(a) The chart above gives the main divisions of Commerce, complete the chart by filling in the blank spaces labeled (i) to (viii). (b) Explain the following...

Answer Details

(a) Completing the divisions of Commerce chart

The chart divides Commerce into two great branches: Trade (the actual buying and selling of goods) and Aids to Trade (the services that make trade possible). On the diagram, Commerce is at the top, the left branch runs down through Home trade and a further blank, while the right branch is headed Aids to trade. Working from that structure, the blanks fill in as follows:

How the branches fit together:

• Trade (i) splits into Home trade (buying and selling within one country) and Foreign trade (ii) (buying and selling between countries, made up of import, export and entrepot trade).
• Home trade itself splits into Wholesale trade (iii) (buying in bulk from producers and selling in smaller quantities to retailers) and Retail trade (iv) (selling in small quantities directly to the final consumer).
• Aids to trade are the supporting services; besides Banking (v), Insurance (vi), Transportation (vii) and Warehousing (viii), other accepted answers include advertising and communication.

(b) Types of production, with one example each

(i) Primary production is the extraction of raw materials directly from nature (land, water and air). It is the first stage of production and provides the raw materials used by other stages.
Example: mining of coal (also farming, fishing, or lumbering).

(ii) Secondary production is the processing or converting of raw materials from primary production into semi-finished or finished goods. It covers manufacturing and construction.
Example: a factory turning cocoa beans into chocolate (also building of houses, or refining crude oil).

(iii) Tertiary production is the provision of services rather than physical goods. It is divided into commercial services (aids to trade such as banking and transport) and direct/personal services (such as teaching and nursing).
Example: the services of a banker (also a teacher, doctor, or transporter).