COMMERCE/ BUSINESS STUDIESsoe20.pomgrammar.ac.pg/PDF/GR9 EconBusS COMM PPT1 MIKUPU… · unit 9.1 satisfying needs and wants topic 1: introduction to commerce topic 2: what is production?

GRADE 9 COMMERCE/ BUSINESS STUDIES

20/04/2020 Prepared By MIKUPU 1

UNIT 9.1 SATISFYING NEEDS AND WANTS

TOPIC 1: INTRODUCTION TO COMMERCE

TOPIC 2: WHAT IS PRODUCTION?

TOPIC 3: ISSUES AFFECTING PRODUCTION

TOPIC 4: TRADE (TERM 2 week 1- week 2)

TOPIC 5: THE GOVERNMENT AND BUSINESS (week 3-4)

TOPIC 6: FINANCE AND FINANCIAL INSTITUTIONS (WEEK 5-6)


UNIT LEARNING OUTCOMES: By the end of these UNIT students can

be able to:

Demonstrate an understanding of the production and trading of goods and services that assist economic growth in their local area and communities.

Describe factors that contributes to, and enable, the production of goods and services for both producers and consumers.


LESSON LEARNING OUTCOMESBy the end of these LESSON students can be able to:

Define Trade

List the different types of trade

Explain the importance of trade

Differentiate between domestic trade and foreign trade


Timeframe and Instructions• This presentation is accompanied by 5 worksheets. • There are five sub topics under trade.• Your worksheet has the read section and practice questions for each of

the worksheets•Could you please ask your parents or guardians to help you complete it.

Allocate time each day to (2 hours in a day) to complete your work sheets.• You will have to read the notes before attempting the practice-activity

questions.•Please ask your parents to assist you in dropping off your answered

activity at the front office. Alternatively a scanned copy can be emailed to [email protected]

PREPARED BY RNAKO 5


WHAT IS TRADE?

WHY IS TRADE IMPORTANT?

HOW DOES TRADE TAKE PLACE?

HI THERE TRADE IS OUR

TOPICNOW TRY

ANSWER THESE QUESTIONS?

1

2

3


WHAT IS TRADE?WHY IS TRADE IMPORTANT?

HOW DOES TRADE TAKE PLACE?

Are your answers the same as these

answers?

1

2 3

Trade is the exchange of goods for other goods or for money.

Trade increases competition and lowers world prices, which provides benefits to consumers by raising the purchasing power of their own income

Between the buyer and the sellerIt can take place within the country and between one country and another country.

TRADE

•When people produce goods mainly for their own consumption, this is called SUBSISTENCE LIVING.

•Even in subsistence living, there are surplus, which means more goods are produced than there are needed by the people themselves.

•What did they do with the surplus goods? The situation of having surplus of goods resulted in TRADE taking place.


WHAT IS TRADE?

Trade is the exchange of goods for other goods or for money.

A person who had a surplus of vegetable, for example, could exchange some of these vegetables for fish with a person who had a surplus of fish.

When goods are traded one for another, or for services, this is called BARTER.

Barter was the main form of traditional trade and is still used today, especially in some rural areas


TRADE AND MONEY

MODERN MONEY HAS FOUR CHARACTERISTICS THAT MAKE IT EFFECTIVE IN TRADE.

oSCARCE- its not too easy to get

oDURABLE- it is strong enough to last

oPORTABLE- it is easy to carry around

oDIVISIBLE – it is able to be broken down into small units


TRADE AND MONEY

MONEY HAS FOUR MAIN FUNCTIONS:

MEDIUM OF EXCHANGE

A MEASURE OF VALUE

A STORE OF WEALTH

A MEANS OF SETTLING DEBTS


WORKSHEET 1

..\..\WORKSHEET\GRADE 9 COMMERCE\topic 4 Trade\GR9 EconBusS Com Worksheet1 MIKUPU.pdf


WORKSHEET 1 CLICK THE HYPERLINK GIVEN

ABOVE.

../../WORKSHEET/GRADE 9 COMMERCE/topic 4 Trade/GR9 EconBusS Com Worksheet1 MIKUPU.pdf

BUSINESS INVOLVED IN TRADING TODAY NEED ASSISTANCE IN THE FOLLOWING AREAS

1.COMMUNICATION

2.TRANSPORTATION

3.FINANCE


COMMUNICATION

The people involved in trading often do not meet face-to-face. They need to be able to contact each other somehow. Today, modern technology provides different means of communication. Telephones, faxes, email, the Internet and business letters allow businesses to negotiate trade. Because communication is so essential in assisting business and trade.


