WEEK 1 KICKOFF TEST AND CLEANING OF THE COMPOUND

WEEK 2 HOME TRADE

Home Trade involves the exchange (i.e. buying and selling) of goods and services within a
country and sub-divided into wholesale trade and retail trade.
Characteristics of the Retailer/Retail Trade
1) The retailer sells in units or fractions.
2) The retailer stocks and sells a wide variety (range) of goods.
3) They sell directly to the ultimate consumers.
4) They buy in small quantities from the wholesaler or manufacturer.
5) The wares consists of fast selling products, mainly consumer goods.
6) A large number of small shops are involved.
7) They are the final link in the distribution chain
Function of Retailer/Retail Trade
To the manufacturer:
(i) He sells the goods produced by the manufacturer to the final consumer.
Factors to be considered in setting up a retail trade
(ii) He helps in informing the manufacturer about the likes and dislikes of the consumers either
directly or through the wholesalers.
(iii) He gives advice to the manufacturer
To the Wholesaler:
(I) He provides information about consumer needs and changes in market trends to the
wholesaler
(ii) He gives advice to the wholesaler
To the Consumer:
(I) Provision of a variety of goods
(ii) Granting of credit to credit –worthy customers
(iii) Provision of useful information and advice
(iv)Breaking the bulk i.e. selling in smallest quantities (units) to the consumer
(v) Provision of after – sales services e.g. installation, servicing etc.
Small scale retailers.
Itinerant Traders: The common feature of itinerant traders is that they move from place to place
to sell, thereby making goods handy for customers i.e. goods are brought to the consumer’s
doors. Examples of itinerant traders are hawkers, peddlers, gypsies etc.
Mobile shops: These are motor vans or Lorries used as shops with goods well-arranged. They
build up regular customers and are very convenient for consumers in remote areas. They
advertise by music, microphone announcement, public-address system, jingles etc.
Small Store or Single Shops: These are small stores found in front of residential houses or at
shopping complexes. They are conveniently located for customers and are found in both urban
and rural areas
WEEK 3 HOME TRADE
Large scale retailer.
Supermarket: This is a large scale retailing shop offering for sale, principally by self-service,
household goods like groceries, provisions, tinned foods, frozen food, vegetables, fresh fruits etc.
Mail order: This is a form of large scale retailing in which buying and selling is carried out
through the Post Office or through agents. The Mail Order firms contact prospective customers
by mail, receive their orders by mail and make delivery of goods to customers also by mail. It
involves the use of specially prepared catalogues that presents the retailer’s products both
visually and in writing
Modern trend in retailing.
Self-service: This is a method that allows customers to do their shopping in a shop with little or
no assistance from sales attendants. The goods are conspicuously displayed and arranged on the
shelves of shops with price tags. The customers goes about in the shop, examines the good
displayed, compares them, tries them on, where necessary, select those of his choice and gathers
them in a basket portray made available in the shop, The customer finally approaches the
checkout counter where he pays for the goods bought to the cashier, This arrangement saves time
because it avoid bargaining . Self –Service is associated with large scale retailer who have
enough space and the necessary equipment e.g. supermarket, departmental stores, hyper markets
etc.
Branding: This is a general term covering names, design, marks, symbols or description which
may be used by a producer to distinguish his goods from that of other organization. Branded
goods are therefore, goods sold under a refrigerated trade mark or trade name to distinguish one
manufacture products from similar products of other manufacturers. Examples of brand or trade
names are Elephant, Omo, and Ariel for detergents: Pepsodent, Close up, Colgate, MacLean for
toothpaste etc.
WEEK 4 HOME TRADE
Main characteristics of large scale and small scale retailers
Larger scale Features
1. Extensive Inventory: Large scale retailers typically carry a wide range of products, offering
extensive choices to customers in various categories.
2. Sophisticated Supply Chain: They often have sophisticated supply chain management
systems, enabling efficient handling of large volumes of goods from manufacturers to
consumers.
3. Brand Recognition: Large retailers frequently have established brand names and strong
market presence, leading to high brand recognition among consumers.
4. Economies of Scale: These retailers benefit from economies of scale, allowing them to
negotiate better deals with suppliers, reduce per-unit costs, and offer competitive prices to
customers.
5. Advanced Technology: Large-scale retailers leverage advanced technologies for inventory
management, point-of-sale systems, and customer relationship management, enhancing
overall operational efficiency.
Small scale Features
1. Personalized Service: Small retailers often provide more personalized and customer-
centric services due to their close interactions with customers.
