. • Give reasons for the importance transportation in helping trade both in home
of transportation in the global trade and in foreign trade.
• Characteristics of different market.
methods and factors affecting For example;
choice of method. • Recognize the factors affecting
• Modes of transport. the choice of transport. 1. Factory A is producing paper production and
supplies the paper for both local market and
• Benefits to a business of having • Identify the modes/types of foreign market. How does transport help its
own transport. transport. production?

• Discuss the proposal of a firm

8.2 Containerization. having own transport;
advantages and disadvantages.
its
• Activity 2: Suitability of the usage of modes
of transport
• Main features. • Describe containerization, its
• Advantages. main features and advantages. Show a situation in trade to see the suitability of
• Reasons for increased used. the types of transport to be chosen.
• Give reasons for the increased
use of containerization by the For example;
8.3 Other trends in transportation. firm.
1. Free Enterprise company of Brunei is an export and

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 • Modern developments and trends
in the handling of goods and
passengers.
8.4 Transport documents.
• Delivery / consignment note; bill
of lading, airway bill.
• Key information and purposes of
each.
8.5 International transport.
•Services offered at seaports and
airports.
• Identify the other trends in
transportation examples charter
flight, charter party and freight
liner.
• Recognize the different types of
transport documents in foreign
trade, its key information and
functions/purposes of each.
• Explain the services provided by
seaports and airports for the
business.
import business. The company exports and imports a
wide range of goods from different countries.
(a) Explain why the company chooses air
transport to transport its imported spare
parts of office machine from Taiwan.
(b) Explain why the company chooses sea
transport to
export its cements and white sand to India.
2.. State and give a reason which mode of
transport is suitable to be used to send the
following products:
i.. Two boxes of fresh flowers from New
Zealand to Brunei.
ii.. 20 sets of furniture from Malaysia to India..
iii. Oil and gas from the oilfield to the
processing area..
• Activity 4: A firm needs its own transport.
The following are the questions to show the
need for a firm to have its own fleet of transport
/ its own lorry / van for its trading activities
(according to its business that it is dealing
with).
For example;
1. R n R store, is a large-scale retailer supplying
goods in a central business area. It supplies
different types of electronic goods, televisions,
microwaves and toasters. Most of these goods
are imported. R n R is also delivering the goods
to the customers.
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(a) Why is it important for R n R store to have
its own lorries for the business?

(b) Discuss the advantages and disadvantages

for R n R of having its own fleet of
transport.

a. Activity 5: Identify the trends in

transportation
and transport documents used in foreign
trade.

Shows the reasons for the usage of the following

trends in transportation transport documents used in
foreign trade.

For example;

1. Give circumstances when a trader might use

each of the following trends of transportation:

i. Charter flights
ii. Charter party
iii. Freight liner

2. In connection with air transport, explain the

following terms;

i. Charter flights
ii. Airways bills

3. In connection with sea transport, explain the

following terms;

i. bill of lading
ii. Charter party

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 a. Activity 6: Importance of
containerization in the world trade.

Shows why exporters have preferred to use containers

in transporting their goods.

For example;

1. Mr. A is an exporter of foodstuffs. He exports

his goods to ASEAN areas. Give reasons why he
prefers to use containerization to export his
goods to these countries.

• Activity 5: Seaports and airports, their

importance in
international trade.

Show how important seaports and airports are

for trading goods and services overseas.

For example;

1. Explain the services provided by seaports and

airports in international trade.

Topic 9: WAREHOUSING

Suggested time frame: 3 weeks

SUB-TOPICS OBJECTIVES SUGGESTED TEACHING ACTIVITIES

9. WAREHOUSING At the end of the lessons, students

Activity 1: Identify the importance of
should be able to:
warehousing.
9.1 Role of warehousing.

