Theory question 101
Introduction to CommerceCommerce 2 (essay)
(a) The chart below gives the main divisions of Commerce, complete the chart by filling in the blank spaces labelled (i) to (viii).
(b) Explain the following, give one example of each:
(i) Primary production;
(ii) Secondary production;
(iii) Tertiary production.
Show the model answer
(a) (i) Trade; (ii) Foreign trade; (iii) Retail trade; (iv) Wholesale trade (iii and iv in either order); (v)–(viii) any four aids to trade: banking, insurance, transport, advertising, warehousing, communication, tourism.
(b)(i) Primary production – extracting raw materials from land, sea or air, e.g. farming, fishing, mining.
(ii) Secondary production – turning raw materials into finished goods or structures (manufacturing and construction), e.g. textile making, building.
(iii) Tertiary production – providing commercial and personal services, e.g. banking, teaching, nursing.
Commerce divides into trade (home and foreign) and aids to trade.