Syllabus-7100-Commerce IGCSE

Cambridge O Level Commerce
Syllabus code -7100
For the Exam Oct/Nov- 2018 on wards

Topic Amplification

UNIT-1 PRODUCTION
1.1 The chain of production
-define the term production
-show understanding of the production of goods and services to satisfy human wants and needs
1.2 Primary (extractive) industries, secondary (manufacturing and
construction) industries and tertiary activities (commercial services and direct services)
-describe these types of industries and activities with
examples
-explain how people working in primary industries,
secondary industries and tertiary activities are part of
production
-discuss the relative importance of each type of
industry within a country
1.3 Specialisation and division of labour
 -explain the terms specialisation and division of labour
-describe the different forms of specialisation by: country, region, town, fi rm, factory, individual
-discuss the advantages and disadvantages of division of labour to a manufacturer and a worker.
1.4 Commerce
-define the terms trade and commerce showing the differences between them
-discuss how distribution assists commercial activity
-explain the nature, purposes and importance of trade,
both at home and overseas
-discuss how advertising, communications, transport, warehousing, insurance, banking and finance help trade to function
-evaluate the extent to which businesses are involved
in trade and/or commerce
1.5 The relationship between industry, commerce and direct services
-discuss ways in which industry, commerce and direct services are inter-related and interdependent.

UNIT-2 RETAIL TRADE
2.1 The role of the retailer in the chain of distribution.
-identify functions of the retailer as the middleman between manufacturer and consumer
-evaluate possible responses to changes in customer requirements and expectations
2.2 Types of retailer.
-describe the characteristics of different types of retailer, including: large and small (hypermarkets, supermarkets, multiples, department stores, speciality shops, unit/independent retailers, street markets)
-discuss the advantages and disadvantages of each type of retailer.
2.3 Large-scale and small-scale retailing
-discuss the advantages and disadvantages of large-scale retailing
-discuss the effects of large-scale retailers on wholesalers, other retailers and consumers
-explain why the small-scale retailer often survives, including: personal service, opening hours, additional services provided
2.4 Selling techniques and methods and the implications of e-commerce
-discuss the importance, advantages and disadvantages of selling techniques, including: branding, own brands, logos, packaging, self-service, after-sales service, barcoding, Electronic Point of Sale (EPoS), direct mail, factory outlets, shopping centres and internet auctions.
-describe the use of computers to aid retailing
-describe characteristics of mail order, telesales, television shopping, online shopping (e-tailing) and discuss the advantages and disadvantages to retailers and consumers of these methods of selling
-evaluate the likely implications for retail outlets and consumers of the growth of online shopping and e-commerce
2.5 Trends in retailing
-describe trends in retailing, including: omnichannel retailing, self-service check-outs, development of loyalty programmes, virtual retailing, mobile retailing (m-commerce), shopping anywhere/anytime

UNIT-3 CONSUMER CREDIT
3.1 Use of credit Concept of credit.
-outline the concept of credit
-analyse reasons for the increased use of credit
-discuss the advantages and disadvantages of credit to the buyer and the seller.
3.2 Types of credit
        -3.2.1 Hire purchase
• identify main features
• discuss advantages and disadvantages to consumers and retailers
• explain how the finance of hire purchase operates compared with extended credit
       -3.2.2 Extended credit (deferred payments)
• identify main features
• discuss advantages and disadvantages to consumers and retailers
      -3.2.3 Store cards
• identify main features
• discuss advantages and disadvantages to consumers and retailers
      -3.2.4 Credit cards
• identify main features
• discuss advantages and disadvantages to consumers and retailers
      -3.2.5 Informal credit
• identify main features
• discuss advantages and disadvantages to consumers and retailers
3.3 Suitability of different types of credit
-evaluate the suitability of different methods of credit in given situations (including calculations of the cost associated with different methods of credit)

UNIT-4WHOLESALE TRADE
4.1 The role of the wholesaler in the chain of distribution
-explain different patterns of distribution and evaluate their use in given situations
-analyse trends in wholesaling: forces making for the elimination and the survival of the independent wholesaler
4.2 Functions and services of the wholesaler
• describe functions and services provided by the
wholesaler
• evaluate the importance of the wholesaler to the manufacturer and retailer
4.3 Intermediaries
• evaluate the role of agents (including brokers and factors) and export merchants in international trade.