2. Localized Focus: They have a localized focus, catering to the specific needs and
preferences of the community or neighborhood where they operate.
3. Flexibility: Small scale retailers can quickly adapt to changes in the market, customer
demands, and trends due to their flexibility and agility in decision-making.
4. Community Integration: Small retailers are often deeply integrated into the community,
fostering strong relationships with local customers and businesses.
5. Owner Involvement: In many cases, the owner is directly involved in the day-to-day
operations, leading to a hands-on approach and a strong connection with customers and
employees.
 Reasons why retail business fail
1. Poor Management
2. Inadequate Market Research
3. Insufficient Capital
4. Ineffective Marketing Strategies
5. Inability to Adapt to Market Trends
6. Lack of Differentiation in Products or Services
WEEK 5 HOME TRADE
Whole sale trade: Wholesale trade (wholesaling) involves the buying of goods in large quantities
from the producers or manufacturing and re-selling in small quantities to retailer. Wholesaler is a
trader who purchases goods in large quantities from the manufacturing and sell in small
quantities to the retailers
Channel of distribution
The channel of distribution describes the path through which goods moves from the products to
the consumer. The channel of distribution for goods could be any of the following:
Producer – Wholesaler – Retailers – Consumers
Producer – Wholesaler – Consumers
Producer – Retailers – Consumers
Factors to Be Considered before Choosing a Particular Channel Of distribution Of A
Commodity
1. The type of nature of the commodity e.g. whether it is a perishable good or durable
goods.
2. 2 Geographical consideration e.g the location of customers
3. The existing and potential demand for the commodity i.e the extent of demand for the
product.
4. How regular the demand for the product is
5. The number of retail outlets in an area
Function of agents
1. Facilitate Market Expansion
2. Enhance Efficiency in Distribution
3. Provide Market Information
4. Mitigate Risk and Uncertainty
5. Offer Specialized Expertise
6. Strengthen Relationships with Channel Members
WEEK 6 FOREIGN TRADE (INTERNATIONAL TRADE)
Foreign trade (international trade): International trade /foreign trade refers to the exchange of
goods and services across the border of two or more countries by their resident and government.
In other words, it is exchange of goods and services between people and different countries.
Types of foreign trade
1. Bilateral Trade: This takes place when one country agrees to (trade) exchanged goods and
services with another country e.g. Nigeria and Japan
2. Multilateral Trade: This is the buying and selling of goods and services among countries. It
occurs when each nation buys and sells with whatever country it wishes to track with e.g. Nigeria
has multilateral agreement with countries as America, Russia, China, Britain etc.
Advantages and disadvantages
Advantages of International Trade
1. It leads to interdependence among nations because no nation is self –sufficient
2. It is a source of revenue
3. Equitable re-distribution of natural resources
4. Employment opportunity
5. It fosters unity among countries
Disadvantages of International Trade
1. International trade leads to exploitation of poorer countries
2. It leads to dumping of goods
3. Visible imports
4. It does not encourage creativity
Week 7 Foreign trade (international trade)
Barriers of foreign trade
1. Currency differences: Differences in currency is a barrier because it involves two or more
currencies change in exchange rate and non-availability of foreign currencies hinder the flow of
goods.
2. Artificial barrier: Imposition of duties like tariff on imported goods create barrier strict
regulation and tariff limits the extent of foreign trade.
3. Distance: Distance between one country and another and the cost of freight all hinder foreign
trade.
4. Cultural problems: Customs and traditions various countries keep away businessman and have
negative impact on foreign trade.
5. Difference in language: language differences creates communication barrier
Division of foreign trade
Imports: These are goods and services procured and are being transferred from another countries.
a. Invisible Imports: These are services provided by other countries e.g. banking, insurance,
shipping, transportation etc.
b. Visible imports: these are exchange of tangible items from other countries.
Export Trade: Is the selling of a country’s products in abroad i.e. selling of one country product
toother countries. Export includes goods and services to other countries. Export can be visible or
invisible.
Visible Export: are tangible goods sold to other nations. Nigeria exports are agricultural product
and mineral resources. These are sold to overseas without being processed e.g. crude oil, cotton,
palm oil, etc.
Procedures for foreign trade
Market Research: Conduct thorough market research to identify potential opportunities and
challenges in the target foreign market.
Legal Compliance: Ensure compliance with the legal and regulatory requirements of both the
exporting and importing countries.
Product Adaptation: Modify products or services to meet the specific needs and preferences of
the target market.
