Classwork Series and Exercises {Business Studies – JSS2}: Aids to Trade

Business Studies JSS2

Week 8

Topic: Aids To Trade

Contents:

• Meaning of Aids to Trade
• Roles of Custom and Excise in Foreign Trade

A. Definitions

Aids to trade: Aids to trade are the services that make trade easy to carry out. Examples are Banking, insurance, Advertising, Warehousing, Transportation etc.

Banking: This is the process of keeping money or other valuables for use at any time. The banks act as payment agent. They are lenders to the financial system because they provide funds for use by businessmen and women.

Insurance: Insurance is a process of passing risk and its effect from the insured (the person) to the insurer (the insurance company) Insurance ensures that the effects of risk in business are not too much on the insured businessman or woman.

Advertising: Advertising brings the consumer and the manufacturer together. It is a process of making all the goods that are available for sale s to create consumer awareness. Advertising helps business a the information gathered by the consumers help them to make decision about the purchase of needed goods/

Warehousing: Warehousing is a process of keeping goods safe till the time it will be needed by the consumer or the buyer. Warehousing helps the businessman to plan appropriately on purchases and what to buy later. Warehousing helps to guide against wastage and provides a mean through which goods produced now are kept for later consumption.

Transportation: Transportation is a process of moving goods from the manufacturer to the place of consumption. The process of trade is not complete until the goods produced get to the final consumer.

B. Roles of custom and Excise in foreign trade

The roles of custom and excise in foreign trades include

• Collection of information and facts about trade to help planning by the government
• Control of the flow of goods in and out of the country. Goods needed in the country are not allowed to be taken out
• Collection of various dues like import duties and excise duties
• Supervision of bonded houses. Bonded warehouses are where imported goods are kept till duties are paid on them.

Test and Exercise

1. The insurer in insurance is referred to as (a) the company (b) the person who wants to protect her goods (c) the workers in the company (d)the public
2. Trade is not complete until it gets to the (a) supplier (b) consumer (c) wholesalers (d) retailers
3. The home trade is classified as (a) home and foreign trade (b) oversea and undersea trade (c) wholesale and retail (d) international and foreign trade
4. One of the roles of the custom and excise duties is (a) Collection of various dues like import duties and excise duties (b) collection of bribe (c) checking of passengers (d) all of the above
5. A warehouse where imported goods are kept is called (a) bonded warehouse (b) manufacturer’s warehouse (c) public warehouse (d) none of the above

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