00:00 Good day students, I am Dr. Laura, your business studies teacher for today.

00:19 Our topic is trade.

00:22 For today's learning objectives, the students should be able to understand the concepts

00:28 and meaning of trade, describe the forms of trade.

00:34 Each student should be able to explain the services that enable easy trade, and clearly

00:41 understand the role of customs and exercise in foreign trade.

00:48 What is trade?

00:51 It is the fundamental concept that involves the buying and selling of goods in a market

00:58 place.

00:59 It is an expansion and exchange of services for a competition by the buyer.

01:08 It can also be seen as an action that takes place within an economy among producers and

01:15 consumers.

01:16 So, it involves buying and selling.

01:20 What is called trade?

01:21 When you go to the market, you buy a product, you give money in exchange for the product.

01:26 So trade is exchange of money from the buyer to the seller for a particular product.

01:36 Also within an economy, it is among producers and consumers.

01:42 So consumer is the final buyer.

01:45 The producer of the product, it could be T.

01:48 It could be even the BORVITA, the producer as giving us BORVITA in the markets.

01:53 What do we do?

01:54 We need to pay.

01:55 In exchange, that is trade.

01:58 What are the different types of trade?

02:01 One, it is own trade and two foreign trade.

02:08 What is own trade?

02:10 This is buying and selling between different geographical regions and locations of the

02:17 same country.

02:19 So, own trade is within the states.

02:24 For example, in our previous class, we learned about physical markets.

02:29 So, own trade can be from an umbrella to legal states.

02:34 It is not going out of Nigeria, so it is within Nigeria.

02:38 That is own trade.

02:40 It is also a level of coordination between traders in the states.

02:45 So, a trader in legal states can take its own product to all your states, the same Nigeria.

02:51 Another producer of cocoa can take products, this cocoa from all your states and go sell

02:58 it in Overy.

02:59 So, this is within state and this is also own trade.

03:02 It is not going out of Nigeria, but it is within states, in touch states.

03:07 So, it is from one state to another.

03:11 The exchange of good and services in every state, like we said previously, in legal states,

03:16 we can have traders of clothes, fabrics, different attires.

03:22 These traders can come together in one location and form a trade union.

03:26 So, it is within states and own trade is, why is it called own trade?

03:33 It is not outside the country.

03:35 Why is this called own trade?

03:37 Why is it?

03:38 Can it be done in such states?

03:39 That means, as a trader, I can take my goods to another state in legal states.

03:43 Maybe in Abuja.

03:44 I found out that Islamic people like to wear long dresses.

03:49 And I am a seller here, I am not making goods and business well.

03:53 So, I can take my dresses to Abuja.

03:57 In this case, I have a competitive edge over those that sell short dresses.

04:01 So, I can decide to sell my goods in Abuja, in order to have more productivity and to increase

04:08 profitability.

04:11 What is a foreign trade?

04:13 When you hear the word foreign, what comes to your mind?

04:15 Foreign is abroad, out of the country that you reside in, abroad, London, America, so trading

04:24 between another country within two countries.

04:27 So, foreign trade is no longer within states.

04:30 It is no longer legal to all your states.

04:32 It is no longer legal to your state to Abuja.

04:35 It is no longer legal to all your states.

04:39 Now foreign trade is outside Nigeria.

04:43 It is the buying and selling of goods or exchange of services between one country to another.

04:50 Exchange of goods.

04:51 So a trader that sells, for example, myths is residing in legal's Nigeria here.

04:57 He cannot carry myths to abroad, to go and sell.

05:01 So, when you look at foreign trade, these goods are no longer just domestic goods like tomato

05:08 or onions, but we are talking about things like shoes, bags, weapons, even school bags,

05:16 even pencils, they are producers of good pens from China.

05:20 This is called a foreign trade.

05:22 A Chinese man can decide to sell his or her pen to people in Lagos.

05:27 This is a foreign trade.

05:29 And also, school shoes.

05:31 There are some very good letters in Italy.

05:34 So an Italian man can decide to produce good shoes, good school shoes.

05:38 We used to remember this company called Batta.

05:42 They bring shoes from abroad to Nigeria.

05:44 This is a foreign trade.

