Types of Commercial Work

1. What are the differences between home and foreign trade?

Trade means buying and selling. In home trade wholesalers may buy goods from manufacturers and sell them to retailers who, in turn, sell goods to the public. In foreign trade goods which are exported are sold to other countries while goods which are imported are bought from other countries.

2. What aids to trade help it to take place?

The aids to trade helpit to take place. Warehouses provide storage for goods. Insurance provides compensation if goods are not delivered or are damaged. Banking allows payments to be made by cheque and banks lend to firms who are short of money. Advertising makes the public aware of products available in shops. Transport moves goods to where they are needed. Communications allow firms to contact each other by, for example, letters and the telephone. The activities just described are only a few examples of trade and aids to trade.

3. Who provides personal services to the public?

People who are involved in direct services are not concerned with the provision of goods but instead provide personal services to the public. Examples of such workers are doctors, dentists, the police, teachers and entertainers.

4. What industries can production be divided into?

Production can also be divided into:

1. Primary industry which is another name for extractive industry. This is the first stage in production.

2. Secondary industry which includes the manufacturing and constructive industries. This is the second stage in production.

3. Tertiary industry which includes commerce and direct services. This is the third stage in production.

5. Why are all production firms interdependent?

Throughout all production firms are interdependent, that is, they rely on each other. Manufacturing industry needs extractive industry to produce raw materials while, at the same time, extractive industry relies on manufacturing industry to produce us machinery. Other examples of interdependence are given in Fig.2.

Constructive industry builds premises for

Commercial services e.g. banking provides loans for

Manufacturing industry makes machinery for

Fig. 2.

6. What is the difference between a producer and a consumer?

All those involved in the provision of goods and services are called producers. The term «producer» is not only used for those who make goods. Consumers are members of the public who use goods and services. Part of consumer spending is on necessities (food and drink, clothing and shelter) which consumers must have to survive. The rest of consumer spending is on luxuries (televisions, cameras etc.) which are not essential.

1.9. Which words go together?

1. extractive 2. tertiary 3. foreign 4. commercial 5. provision of 6. raw

a) trade b) services c) workers d) materials e) industry f) goods