What is home trade? The definition of home trade is basic. So can simply define home trade as a type of trade which has to do with local in internal buying of goods and services within a country
Definition of home trade
Home trade is a branch of trade consists of or comprises of wholesale and retail trade. Wholesaling and retailing. Home trade is the buying and selling of goods and services within a geographical area or a nation.
Home trade can also be called domestic or internal trade. This type of trade is the power of any economy as it helps to distribute goods and service within the nation to where they are needed by consumers after production
The mechanisms of home trade
Ever wondered why we teach home trad or probably trade in general in school? Well the truth is if a country wants to transform its economy, they have to take serious their internal trade. There are two major channels or mechanism for marketig within a nation or country. They are Wholesaling and Retailing in other words known as wholesale and retail trade. Having understood the two mechanisms of home trade lets look at how they function and helps to boost economic growth of a people.
How does wholesale trade as part of home trade impacts a nation’s economy
The wholesale trade as a branch of home market if well funded can seriously improve the economy of any nation. Probably you are asking how can an ordinary wholesale trade affect the GDP of any nation, you are right in that we already defined trade as just buying and selling of goods and services. There are so many ways which wholesale can raise a nation’s internal growth which I have analyzed below
- The wholesaler is particularly involved buying finished goods from manufacturers and store them for future purposes
- The wholesaler helps in the operation of warehousing. This aspect of home is key to the success of any nation as it create room for more production of goods to take place.
- For most producers to run efficiently, they will need consistent funding and since accessing funds or loan from commercial banks the wholesaler easily can order for goods in advance by paying upfront thereby releasing much needed funds for the manufacturer to produce without any interruption.
How the retailer can help improve the economy of any nation as part of home trade
A retailer which is mainly concerned with the buying of goods from the wholesaler to redistribute in small quantities to the final consumer is the important of home trading because they help to bring different types of goods from different manufacturer into a single place for easy access.
So here are examples of how retail trade helps to improve home in order to boost any economy.
- The retailer helps to provide credit facilities because they most often know their customers with great details. Most often they live on the same street with their customers
- As part of expanding home trades34 reach out, the retailers helps to stock different type of goods in one place therefore it becomes easier to access by final consumers
- They make access of goods in small quantities for low income earners and those with low purchasing power
- Help to break down the chain of production and commerce in bits by selling according as your money can buy
As much as foreign trade is important, the development of any economy is dependent on it’s home trade and mostly it’s retail aspect.
If you can check out our posts below you will find some interesting topics to compliment the subject of home trade. feel free to use our comment box or our search pox up there to get any topic of your choice in our site
49. FORAGE CROP AND PASTURE
50. FORAGE GRASSES
51. SILAGE
52. PASTURE
53. TYPES OF PASTURE
COMMON GRASSES AND LEGUMES
54. GRASSES
55. LEGUMES
Characteristics or features of private enterprises
- Private individuals provide the capital: Private individuals that owned the enterprises are the people to raise capital for the establishment of the enterprise
- Ownership belongs to private individuals: Private individuals, e.g. sole proprietorship or partnership are the ones that own the business enterprise
- Objective of business is to make profits: The purpose of setting up the business enterprise is to make profits for the owners of the enterprise
- Accountability is to the owners: The ions of the business enterprises are usually accounted for and submitted to the owners of the enterprise
- Owners borne the risk of the less: In the event of business failure t ’liquidation, the owners will have to bear entire risks associated with such failures.
- Owners manage the business themselves: The daily operations of a business enterprise is controlled and -managed by the owners of the enterprise.
(b) Public enterprises in: Public enterprises are the types of organisations which are owned, controlled and managed by the government, business organisations are owned by either the local, state or federal government and their major objective is to provide social services to the people. They are associated with such names as authority, corporation, boards and commissions. Examples of public enterprises are public corporations and companies owned by government such as the Power Holding Co-operation of Nigeria (P.H.C.N.), the Nigerian Ports Authority (N.P.A.), Nigerian Television Authority (N.TA.), Nigerian Railway Corporation (N.R.C.) and Nigerian Telecommunications Plc. (N.I.T.E.L.).
Characteristics or features of public enterprises
- Government provides the capital:
Government provides the necessary capital required to set up public enterprises.
- Ownership belongs to the government: Public enterprises are usually set up by Acts of legislation and the enteiprise belongs to the government.
- Objective is to provide social services: The major reason of setting up public enterprises is to provide social amenities and services to the people at reduced cost.
- Management is accountable to the government: The management of public enterprises is directly accountable to the government that set up the enterprise.
- Government and tax payer borne the risks: The risks associated with public enterprises are usually borne by the government and tax payers who provided the capital for setting up the enterprises.
- Board of directors manage the business: The public enterprise is managed by board of directors appointed by the government.
- Public enterprise is a legal entity: Public enterprise is a corporate body or a legal entity, meaning that it can sue and be sued in its own right.
