CONCEPT OF TRADE

Introduction

Trade and self-reliance are crucial aspects of economic development. 

What is Trade and self reliance?Trade is  the exchange of goods and services, while self-reliance emphasizes economic independence, where individuals, communities, and nations strive to meet their needs without excessive dependence on external forces. In Nigeria, indigenous trade, apprenticeship systems, and skill acquisition have historically played a significant role in fostering self-reliance and economic sustainability even during the pre- colonial times 

 Concept of Trade

Trade refers to the buying and selling of goods and services between individuals, communities, and nations. It is a fundamental economic activity that facilitates the exchange of surplus goods for those that are scarce.It requires the use of item for exchange.In earliest times goods were used.Then later legal tender in form of currency was used.

 Types of Trade

Trade can be classified into:

Domestic Trade – This is the trade that occurs within the borders of a country. It includes:

Wholesale trade: this is large-scale purchase and resale of goods.

Retail trade:  this is Selling goods in small quantities to consumers.

2. International Trade –This consist of exchange of goods and services across different countries and national borders, examples including:

a)Export trade: Selling goods to other countries.

b)Import trade: Buying goods from other countries into one’s own country.

c)Balance of Trade: This is the difference between exports and imports.When import is more than export inflation may occur in such economy.This is common in a consuming economy where local production is low.The Nigeria economy is gradually becoming a consuming economy where almost everything is imported.On the other hand where export is more than import,the economy will grow but there will be need for increase in production to avoid scarcity of basic goods for local consumption.When export equals import there is a balance of trade.

Reasons for international trades include 

•  Uneven distribution of natural resources 

• Climatic Conditions 

•Acquisition of special skills 

• Differences in Industrial development 

Trade Impediments - there are some impediments to foreign trade or traditional trade.These includes 

-Import /Export duties or tariffs ,quantitative restrictions and exchange controls 

Structure of Nigeria’s Trade 

Nigeria’s trade system can be divided into the following structures - 

a) Alimentary products e.g. sugar,salt, Wheat flour, milk and daries,Fish and seafoods

b) Drinks and Tobacco e.g,alcoholic drinks and cigarettes 

c)Textile and footwear e.g bags, cotton yarns,boots,wool,rayon materials 

d) Iron,steel and cement 

e) Road Vehicles 

f) crude oil products e.g petrol,diesel,kerosene 

g) Industrial machinery 

 Economic of Self-Reliance

What is Self-Reliance?

Self-reliance refers to the ability of an individual, community, or nation to meet its economic, social, and technological needs without excessive dependence on external support. It promotes independence, sustainable development, and national economic stability.There can be self reliance in a Nation when there are diversity in the economy and improvement in the development of local industries.

Importance of Self-Reliance

1. It reduces dependence on imports and encourages local production and consumption.

2. Self reliance helps to boosts employment opportunities by  encouraging entrepreneurship and industrialization.

3. It can promotes sustainable economic growth by facilitating development and  utilizing local resources.

4. It encourages innovation and skill development through the enhancement of technological advancement.

5. Self Reliance Improves national security.It Reduces economic vulnerabilities from foreign economies.

Strategies for Achieving Economic Self-Reliance

-Promotion of local industries and entrepreneurship.

-Encouragement of skill acquisition and vocational training.

-Development of indigenous technology.

-Effective resource management and industrialization.

-Encouragement of the indigenous apprenticeship system.