Determine Incoterms: Clearly define International Commercial Terms (Incoterms) specifying
responsibilities and costs between the buyer and the seller.
Select Mode of Entry: Choose the appropriate mode of entry, whether through exporting,
licensing, joint ventures, or establishing a foreign subsidiary.
Establish Trade Terms: Negotiate and establish trade terms, including price, payment terms, and
delivery schedules, with the foreign buyer.
Documentation: Prepare and complete necessary documentation, including invoices, packing
lists, certificates of origin, and other required paperwork.
Customs Clearance: Ensure compliance with customs regulations and facilitate the smooth
clearance of goods through customs in both the exporting and importing countries.
Shipping and Logistics: Arrange for transportation, select shipping methods, and coordinate
logistics to move goods from the origin to the destination.
Payment Processing: Agree on payment terms and facilitate secure and efficient payment
processing methods, such as letters of credit or online payment systems.
Risk Management: Implement risk mitigation strategies, such as insurance, to protect against
potential risks during transportation or trade transactions.
After-Sales Service: Provide after-sales support to foreign customers, including addressing
inquiries, handling warranty claims, and maintaining customer satisfaction.
Balance of trade and balance of payment
Balance of Trade: The balance of trade is a subset of a country's balance of payments and
represents the difference between the value of a country's exports (goods and services sold to
other countries) and its imports (goods and services purchased from other countries) during a
specific period, usually a year. A positive balance of trade, or a trade surplus, occurs when a
country exports more than it imports. Conversely, a negative balance of trade, or a trade deficit,
occurs when a country imports more than it exports.
Balance of Payments: The balance of payments is a comprehensive record of all economic
transactions between a country and the rest of the world over a specific time period. It is divided
into two main components: the current account and the capital and financial account.
Current Account: This accounts for the trade of goods and services, income received or paid, and
unilateral transfers. A surplus in the current account implies that a country is exporting more
value than it is importing.
Capital and Financial Account: This accounts for capital transfers and the acquisition or disposal
of non-financial and financial assets. A surplus in this account means that a country is receiving
more foreign investment and loans than it is investing abroad.
WEEK 8 FOREIGN TRADE (INTERNATIONAL TRADE)
Tariffs and reasons for the imposition of tariff
A tariff is essentially a tax imposed on imported goods and services. It functions like a price
increase, making foreign products more expensive for domestic consumers. Governments utilize
tariffs for various reasons, which can be broadly categorized into:
 a. Protect Domestic Industries: This is the most common reason, aiming to shield new or
struggling industries from cheaper foreign competition
b. Protect Jobs: Tariffs can be seen as a tool to safeguard jobs in specific sectors threatened
by foreign imports. The increased cost of imported goods, coupled with incentives for
domestic production, can lead to more jobs in the protected industries
c. National Security: Certain goods are deemed critical for national security, and
governments might impose tariffs on them to ensure domestic production capacity and
reduce reliance on foreign imports. This could involve sensitive technologies, strategic
resources, or essential military equipment.
d. Bargaining Chip: Tariffs can be used strategically in international trade negotiations. By
threatening or imposing tariffs, a government can put pressure on other countries to make
concessions or change their trade policies that are deemed unfavorable. Address Unfair
Trade Practices: If another country is suspected of engaging in unfair trade practices like
dumping (selling goods below cost) or subsidizing exports, tariffs can be imposed to
counter the advantage they gain. This aims to level the playing field and protect domestic
industries from such practices.
e. Environmental Protection: Tariffs can be used to discourage imports that are seen as
environmentally harmful or produced with unsustainable practices.
Tools for trade restriction and export promotion
1. Tariffs: Imposing taxes on imported goods to make them more expensive and less
competitive in the domestic market.
2. Quotas: Setting limits on the quantity of specific goods that can be imported, restricting
the total volume of imports.
3. Embargoes: Complete bans on the import or export of certain goods to or from specific
countries.
4. Licensing Requirements: Requiring licenses or permits for specific imports or exports,
controlling the entry or exit of certain products.
5. Subsidies and Domestic Support: Providing financial assistance or incentives to domestic
industries to make them more competitive compared to foreign counterparts.
6. Non-Tariff Barriers: Implementing various regulatory measures, such as product
standards, safety regulations, and licensing, to create obstacles for imports.
Tools for Export Promotion
1. Export Credit and Insurance: Offering financial support and insurance to domestic
companies to encourage them to explore foreign markets.