05:46 In the case where they are bringing goods and products from another country to sell in Nigeria.

05:51 Some of the Nigerian traders also carry shoes or even bags, leather shoes or leather bags

05:57 to other countries for sale.

05:59 We have good letters from snake skin.

06:02 What do we do?

06:03 We take these raw materials and transport them abroad in order to make a finished product

06:09 and end product.

06:10 These are called foreign trade.

06:13 Although, they are limited boundaries on purchasing or selling of goods abroad while limited boundaries.

06:20 It is easier to get raw materials from Lagos to all your states, maximum two hours, but

06:27 they are limited boundaries to selling these same raw materials from Lagos to London for example.

06:32 You have to consider customs.

06:34 You have to consider immigration services.

06:36 You have to consider if your goods meet the requirements of the UK producers.

06:43 You have to consider the supply chain.

06:45 How is it going to get to UK?

06:47 How will these products go there in good shape?

06:51 How am I going to make money?

06:52 So they are limited boundaries to foreign trade.

06:55 You have to remember Goldman's regulations.

06:59 Although foreign trade is a global opportunity for exports and imports of goods, it increases

07:06 globalization.

07:07 In business globalization is where countries can exchange treats, can exchange like we

07:13 understood in our last class transaction liquidity, even foreign exchange.

07:19 For example, in the Nigeria stock exchange, they are trading liquidity with New York stock

07:24 exchange.

07:25 New York is in the United States of America.

07:27 So it's a global opportunity.

07:30 Also, product availability worldwide.

07:33 You can go to Amazon.

07:35 Some Amazon companies in the United States or even the UK, you can find the same product

07:41 that you prefer, the brand, if you like to wear next.

07:45 You find it in United Kingdom.

07:46 So this product are available overseas, which is a very good opportunity to find foreign

07:52 trade products.

07:53 So it gives us a chance to get those available products.

07:58 At the same time, it has its limitations because of regulatory policy from government officials.

08:08 So if government officials have strict regulatory policy, the products don't get them on time.

08:14 Or it goes through excessive paperwork.

08:17 Where those products have to go through immigration and also understanding if these products

08:22 meet the market requirements.

08:25 So it has its limitations, and the biggest limitation is the government regulatory policy

08:30 on foreign goods.

08:34 What are the important forms of trade?

08:38 Won't it increase its competition?

08:41 In this case, we do not have only one seller.

08:44 We have many sellers.

08:46 We have many producers and many manufacturers that offer us the opportunity to choose to

08:51 have a proactive attitude.

08:53 We can have even the attitude of choosing, I do not want that product, I need this.

08:59 So it increases competition because other producers can compete, and even with price availability.

09:07 So it is an added advantage.

09:10 What is another importance of having trade abroad?

09:15 For even among us, within Nigeria, we can have the same products in Lagos.

09:22 But because there is another seller, we can't decide to go to another location.

09:26 For example, you go to a machine, you find a product that is cheaper than the one you find

09:30 in terms of your show market.

09:32 So it increases competition among traders.

09:35 Secondly, lower prices.

09:37 Like we have learned in previous classes about negotiating for a product.

09:42 You can have five sellers on the same streets.

09:45 But because of the competitive edge, one has over the other.

09:48 You find the same product for another seller, reduced price.

09:52 So what do you do?

09:53 You go for the one that has reduction of prices.

09:56 Another important forms of trade is the beneficial that it gives to the consumer.

10:02 You go to the markets, you want a nice dress, and you find it.

10:06 It is a benefit to you because this is the way you want to look, the way you want to look

10:10 where you go to party, or maybe your friends causing or your friends or your cousins' wedding.

10:17 You want to look in a particular way and you already have this idea.

10:20 When you get to the market, you find a specific dress that you like.

10:24 So it is benefits and added value to the customer.

10:27 It also decreases monopoly.

10:29 You don't find only one seller in the market.

10:31 In this case, there are many sellers.

10:33 So you don't just find one person where there is a perfect competition, where you don't

10:37 have a choice but to buy the product.

10:39 In this case, we have many sellers, even the consumers have choices they can make.

10:46 Efficiency in the long run, efficiently traders have this mindset of, "I'm going to trade.