TRANSPORTATION

Goods often need to be moved long distances. There is a need for road, ports and airports. These are often built by the government. The government has a role in assisting businesses with such things as transportation and communication.


FINANCEFinance is making money available for someone to use, usually by lending it. Many businesses need to borrow money in order to operate. They may need money to buy goods, build a store or buy a truck. They usually borrow money from the bank. Banks themselves are businesses, and are part of tertiary production.


WORKSHEET 2




ABOVE.


THE SUPPLY OF MONEY

The bank of PNG is responsible for controlling how much Kina and Toea are used. It works closely with the commercial banks. The bank of PNG distributes notes and coins through the other banks. It also take back old money that has become dirty and torn. These is sent to the Central bank in return for new money. The old money is burnt.


THE SUPPLY OF MONEY

The government has passed a law to make Kina and Toea legal tender in the country. That means that people must accept kina and toea for the payment of goods and services.


THE SUPPLY OF MONEY

What would happen if the bank of Papua New Guinea increased the supply of money? Wouldn’t everyone be richer?


TRADE AND PRICES

The price of a good is how much money people are willing to pay for a good. Who decides the price? Many business people and consumers have seen how the prices of goods can change. The prices of primary products such as oil palm, coffee, tea, vanilla seem to go up and down. Even the price of betel nut is different in different parts of the country.


The marketWhen there are many buyers and sellers, deciding on prices is not as simple. Buyers and sellers come together in a market. If one seller asks at a high price, buyers will try to find a seller who will accept at a lower price. One buyer may refuse to buy or may agree to pay at that price. Seller will go against each other because they want to sell their goods. Buyers will also try to beat each other to get a particular good. When this happens, there is competition among the buyers, and among sellers.


World markets

Many countries in the world produce products such as coffee and cocoa. Business people in many other countries want to buy these products. There is competition among the producing countries, and there is competition among the consuming countries. No one can decide on the price by itself.

There is a world market for these goods and prices of primary products are worked out in this world market.


Supply and Demand

Prices change because of changes in either supply or demand or both.

SUPPLY: this refers to the amount or volume of some good that producersare willing and able to sell at a particular price.

THE LAW OF SUPPLY STATES that as price increase, producers will want toproduce more. The opposite happens as price fall. Producers will want toproduce less. Some will go out of business. However, if there is a problemin production, this can limit supply causing prices to increase.


Supply and Demand

Demand- This refers to the amount of a good people are willing and able to buy at a particular price. The law of demand states that as price increase, fewer people will be willing and able to buy a particular product. If consumers want more of a particular good, the price of that good will start to go up. This is because the competition among consumers.


WORKSHEET 3




ABOVE.


DOMESTIC TRADE

Trade that takes place within a country is referred to as domestic trade. Domestic trade includes all forms of production: Primary, Secondary and Tertiary.


WORKSHEET 4




ABOVE.


FOREIGN TRADE

Foreign Trade is the trade between PNG and other countries. It involves selling goods and services to other countries: exports, and the buying of goods and services from other countries: imports. This trade mainly takes place among businesses in this country with businesses in other countries.


Reason for importing Goods

•It does not produce those goods itself. E.g. there is no manufacturing of cars, trucks or electrical goods such as TV or computers in PNG.


Reasons for exporting

•This country also has the ability to produce many different types of commercial crops such as cocoa, coffee etc…


WORKSHEET 5




ABOVE.



There are 11 questions

Use your commerce (for MIKUPU) exercise book to answer these 11 questions

Excellent! now that you’ve read all your notes here are your instructions to

your activity questions

1

2

• Send scanned copies of the answers to your question both the Power Point Questions and the worksheets

• Reply to the email that was sent by the school to [email protected]

3

TOPIC 4 QUESTIONS (do these

1. What situation must exist before trade can take place?

2. In modern trade, why is communication so important?

3. In modern trade, what role does transportation play?

4. Why is finance important in modern trade?

5. How is money a medium of exchange?


6. What is meant by the term legal tender? Why is it important for a country to have its own legal tender?7. Who is responsible for controlling the money supply in Papua New Guinea?8. What would happen if the money supply in a country was to increase too quickly?9. Why is inflation bad for people?10. What is the law of supply and demand?11. How Has COVID 19 affect both domestic trade and foreign trade?


Source References

1. PNG FODE

2. T Tindall Business Studies for Melanesia: Grade 10; Pearson Education Australia

PREPARED BY MIKUPU 36

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COMMERCE/ BUSINESS STUDIESsoe20.pomgrammar.ac.pg/PDF/GR9 EconBusS COMM PPT1 MIKUPU… · unit 9.1 satisfying needs and wants topic 1: introduction to commerce topic 2: what is production?