Functions Of Trade Associations | Meaning, Types & Aims

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Hello, welcome to this hall on The topic: FUNCTIONS OF TRADE ASSOCIATIONS

Table Of Contents

  1. Meaning of trade association
  2. Types of trade association
  3. Functions Of trade association
  4. Aims of trade association
  5. Objectives of Trade association.
  6. Examples
  7. Revision Questions.

The Meaning Of Trade Association

Trade Association is an Association of traders or producers engaged in the same line of trade, whose major aim is to project and safeguard the interest of their members as well as their businesses. It is a group of firms in the same trade.

Trade Association is regionally based to provide services for their members and to advance their interest. It is financed from the subscription paid by the members. Membership of traders Association is voluntary. Traders Association can be found in different towns, cities, etc.

Below we continue, I have also written an article on trade and types of trade in Commerce you can check back when done reading this article.

Some examples or Types of Trade Association include:

  • Garri sellers Association
  • Tailor’s Association
  • Yam sellers Association.
  • Idumota spare Part dealers Association
  • Association of butchers.
  • Taxi drivers Association.
  • World trade organization (WTO)
  • Manufacturers Association.
  • Organization of petroleum exporting countries. (OPEC)
  • Association of British Travel Agent.
  • National Union of Road transport workers. etc.

Aims and Objective of Trade Association

There are different aims and objective of these associations. But the major aims and objective of trade associations are mostly:

  1. To ensure that members provide good quality services
  2. To ensure that members charge uniform price
  3. To maintain professional ethics of their line of trade.
  4. Another aims of Trade Association is to supply members with information about developments in their line of trade.
  5. To create uniformity in the way their members deal with people.
  6. To promote trade in a particular line of business.
  7. Another aims of Trade Association is to act as pressure group in order to influence some government policies.
  8. To defend and advance the interest of members
  9. To assist members who are in need

Functions of Trade Associations

Now let’s look at the functions of Trade Association. These include the following:

  1. They disseminate information to members
  2. Another functions of trade Association is that they fixed prices for their services or products.
  3. They put political pressure on government for the interest of their members.
  4. They settle dispute among members.
  5. They provide credit facilities and assistance to members.
  6. They negotiate with other trade associations on collective basis.
  7. They draw up standard for the practice of their trade.
  8. They carry out research and publish the report for members use
  9. They educate members on trade activities etc.

Revision Questions

  1. (a) what is trade association? (b) State 5 functions of trade association.
  2. What are the aims and objectives of trade association?
  3. Mention at least 10 examples of trade association.
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