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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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(a) Balance of Trade:  

It is the relationship between a country’s visible goods (Exports) and imports (goods) within a trading period or year. It could be favourable or unfavourable.

(i) Favourable Balance Of Trade: When a country’s exports of visible goods exceed her visible imports (physical/tangle imports), the trade is said to be favourable.

(ii) Unfavourable: When a country imports more goods than what is exported i.e. visible goods, the trade is not favourable.

Note: Only the total visible exports and imports are being considered when it comes to the balance of trade.

(b) Balance of Payments:

This has to do with the relationship between the total receipts in export and payments on imports of a country’s visible and invisible items (Physical or tangible goods and services. This can be favourable or unfavourable too.

(i) Favourable Balance of Payment: if a county’s total receipts from visible items exceed her total payments on visible and invisible items of import within a given period of trading.

(ii) Unfavourable Balance of Payment: it occurs when a country’s total receipts on exports of both visible and invisible imports within a given period of trading.

Remedy for Deficit/Adverse Balance of Payment

  1. The imposition of tariffs will reduce the importation of goods by increasing their prices.
  2. Devaluation of domestic currency.
  3. Establishment and promotion of import substitution industries
  4. Borrowing from financial institution e.g. IMF
  5. Increase in domestic production of goods
  6. Sales of foreign investment and assets
  7. Control of foreign exchange transaction

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