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• Warehousing functions and its
importance to trade.
• Link with seasonal production,
demand and price stability.
9.2 Types of warehouse.
• Bonded; cold storage; cash and
carry; large scale retailers’
regional distribution centres;
manufacturers’ and retailers’.
• Main features of each type of
warehouse.
• Importance of each in either
home or international trade.
o Define the role of warehousing
in trade.
o Explain the general
functions/importance of
warehousing to traders.
o Recognize the types of
warehousing.
o Explain the importance of
warehousing to:
 Manufacturer
 Wholesaler
 Large-scale retailer
o Explain the importance of
bonded warehouses to:
 Exporters
 Importers
Shows the importance of warehousing especially to
seasonal products and its role in stabilizing the price of
such products.
For example;
1. Explain how warehousing assists seasonal
products like rice and wheat to be available
throughout the year.
2. Explain how warehousing helps in price stability
of goods.
Activity 2: Manufacturers, wholesalers and large-
scale retailers have their own reasons for having a
warehouse.
These three traders; manufacturer, wholesaler and large-
scale retailer need warehousing to store their respective
goods. Show different reasons for each of them.
For example;
1. Explain why the following traders need a
warehouse for their goods:
i. Manufacturer
ii. Wholesalers
iii. Large-scale retailer
2. Bonded warehouses are important for foreign
traders, i.e. exporters and importers. Explain why.
Activity 3: Recognize the types of warehousing.
Bonded warehouse and cash and carry warehouse are
among the types of warehousing. Show the importance of
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these two warehouses.

For example;

1. Mable Enterprise is an importer. The business is

importing construction products, like tiles, toilet
bowls and roofs. Explain how bonded warehouses
assist his business.

2. Cash and carry warehouses are normally owned

by a manufacturer and wholesaler. How does this
warehouse help small-scale retailers in their
businesses?

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 Topic 10: INSURANCE

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

10. INSURANCE At the end of the lessons, students

Activity 1: Traders need insurance cover.
should be able to:
10.1 Purposes of Insurance.
Show how an insurance agency helps traders in covering
 Understand the purposes of against any insurable risks on their businesses.
• Examples; compensation, insurance to a trader/business.
financial protection, business
For example;
confidence, investment.
 know the idea of pooling of
risks to the insurance 1. How Company A benefits from covering his
• The importance of pooling of business against fire?
risk. company.

 Identify the insurable and non-

10.2 Business and personal risks.
• Types of risks.
• Examples of insurable and non-
insurable risks.
• Risks to international traders.
10.3 Insurance principles.
• Indemnity.
• Insurable interest.
• Utmost good faith.
• Proximate cause
insurable risks. Activity 2: Identify insurable risks and non-
insurable risks.
 Identify the risks that might be
Not all risks are protected by the insurance agency. Show
faced to international traders.
why some risks are insured and some are not.
 Explain with examples the For example;
principles of insurance.
1. Mr. X is a sole trader. His business is not doing so
 Recognize the procedures of well recently. He has a problem with managing the
taking insurance. business.
(a) Why is an insurance company unable to protect
 Briefly explain the following the risk of bad management of Mr. X?
documents: -
(b) Mr. X could insure his business against fire and
theft. Why could an insurance company protect such
• Proposal form
• Cover form risks?
• Policy cover

10.4 Effecting insurance cover.  Know factors to determine the Activity 3: Risks faced by home traders and
rate of insurance premium. international traders.

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• Outline of procedures, including
premiums. Shows students the risks that might be encountered by
 Know the procedures for
home traders and international traders.
claiming the insurance.
• Main documents: proposal form,
cover note, policy. Key
information and purposes of For example;
each.
1. Davy Enterprise is a shipping company. Their
• The role of an insurance broker. business is dealing with shipping the exporters’ and
importers’ goods. Identify and briefly explain the
risks that they might face.
10.5 Statistical basis of
insurance. 2. Dahlia Sdn Bhd is a local factory. They supply
spices products to the local market. Identify and
briefly explain the risks that they might encounter.
• The pooling of risk factors
influencing the level of
insurance premium.
Activity 4: Insurance with idea of pooling risks.
• Calculation of premium and
evaluation of insurance Shows students that insurance business is not like an
quotation. ordinary business of selling goods and provides services,
like air-cut and dress- maker. Insurance rests on the idea of
pooling risks.
10.6 Effecting a claim.
For example;
• Outline of procedures, including
claim form. 1. Insurance business is about pooling of risks. It is
related to the payment of the insurance premium.

(a) Explain the idea of pooling of risk.

(b) How does pooling of risk influence the level of the

insurance premium?

Activity 5: Insurance and rules/principles.

In order for people to insure themselves with the insurance

company, they must follow the principles of insurance. This
is for the benefits of both parties; an insurer and an insured.

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For example;

1. Utmost good faith, indemnity and insurable

interest are the three basic of insurance principles.

