Theory question 110
Trade AssociationsCommerce 2 (answer any five questions)
(a) (i) What is a trade association? (ii) Give two examples.
(b) Explain any five functions of a trade association.
Show the model answer
(a)(i) A trade association is a voluntary body formed by firms in the same line of business (trade or industry) to protect and promote their common interests.
(ii) Any two: Manufacturers Association of Nigeria (MAN); Nigerian Insurers Association; Pharmaceutical Society of Nigeria, Motor Dealers Association, National Association of Nigerian Traders, Nigerian Employers' Consultative Association, Association of Master Bakers.
(b) Any five, explained: represents members in dealings with government and influences policy; fixes standards of quality and conduct for members; collects and shares information and research on the trade; settles disputes among members; trains members and their staff; negotiates with trade unions on wages and conditions; organises joint advertising and trade fairs; may fix common prices or terms of trade; protects members against unfair competition.
Define, give two real examples, then explain five functions.