UNIT-5 DOCUMENTS OF TRADE
5.1 Documents of home trade
• identify and interpret key information and explain the purposes of documents used in home trade, including: enquiry, quotation, price list, order, invoice, advice note, delivery note, credit note, statement of account,
receipt
5.2 Terms of payment
• define the terms cash discount, trade discount and mark-up
• calculate cash discount, trade discount and mark-up and evaluate their use in given situations (including
calculations)

UNIT-6 INTERNATIONAL TRADE
6.1 The importance of
international trade
• define the term global market
• explain the benefits of international trade to a country
• define imports, exports, visible and invisible trade
• apply these terms to given products or services
• examine the interdependence of countries within the global market
6.2 Balance of Trade and Balance of Payments
• differentiate between Balance of Trade and Balance of Payments
• calculate and interpret statistics relating to international trade, including Balance of Trade and Balance of
Payments from given figures
• explain how commercial activities may affect the Balance of Trade/Balance of Payments
6.3 Customs authorities
• describe the main functions of customs authorities, including: collection of duties, collection of trade statistics, enforcement of trade restrictions, supervision of bonded warehouses
• explain how the work of customs authorities affects trade
6.4 Free trade, trading blocs and protectionism
• describe free trade
• describe the main features and aims of a trading bloc
• discuss the advantages and disadvantages of joining a trading bloc, e.g. ASEAN, European Union, SADC
• evaluate the importance of free ports in international trade
• explain how restrictions on trade are applied, including: licences, tariffs, quotas, embargoes and their possible effects on commercial activities
6.5 Difficulties faced by exporters and importers
• describe the main diffi culties, including: distance, language, methods of payment, documentation, transport, different customs, non-payment, currencies, exchange rates, duties, competition.

UNIT-7 ADVERTISING
7.1 The role of advertising
• show understanding of the purposes of advertising
• describe the types of advertising: informative, persuasive, collective (generic) and competitive and explain when they would be used
• discuss the advantages, dangers and criticisms of advertising when selling goods and services
7.2 Media
• identify the main forms of advertising media, including: television, radio, internet, cinema, newspapers (local and national), magazines, trade journals, trade fairs and shows, leafl ets/fl yers, packaging, direct mail, sponsorship, catalogues/brochures, digital billboards,
transport vehicles, displays – point of sale and window, neon lights, signs
• discuss the advantages and disadvantages of the main forms of advertising media
• evaluate the factors affecting choice of medium in given situations
7.3 Methods of appeal (devices)
• explain methods of appeal (devices), including: colour, emotions, ambition, famous people, music
• select methods of appeal in given situations
7.4 Sales promotion
• distinguish between advertising and sales promotion and explain why businesses use sales promotions
• describe methods of promotion, including: point of sale, offers, sponsorship, displays, competitions, coupons, sales periods, loss leaders
• evaluate the factors affecting choice of sales promotion methods in given situations
7.5 Trends in advertising
• describe trends, including: digital billboards, product placement, importance of internet advertising, mobile phone advertising, use of social media, digital video, etc.

UNIT-8 COMMUNICATIONS 
 8.1 Importance of communications in trade and the global market
• show understanding of the importance of communications in trade and the global market
• evaluate the need for rapid and accurate communication in trade and in the global market
8.2 Methods of communications, internal and external
• describe methods of communication, including: oral, written, telephonic, electronic (including: mobile phones, internet, intranet, email, teleconferencing, videoconferencing) and explain how each might be used in a given situation
• discuss factors affecting choice of method in given situations
8.3 Postal services
• describe postal services
• explain in what circumstances different postal services might be used
8.4 Trends in communication
• identify trends and developments in communication, including: computer hardware (tablets, smartphones, in-touch interfaces), use of social media, application stores (app stores) and importance of the mobile phone as a multi-functional tool

UNIT-9 TRANSPORT
9.1 Transportation
• evaluate the importance of transportation in the chain of distribution
• describe the characteristics of different methods: road, rail, air, sea, waterways, pipeline
• describe different modes of transport used for road, rail, air and sea, including: passenger train, goods
train, ferry, tanker, bulk carrier, cruise liner, container ship, cargo liner, delivery vans, buses, shared taxis, passenger aircraft, freight planes
• evaluate the factors affecting choice of method in given situations
• evaluate the benefits to a business of having own transport
9.2 Containerisation
• identify main features
• discuss advantages and disadvantages
• discuss reasons for increased use
9.3 Ports and airports
• describe services offered at seaports and airports for the handling of goods and passengers
9.4 Transport documents
• identify and use the key information and explain the purposes of transport documents: delivery/ consignment note, bill of lading, air waybill (including calculations)
9.5 Developments and trends in transportation
• explain developments and trends in the handling of goods and passengers, including: growth of air freight, express road routes, changes in use of rail transport, high speed trains, mass rapid transport, importance of
logistics, increased use of freight forwarders, demands on transport from global market.

