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SS1: COMMERCE - 2ND TERM

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  1. Modern Trends in Retail Business | Week 1
    2 Topics
    |
    1 Quiz
  2. The Wholesaler | Week 2
    5 Topics
    |
    1 Quiz
  3. Warehouse | Week 3
    3 Topics
    |
    1 Quiz
  4. Foreign Trade (International) | Week 4
    6 Topics
    |
    2 Quizzes
  5. Tariffs & Reasons for The Imposition of Tariffs | Week 5
    5 Topics
    |
    1 Quiz
  6. Functions of Customs & Exercise | Week 6
    4 Topics
    |
    2 Quizzes
  7. Commodity Exchange | Week 7
    7 Topics
  8. Sole Proprietorship | Week 8
    2 Topics
    |
    1 Quiz
  9. Partnership | Week 9
    5 Topics
    |
    6 Quizzes
  10. Money | Week 10
    3 Topics
    |
    2 Quizzes



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Lesson 7, Topic 1
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Commodity Exchange (Definition & Classification of Commodity)

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Meaning of Commodity

Commodity is a material in a specified quantity which has universally standardized quality and price for exchange purpose. The commodities are materials of value which can be traded for their value at a particular time and at a pre-determined price. Commodity possesses price and quality which are based on global or universal supply and demand. Commodity is specifically applied to goods.

Classification of Commodities

(i) Soft Commodities: These are basically agricultural goods grown or reared for human consumption e.g. food crops, cash, and livestock. Cash crops are sold in foreign markets at a standardized price.

(ii) Hard Commodities: These are solid materials which are extracted by mining e.g. Iron, gold, zinc, silver copper, tin, etc.

(iii) Energy Commodities: Commodities of this nature are generated from certain sources for the purpose of domestic or industrial consumption as soon as they are produced because of their non-lasting nature.

Commodity Exchange (Definition)

Commodity Exchange is an organized process and procedure where buyers and sellers of tradable commodities come into contact to exchange such commodities at a pre-determined value (price) and standard.

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