Welcome great EduPodian, here is your Second Term SS1 Commerce Lesson Note excerpt.
Scheme of Work
1 Foreign Trade – Introduction
2. Balance of Trade, Term of Trade, Balance of Payments etc
3. Foreign Trade – Structure and Procedures
4 Foreign Trade – Stages and Documentation
5 Customs and Exercise Authority
6 Terms of Quoting Prices /Methods of Payment in Foreign Trade
7 Ports Authority
8-9 Transportation
10 Water Transportation
Week 1:
TOPIC: FOREIGN TRADE
CONTENT
1) Reasons for foreign trade
2) Advantages and disadvantages of foreign trade
3) Barriers to foreign trade
4) Classification of foreign trade
NOTES
Foreign trade or international trade or external trade is the exchange of goods and services between two or more countries e.g. Nigeria, Japan and USA
Reasons for International Trade
1) Uneven distribution of natural resources
2) Differences in climatic conditions
3) Differences in skills and technical know-how i.e. technological difference
4) Differences in the cost of production
5) To augment domestic production of goods and services
6) The need to expand existing market for products
7) The differences in quantity and quality of labour force
8) The need to establish relationship with other countries
IMPORTANCE (ADVANTAGES) OF FOREIGN TRADE
1) It increase government revenue through taxes such as import duties, export duties etc.
2) It improves the… Click here to order the complete Commerce Lesson Note for SS1 second term
Week 2:
TOPIC: FOREIGN TRADE
CONTENTS
1. Terms of trade: Balance of Trade: Balance of Payments
2. Tools of trade restriction 3. Measures for promoting exports
Terms of trade: Balance of Trade: Balance of Payments
A. Terms of Trade: This is the relationship between the prices of a country’s exports and prices of her imports.
1. Favourable Terms of Trade: This occurs when a country’s export have higher prices than the prices of her imports.
2. Unfavourable Terms of Trade: This is the situation when a country’s exports have lower prices than the prices of her imports.
Terms of Trade = Price index of Exports x 100
Price Index of Imports
B. Balance of Trade: This shows the relationship between the total value of a country’s visible exports (i.e. her receipts from visible exports) and that of her visible imports (i.e. her payments for visible imports) during a given period of time, usually one year.
Balance of trade can be favourable when exports exceeds imports or unfavourable when imports is greater than exports.
C. A balance of payments is an annual statement of all payments made to other countries and total receipts from those countries. It is a comprehensive statement of income and expenditure on international account for one financial year.
The balance of payment is made up of three main accounts:
(i) Current Account
(ii) Capital Account
(iii) Monetary Movement Account
FREE TRADE: Free trade means non – restriction of foreign trade. It is a situation where buying and selling takes place between different countries without restrictions or… Click here to order the complete second term Commerce Lesson Note for SS1
Week 3:
TOPIC: FOREIGN TRADE
DOCUMENTS USED IN INTERNATIONAL TRADE
1. Indent: This is an order by an importer to an agent requesting the agent to buy goods on behalf of the importer. There are two types:
a) Open Indent: This is an order which gives the agent freedom to buy goods from any firm or manufacturer he considers suitable
b) Closed Indent: In this order, the importer specifies the firm or manufacturer from whom the agent should buy the goods required.
2. Bill of Lading: This is a document of title giving the holder a right to take possession of the goods to which it refers. It is the document of contract between the exporter and the shipping company (ship owner) for the carriage of goods to their destination. It is made out in triplicates.
The bill of lading contains the following information:
a) The name of the ship carrying the goods (consignment)
b) The shippers name – i.e. the name of the person sending the goods. In other words the consignor’s name.
c) Full description of… Click here to order the complete Lesson Note on Commerce SS1 second term
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