2. Export Subsidies: Providing financial incentives or subsidies to domestic companies to
make their products more competitive in international markets.
3. Trade Agreements: Forming agreements with other countries to reduce trade barriers and
facilitate the flow of goods and services across borders.
4. Export Processing Zones (EPZs): Establishing special economic zones with favorable
conditions for businesses engaged in export-oriented activities.
5. Market Research and Information: Providing support for market research and information
to help businesses identify and exploit export opportunities.
6. Trade Facilitation Measures: Streamlining customs procedures, reducing paperwork, and
improving logistics to make exporting easier and more efficient for businesses.
WEEK 9 FOREIGN TRADE (INTERNATIONAL TRADE)
Custom and Excise authority is an agency charged with the responsibilities of assessing and
collecting revenue due from import and export. It is a revenue collecting organ of the
government. The department of customs and excise under the ministry of internal affairs.
Customs and excise authority collect the following during:
Import duties: they are taxes imposed on surplus goods and services that come from other
countries into a particular country, it is also known as traffic and they belong to what we all
customs duties.
Exporter duties: these are taxes imposed on surplus goods and services of a country that are sent
to other countries.
Excise duties: are taxes imposed on locally made goods. They may be based on either or specific.
Functions of customs and excise
1. Prevention of smuggling: smugglers are prevented from bringing or taking goods in or out of
the country.
2. Collection of data on import and export: it is the duty of custom authority to compile
statistics on import and export.
3. Generation of revenue: the department is also charged with the responsibility of generating
revenue for the government form of import and export duties.
4. Collection of taxes: it collects taxes on imported, exported and locally produced goods.
5. Supervision of bonded warehouse: it monitors and supervises bonded warehouse where
goods are stored until the duties are paid.
Nigeria export promotion council
Export trade: is the selling of goods/service of a country abroad. It includes goods and service
sold to other countries. Nigeria export products are cocoa, crude oil, rubber, cassava, etc.
Export can be visible and invisible. Visible export are tangible goods and invisible are service
rendered abroad.
Functions Of Nigeria Export Promotion Council
1. Export Funding: it provide financial facilities to export e.g. insurance and credit guarantee
schemes.
2. Exporting developing activities: it introduces measure to increase the volume and quality of
goods to be exported
3. Provision of trade information: information is provided through publication of trade journal
and export directives.
4. Training activities: it organizes seminars and workshops on export management for people
engaging in international trade.
5. Publicity function: the council prepares and issues not publication containing information
about activities of the council.
6. Activities relating to export marketing: it gives information about Nigeria exporting
international market and how to improve its marketability.
7. Export document preparation etc.
Nigeria airport authority
he Nigeria Airport Authority is a statutory body or public co – operation charged with the
responsibility of managing, maintaining, running, administrating and controlling all airports e.g.
Murtala Mohammed Airport Ikeja, Aminu Kano Airport Kano etc. are international airports in
Nigeria while Calabar airport are examples of local airports.
Functions of the N.A.A
1. Control of airway: it controls domestic and international airline.
2. Maintenance of all facilities: it provides repairs are maintenance facilities to damaged
aircrafts.
3. Provision of warehouse: the authority provides warehouse for storage of goods and luggage
before loading and off-loading.
4. Housing of security agents: it provides office accommodation for customs, immigration,
police and other agents work at the airport.
5. Revenue collection: the airport authority takes ‘charges of collecting airport taxes from
airlines shop operators in the airport etc.
6. Ensure passenger security: the airport ensures passenger safety by providing security.
Nigeria port authority
Nigeria port authority is organ of federal government charged with the responsibilities for
producing facilities and controlling sea port in a country. They provide facilities at the port to
ensure effective and efficient sea transportation. The facilities are boats, harbors, wharf, trailers,
forklifts etc. Nigeria has seaport in apapa Lagos, port-Harcourt, Warri, calabar, sapele etc.
Functions of Nigeria port authority {NPA}.
1. Provision of facilities: the port provides facilities like graner- berth, fork-lifts and
navigational aids.
2. Maintenance and improvement of ports: the authority is responsible for the improvement of
ports including dredging of channels of the port for easy passage of ship.
3. Provision and maintenance of security: it provides security to monitor movement of ships,
cargos and people within and around the nation’s port
4. The port authority provides office accommodation for officials of immigration customs and
shipping companies that work in the ports.
5. Revenue collection: the ports collects harbour and dock dues,
6. Provision of warehouse: the port provide warehouse where cargoes are stored before they are
loaded and after unloading from vessels.