10:52 I need to sell.

10:53 I need to increase on my profitability."

10:55 Also, manufacturers have the idea from their own perspective, durable products.

10:59 They are introducing a quality product and what do they need?

11:03 They need profits.

11:04 They need money in exchange for this good that's been produced.

11:08 So because they also bear the cost of production, yes, it is risk if the consumers do not buy.

11:14 So it is efficiency in the longer.

11:16 In this case, the organizations have more efficiency.

11:20 They can pay their workers, they can pay their staffs, they can even improve on their image.

11:25 They can even improve on their infrastructure and to build their business in the long term.

11:30 So it tells the sellers when it comes to profitability and more production, it is efficient.

11:36 From the perspective of this buyer, it is also efficient because there is an opportunity

11:42 to go to a place where they can trade for goods in exchange of money.

11:48 What are the aids to trade?

11:50 We have different aids to trade.

11:52 What are the ways where trades can be easy and where traders can facilitate and make life

11:58 more better for them?

12:00 One, banking.

12:02 We will see these in details in our next slide.

12:06 Our condense, advertising, communication, transport, tourism, warehousing and commerce,

12:17 banking.

12:18 We are all aware of this concept banking.

12:23 We all know what the bank is.

12:25 GT bank, there are several banks.

12:28 What is banking?

12:30 In trade, it is an activity of accepting deposit from customers.

12:35 Clients, sellers, manufacturers, producers and agreements in order to save guide money owned

12:43 by organizations or even individuals.

12:47 It is also lending us money to entities, corporations, big organizations, many organizations, even

12:55 mid-level organizations and entrepreneurs, start new startups so banking adds a lot of

13:01 growth to aid trade to make trade more easier in terms of facilitation.

13:07 So a bank lends money to organizations for conducting profits and making trade activities

13:13 better.

13:14 Banks grant loans to manufacturers to be able to make, to be able to produce a vehicle.

13:21 It costs money.

13:23 So banking managers, even executives, they loan to managers, they loan to big executives

13:30 in order to help them with productivity.

13:34 Banks provide financial loans and aids.

13:39 For example, scholarship.

13:40 If a student wants to go to school and the experience do not have enough money, a bank can

13:47 loan a student, they can help the student with scholarship, they can help students go even

13:52 abroad to study for their own desire to help students with education.

13:58 So banking aids trade.

14:01 Secondly, insurance, what is an insurance?

14:05 It is a compensation for specific costs or harm.

14:09 Insurance company pay back this helps trade.

14:12 It hits.

14:13 For example, you have a vehicle and you have insured it.

14:17 It should incase your vehicle has an accident, insurance company pays you back to be able

14:22 to have a good car or to make amendments or to make corrections.

14:27 So insurance helps, it really helps to hit trade.

14:32 In case of natural disasters, we have had of buildings collapse.

14:36 Insurance helps to pay back, to help build those constructions, even to help with losses.

14:43 Sometimes, you see people trapped in buildings.

14:47 Insurance aids trade.

14:48 Also, illness or death of a parent, some children, they lose their parents at a very young age.

14:56 Insurance helps to train these children.

14:59 It is also payments and premium for eventuality.

15:03 Nobody pays for anything but but for natural disasters or deaths or accidents, insurance

15:08 is a very good way to help compensate the people that have been prone to these losses.

15:16 Advertising.

15:17 It is the public announcement to influence a target group.

15:21 It hits trade.

15:23 When a company wants the buyers to purchase East or East, their products, what do they do?

15:30 They go to advertising company.

15:32 They pay advertisers to help them.

15:35 For example, on the television, when you are watching your maybe movies, you see sometimes

15:41 they advertise a product.

15:42 For example, Margarine, what do they do?

15:44 They want to buy.

15:45 So they have a target group.

15:46 They know that young children like to eat bread with butter.

15:50 So they try to make the advertisements when the children are watching those movies.

15:56 So that you can tell your parents to buy that butter for you.

15:59 So they have a target group and they go to that target group through advertising mediums.

16:05 It is also a means of communication with users of the products or services.

16:12 Because they are trying to communicate to you that this brand is good for you.

16:15 For example, I like green tea.

