WAEC Commerce 2016 Theory question 101

Theory question 101

Introduction to Commerce

Commerce 2 (theory)
Explain five ways in which commerce is important in the life of a nation.

Show the model answer
Model answer

Any five, explained: links producers and consumers (distribution); raises the standard of living by making varied goods available; creates employment in trade, banking, transport, insurance etc.; encourages production and specialisation by widening markets; earns foreign exchange through foreign trade; provides government revenue through taxes and duties; promotes international understanding and co-operation; encourages savings and investment through banks and the stock exchange; aids development of infrastructure (transport, communication).

Explanation

Each point should say how the nation benefits.