Theory question 108
Trade AssociationsCommerce 2 (answer five questions)
(a) Explain each of the following: (i) Chamber of Commerce (ii) Trade Association
(b) Give any four functions each of a Chamber of Commerce and a Trade Association
Show the model answer
(a)(i) A chamber of commerce is a voluntary association of businessmen of all kinds (traders, manufacturers, bankers, etc.) in an area, formed to promote and protect their common business interests.
(ii) A trade association is a voluntary association of firms in the same line of business (e.g. tyre manufacturers) formed to protect their common interests.
(b) Chamber of commerce (any four): represents members' views to government; provides commercial information and publishes journals; organises trade fairs and exhibitions; issues certificates of origin; settles disputes by arbitration; promotes trade missions and foreign contacts; trains members.
Trade association (any four): fixes standards and quality; may fix prices/terms of trade; negotiates with trade unions; represents the trade to government; carries out research; shares information among members; settles disputes between members; advertises the trade.
Distinguish membership: all trades (chamber) vs one trade (association).