16:17 When I see a very good brand, how do I need to see, I need the manufacturer to persuade

16:23 me that this brand is good.

16:26 This brand of green tea is actually good for the health.

16:29 So they are communicating to me that it helps to lower blood pressure.

16:32 It increases lifespan.

16:34 So they have communicated to me.

16:36 What do I need to do?

16:37 Then I buy.

16:38 So advertising it's trade.

16:40 It is also a form of persuasion.

16:44 The manufacturer, they try to go to advertisement company to advertise this product to persuade

16:50 the customers to buy this product from their company.

16:53 Also, it is a means of information.

16:57 They are trying to give us information on this product.

16:59 So advertisements, advertising it can be very informative.

17:03 Because they are telling you the detailed things that you do not even have time to read.

17:07 Sometimes we do not have time as customers to go through the money house or even description

17:12 on the products.

17:13 What do we need to do?

17:14 We just need to hear it from the advertisers, the information regarding the particular

17:18 products.

17:21 Communication, it is a trade.

17:23 It is the transfer of effective information from the sender to the recipient.

17:28 Who is the sender, the seller, the manufacturer of the products.

17:32 They are just telling you the recipient.

17:33 Who is the recipient?

17:34 The person who receives the goods, the customer.

17:37 So they are just telling you exactly what you need to hear.

17:39 So it can be very, very communicative.

17:42 It is clear, very correct, and it is a form of verbal or non-verbal.

17:48 So sometimes you notice that even when they are advertising a particular product, they

17:52 are used animals.

17:53 They do not even have to speak.

17:55 Sometimes they are used to communicate in trade.

17:59 They are just trying to persuade their target group.

18:04 Transportation.

18:05 Let's look at transport.

18:06 It has trade a lot.

18:09 This is a mode and system of caring people or goods.

18:13 For example, you want to buy a school bag from the United States of America.

18:19 You need transportation via airplane.

18:23 It can't be through DHL or UPS or FedEx.

18:27 You still need to get the school bag here in Lagos, Nigeria.

18:31 It has to come by flight or by ship.

18:34 But it does take time by ship boat transportation helps facilitate trade.

18:41 It makes it easier for the manufacturer to get the goods to the Osella.

18:45 It helps the Osella to get the goods to the retailer.

18:48 It even helps the retailer to get the goods to the final consumer.

18:53 Transpostation is very important in trade.

18:55 Without transport, the goods do not get to the market, please.

18:58 Through the supply chain distribution.

19:02 And also, from one location to another, like I have previously mentioned.

19:07 It can be through the aircraft, the ship, the vehicle.

19:10 So even in Lagos states, you want to get some goods to another state.

19:15 For example, Anambra.

19:17 You can use the GUO.

19:19 You can use the God is good motos.

19:21 It can be through a vehicle.

19:22 And if you want to take it from Nigeria to another country, then you use the aircraft or via ship.

19:27 So, for the shipping, it takes time and it also has a lot of risk.

19:32 You have to put that into the construction boat.

19:35 Transport helps facilitate trade in a very, very effective and efficient manner.

19:41 So, everything.

19:43 It helps each trade.

19:45 Organizations normally organize holidays for parents and their children, family members.

19:52 And this organization, they are called tourist organizations.

19:57 They just help advertise and tell their clients where to travel through the communicate.

20:02 And it makes even their operation easier.

20:05 Where they like to visit their places of interest, even for pleasure, sometimes even for business.

20:11 You need to go to an organization that will tell you exactly what you need in that country,

20:16 the currency that is spent.

20:19 And tourism is a very, very efficient and also very relevant when it comes to trade.

20:25 Some organizations normally provide information to tourists and communicate, then in better

20:29 way, what to expect, the shock or cultural backgrounds, what they need to understand, places

20:36 to visit.

20:37 So, tourism facilitates trade.

20:41 Where else in?

20:42 This is a place where producers manufacture store goods.

20:46 You must have been to some very cool showroom where they just displayed their vehicles.

20:52 These places are called where else is.

20:55 Even goods from abroad, they have to have a warehouse.

20:59 You see containers that are arrived via shipping, modes or even air crafts.

21:04 They have to have a warehouse where they will store all these goods.