UNIT-10 WAREHOUSING
10.1 Role of warehousing
• describe warehousing functions
• evaluate the importance of warehousing to businesses and trade, including: links with seasonal production,
demand, protecting supply and price stability
10.2 Types of warehouse
• identify the main features of bonded, cold storage, cash and carry, manufacturers’ and retailers’
warehouses and large-scale retailers’ regional distribution centres
• evaluate the importance of each in either home or international trade

UNIT-11 INSURANCE
11.1 Purposes of insurance
• describe the purposes, including: risk reduction, compensation, financial protection, business confidence, investment
• evaluate the importance of pooling of risk
11.2 Business and personal risks
• identify and describe the main types of business and personal risk and explain why they are important
• distinguish between insurable and non-insurable risks
• explain why some risks are not insurable
11.3 Insurance principles
• explain the essential elements of insurance principles, including: indemnity (including contribution and subrogation), insurable interest, utmost good faith and explain how they are applied
• evaluate the importance of insurance principles when taking out insurance and making a claim in given situations (including calculations relating to insurance premiums and compensation payments)
11.4 Effecting insurance cover
• outline procedures, including calculating premiums
• identify the main documents of insurance, including: proposal form, cover note, policy and explain their purposes
• evaluate the role of an insurance broker
11.5 Statistical basis of insurance
• analyse factors influencing the level of insurance premium
• evaluate insurance quotations
11.6 Effecting a claim
• outline procedures, including claim form

UNIT-12 BANKING
12.1 Banking services
• distinguish between deposit/savings accounts and current/cheque accounts
• describe services and documents provided to personal and business customers, including: paying-in slip, bank statement, night safe, ATM services, internet banking, telephone banking
• explain when each service and document would be used
12.2 Means of payment for home and international trade activities
• identify the characteristics and purposes of means of payment in home and international trade, including: cash, cheques, credit transfers, standing orders (banker’s order), direct debits, debit cards, credit cards, electronic transfers, documentary credits (letters of credit), bank drafts
• evaluate factors affecting choice of method of payment in given situations
12.3 Trends in banking
• describe trends, including mobile and digital banking, the mobile wallet
• discuss the concept of the cashless society
• evaluate the implications of internet banking, including the closure of bank branches

UNIT-13 THE BUSINESS UNIT
13.1 Location of a business, including retail units
• evaluate factors to be considered, including: labour, markets, transport, power and raw materials,
competition, suppliers, communication, government influence in given situations
13.2 Public and private sectors
• distinguish between enterprises in the public and the private sector
• identify the characteristics of public sector enterprises
13.3 Main forms of business organisation in the private sector
• identify the main forms of business organisation, including: sole trader, partnership, limited company (private and public)
• describe their characteristics relating to size, ease of setting up, ownership, control, liability of owners (both
limited and unlimited), documents required, provision of capital, distribution of profits
• evaluate the appropriateness of different forms of ownership in given situations
13.4 Franchises
• describe the main characteristics of franchises
• discuss the advantages and disadvantages of franchises for particular businesses
13.5 Multinationals
• define multinational company
• explain reasons for the existence of multinationals in the global economy
• evaluate the importance of multinationals in the global economy
• evaluate the opportunities offered to, and conflicting interests of, multinational companies locating in individual countries

UNIT-14 FINANCE
14.1 Sources of finance
• distinguish between long-term and short-term finance
• discuss the main features, advantages and disadvantages of:
– long-term finance, e.g. shares (ordinary and preference), debentures, mortgages, loans, sale and leaseback
– short-term finance, e.g. overdraft, factoring, leasing, trade credit, hire purchase
• describe methods of self-financing, including: retained earnings (retained profits), sale of assets, savings
• evaluate the suitability of choice of finance (including self-financing) in given situations
14.2 Finance for commercial activity
• identify, define, calculate and examine the importance in commercial situations of capital (fixed capital),
working capital, assets and liabilities, sales turnover, rate of inventory turnover, gross profit and profit for the year (net profit)
14.3 Improving commercial performance
• explain methods of improving sales turnover, rate of inventory turnover, profit and working capital, including: reducing expenses, increasing mark-up, changing prices, improving marketing, introducing new products in given situations

15 CHANGING ENVIRONMENT OF COMMERCE 
15.1 Commercial activity and the external environment
• define the term environment of commerce
• identify and explain the external PEST (political, economic, social, technological and environmental) factors that affect commercial activities
15.2 Commercial and environmental effects of e-commerce
• describe the characteristics of an e-shop, including: use of website, wide range of goods, delivery dates, return option
• explain commercial effects, including: change in supply, such as retailers supplying directly from warehouses rather than from their stores, more communications (online orders), smaller packages leading to greater use of couriers and air transport, opening of new consumer markets such as China and India
• explain environmental effects, including: increased use of transport for deliveries, greater vehicle emissions,
less lighting needed in stores, greater use of electricity for use of computers, search for sustainable solutions for the movement of goods
15.3 Commerce and the environment
• identify negative impacts of commerce on the environment, including: exploitation of some countries’
natural resources, dangerous products being extensively advertised, retail developments spoiling the natural environment
• explain how businesses attempt to deal with environmental impacts, including: recycling, using less packaging, ethically-produced goods, environmentally friendly products
15.4 Consumer protection
• evaluate the growing importance of consumer protection in the global economy
• describe the actions buyers or sellers might take in given situations, including: making a complaint, dealing with faulty or poor quality goods or services