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Business and Market

Published by: BhumiRaj Timalsina

Published Date: 28 Jan 2022

Business and Market in Grade-7, Reference Note

Introduction

For the economic development of a country, business is very important. To generate employment and income and supply consumer goods and services are the major aspects of business.

Relation between Commerce and Industry

Exchange of goods and services in terms of money or goods is known as a trade or a commercial activity. Commerce and industry both are related and dependent on each other. Trade helps to create the market for an industry whereas the market is a place where the consumer comes to purchase goods and services. The process of buying and selling goods is called marketing.
 

Finding Business Opportunities and Collaborating

There are two sources of trading opportunities. They are domestic and international. In the domestic sector, the producers of the goods and services are the main sources. Some of the examples of domestic sectors are those industries which supply goods or services to wholesalers, traders, agents and departmental stores. It should be kept in mind that trade or business is never a one-man play. While conducting a business, healthy collaboration or partnership is very important. Honesty, punctuality, mutual understanding should be there in partnership.

Modernization and Innovation in Business

We are living in the modern era, an era of information and technology. Conducting the business and ways of doing trade are modern. Without modernization and innovation of business, the world cannot survive. The use of the modern technologies like phones, computers, social networks etc. has simplified the marketing of the products as well.
 

Determining Price of Goods and Services

In case of the industrial enterprise or trading business, determining the price of goods and services is a very important activity. Doing a business is very much different from social services because business performs an activity to earn the profit and aims on achieving a higher return. Determining the price of goods and services in business is a very important step for its survival.

Some of the basic things to be considered while determining the price are listed below:

  • There should be a proper calculation of investment cost and purchase cost to produce a certain quantity of goods or services.
  • Tax, fares involved in the production or transaction of goods and services should be calculated.
  • The amount of investment and tax should divide the total amount with the total quantity produced or purchased which will be the total cost price per unit product.
  • Add the expected profit margin per unit product to the cost price which will be the selling price of the product.
  • At the end, accommodate and fix exact selling price based on the demand level of the product in the market and ongoing price of similar products in the market.
     

Business Collaboration of Agro-based Products

Most of the agricultural products are perishable and highly risky to market. Most of the time, harvesting, safe packaging, safe transportation and quick marketing is very much important. Our country Nepal depends on the agricultural products.

The main crops of Nepal are rice, paddy, maize, wheat, etc. People are also involved in producing cash crops such as tobacco, sugarcane, herbs etc. The other part of agriculture is animal-based farming such as animal husbandry, cattle farming, dairy business as well as fishery, bee-keeping and poultry which have been popular businesses nowadays.

Agricultural products are sold in small quantities in the local market and they are sold in larger volumes to wholesalers. There are different steps from production to final consumption. There should be a partnership with the wholesaler and transport agencies in order to ensure that the product goes to the market in time. This type of partnership is beneficial to all the partners involved. Transportation sector helps the business for taking the goods from one point to another.

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