21:09 Because there is no market that will take content everything at once.

21:13 So it is an act of storing products or goods for distribution purposes, owned based organization

21:20 business.

21:21 So it's like a business in your house where you just store goods.

21:24 So the warehouse is the larger business.

21:27 For products that you want to be sending to the retail, even retailers have warehouses.

21:32 Even Coca-Cola, when you go to their office, you will see that the place that they are making

21:36 the drinks dissolving is not the same place that they are storing them.

21:40 So each company, all companies, most companies have warehouses.

21:44 Even furniture people.

21:46 The people who make furniture, they have their warehouse.

21:48 Once they have made the furniture, they just put everything in their warehouse for showroom

21:52 and also for keeping against damages or rain or natural disasters.

21:58 When you go through their cart log and you pick what you want, then they go to their show

22:01 and bring it out for the customer.

22:05 It is like a garage designed to keep things, to keep products for safety.

22:11 Commerce, it is a conduct of trade between two people.

22:16 It has even more than two people and among agents.

22:20 So it is exchange of goods or services or value between a business organization.

22:25 So commerce is trade.

22:27 Trade is commerce.

22:28 So it can be between two people or more people.

22:31 It is exchange for something like we have previously lent.

22:34 So commerce is trade.

22:36 You cannot separate it interchangeably.

22:38 So it is just a trade between two or more people and among agents, exchange of goods

22:44 or services.

22:45 If services such as electronic, like you have problems with your electronic device, you

22:49 take it to an agent that can help you fix it.

22:52 This is considered as commerce.

22:55 So what are the rules of costum and exercise in foreign trade?

22:59 One, it is monitoring of international flows.

23:04 A costum is all food at the airports.

23:08 You find them at the borders.

23:10 This is to understand and monitor what comes in and what goes how.

23:16 This is their function.

23:18 Another rule is to record analysis of imported goods.

23:22 They want to understand what is coming in, how many things are coming into the country.

23:28 So this is an analysis on the basis of the government.

23:32 Another rule is the important monitoring of the warehouses for prohibited goods, goods

23:38 that the governments have prohibited from entering the nation.

23:42 So at the borders, even at the airports, they go through all the goods, the containers

23:46 to ensure that there are no prohibited goods.

23:48 So these are functions of a costum and exercise in tens of foreign trade.

23:55 Now, they also ensure that duty tax for governments have been paid before the imports are released.

24:01 The costums look at this and have seen it in the delivery notes.

24:06 They also check borders for contraband, what are contraband goods, illegal goods, some

24:11 illegal machines, weapons, drugs, those are illegal goods.

24:15 The costums ensure that illegal goods do not come into a specific country.

24:20 For example, cocaine, when you see costums at the airports or at the borders, they ensure

24:24 that all these goods do not have contraband.

24:28 So those are their functions in terms of foreign trade.

24:32 Controlling non-tax criminal activities at the borders, criminal activities are selling

24:37 off weapons that the governments do not have a license or give a license to the trader.

24:44 So the costum and exercise in foreign trade are very, very relevant.

24:48 When it comes to foreign trade, the costum officers most ensure that the seller or the

24:54 manufacturer has paid the tax for the governments.

24:59 What are the activities of this costum and exercise boat?

25:02 Their control in traditional or commercial exchange, like we have mentioned, collection

25:07 of levy, they ensure that all the manufacturers pay their tax and levy.

25:12 This they control.

25:14 And also the ensure that imports quota or limit do not exceed.

25:18 So there's a quota for each manufacturer, and they ensure that this quota have not been

25:21 exceeded.

25:22 Because sometimes, when even the manufacturers pay levy or tax, they still go ahead to add

25:28 more things.

25:29 And they exceed the quota that each country has given to them.

25:33 So the foreign and costums exercise boat ensures that each manufacturer does not exceed

25:39 the quota of the imported goods.

25:42 As we get to the end of today's lesson, in your own understanding, each student should

25:49 explain the ten-treat, least at least three importance of trade, identify the two forms

25:57 or types of trade, and state two important roles of costums and exercise.

26:05 As we get to the end of today's lesson, I am Dr. Solora.

26:09 Thank you for watching.

26:10 See you next time.