(a) Why utmost good is faith necessary when Mr. X

wanted to insure his jewelllery shop against robbery?

(b) How might insurance principle of indemnity apply

to a fire insurance policy?

Activity 6: Important documents of Insurance.

Show the examples of documents, which are used by the

insurance company, such as proposal form, policy cover,
cover note and an insurance prospectus.

For example;

1. Explain briefly the following insurance documents.

i. Proposal form
ii. Policy cover
iii. Cover note

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 Topic 11: INTERNATIONAL TRADE

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

11. INTERNATIONAL TRADE At the end of the lessons, students

Activity 1: A country needs international trade.
should be able to:
11.1 The importance of
International trade is very important for a country to involve
International trade.
• Understand the benefits/ in. Image if a country does not want to open its economy to
advantages of international trade with other countries.
• Benefits of international trade trade to a country.
to a country.
For example:
• The interdependence of
countries within a global • Recognize the following terms
in international trade:- 1. How does international trade benefit the
market. government and the people of a country?
• Imports, exports, visible and
invisible trade. • Import trade
2. Why does a country have to import goods when at
• Export trade
the same time, it produces such imported goods?
• Invisible import trade
11.2 Balance of Trade and • Invisible export trade
Balance of Payments.
Activity 2: Terms of International Trade.
• Understand the idea of
• Distinction between balance of balance of trade and balance These terms are important for the calculation and
trade and balance of payments. of payments. interpretation of statistics relating to international trade.
• Calculation and interpretation
of statistics relating to • Distinguish between the For example:
international trade e.g. balance balance of trade and balance
of trade and balance of of payments. 1. (a) (Set questions on calculation). Calculate the
payments from given figures. table given in fig. 1.

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 (b) What do the following terms mean?
11.3 Customs Authorities.
• Calculate the balance of trade
i. Balance of Trade deficit
and balance of payments from
ii. Adverse Invisible Balance
given figures.
• Main functions e.g. collection of
duties, collection of trade (c) Distinguish between the Balance of Trade and the
statistics. • Interpret the statistics from Balance of Payments.
given figures of balance of
• Supervision of bonded trade. (d) If a country has a balance of Payments surplus, how
warehouses. does the country work out this surplus?
• Explain the main functions of
customs authorities.
11.4 Trading blocs. (e) If a country has a balance of payments deficit,
explain how would she solve the deficit?
• E.g. ASEAN, European Union, • Identify different kinds of
SADC. trading blocs.
Activity 3: Trading Blocs. Their advantages and
• Main features and aims of a • Describe the main features disadvantages
trading bloc. and aims of a trading bloc.
• Advantages and disadvantages A country needs to belong to a certain trading groups. This is
of joining a trading bloc. • Explain the advantages and for its benefits in terms of economic and political links.
disadvantages of joining a
11.5 Free trade and A little thought for the students; If a country is in a chaotic
trading bloc.
protectionism. situation and at the same time is independent i.e. does not
belong to any trading blocs. What would happen to this
• Importance of freeports in • State the importance of free country?
international trade. ports in international trade.
• Restrictions on trade e.g. For example;
tariffs, quotas, embargoes.
• Identify different kinds of 1. (a) What are the advantages for a country to
restrictions on trade : belonging to one of the trading blocs, like ASEAN?
11.6 Difficulties faced by
exporters. • tariffs
• quotas Activity 4: Protectionism
• E.g. distance, language, • embargoes
methods of payment.
Under certain circumstances a country needs to control its
• Describe the difficulties faced imports.
by exporters:
For example;
distance
language 1. Why does a country need to adopt protectionism for
methods of finance, etc. its foreign trade activities?

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Note: The order of syllabus contents may change from year to year in accordance to the
syllabus provided by CIE but there is no change to the content of topics.

Recommended Textbooks:

Betsy Li and Tan Sai Kim, Modern Certificate Guides: Elements of Commerce, 1999

Bill Jones, Revise Commerce, A Complete Revision Course For GCSE

D Butler, GCSE Business Studies, 2001

Dave Hall, GCSE Applied Business

Gerry Gorman, GCSE Business Studies, 1989

Richard Barrett and Mario Gow, Commerce Skills, 1998

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Other sources;

• Past 7100 Commerce “O” Level Papers, From Examination Department

• Past 7101/2 Commercial Studies “O” Level Papers, From Examination Department

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