(a)(i) What is a trade association? (ii) Give two examples (b) Explain any five functions of a trade association.

Answer Details

(a)(i) What is a trade association?

A trade association is an organisation formed by firms or businessmen engaged in the same trade, industry or profession to protect and promote their common interests and to regulate the conduct of members.

(a)(ii) Two examples

• Manufacturers Association of Nigeria (MAN).
• Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

(Others include the Nigerian Bar Association and the Association of Nigerian Licensed Customs Agents.)

(b) Five functions of a trade association

• Protecting members' interests: it speaks with one voice and lobbies government on policies, taxes and legislation affecting the trade.
• Fixing standards and prices: it sets quality standards and may recommend prices to prevent harmful competition among members.
• Settling disputes: it arbitrates and settles disagreements between members or between members and their customers.
• Providing information and advice: it collects and supplies members with market information, statistics and technical or legal advice.
• Training and welfare: it organises seminars, workshops and training for members and promotes their general welfare.

Other functions include promoting research and representing members in negotiations with trade unions and other bodies.