Trade Association, Chambers of Commerce & Manufacturer Association

Trade Associations A trade association refers to a collective organization comprising traders or producers involved in the same line of business, with its primary objective being the protection and advocacy of the interests of its members and their respective enterprises. An illustrative example is the Motorcycle Operators Association of Lagos State (M.O.A.L.S).   Characteristics of […]

Trade Associations

A trade association refers to a collective organization comprising traders or producers involved in the same line of business, with its primary objective being the protection and advocacy of the interests of its members and their respective enterprises. An illustrative example is the Motorcycle Operators Association of Lagos State (M.O.A.L.S).

 

Characteristics of Trade Associations:

  1. Voluntary membership
  2. Regional focus
  3. Core objective of protecting members’ interests
  4. Financial sustenance through members’ subscriptions

 

Functions of Trade Associations:

  1. Providing financial and moral assistance to needy members
  2. Ensuring uniformity in trade operations
  3. Supplying information, including trade, technical, and credit details
  4. Resolving disputes among members
  5. Educating members about trade-related developments
  6. Establishing minimum prices for goods/services
  7. Conducting research for the benefit of members
  8. Maintaining high standards in the quality of goods/services
  9. Regulating members’ activities and upholding professional ethics
  10. Safeguarding and advancing common interests
  11. Serving as trade referees, especially in local transactions
  12. Engaging with the government on policies affecting trade as pressure groups

 

Disadvantages of Trade Associations:

  1. Potential restriction of entry into the trade
  2. Manipulating the supply of goods to create artificial scarcity and influence prices
  3. Possibility of holding the community hostage, leading to crises (e.g., transporters)

 

Chambers of Commerce

A chamber of commerce is a voluntary alliance of businessmen, tradesmen, and entrepreneurs from diverse commercial sectors in a specific locality, city, or country. Its purpose is to promote trade, commerce, industry, agriculture, and mining, as seen in entities like the Lagos Chamber of Commerce, Industry, Mines, and Agriculture (LCCIMA).

 

Chamber of Commerce Functions:

  1. Organizing trade fairs and exhibitions
  2. Promoting both local and foreign trade
  3. Collaborating with other chambers of commerce
  4. Collecting and disseminating information to members and the public
  5. Settling disputes among members
  6. Advising the government on trade matters
  7. Issuing certificates of origin
  8. Acting as pressure groups
  9. Overseeing the administration of government laws
  10. Educating members through seminars and conferences

 

Manufacturer Association

A manufacturer association is a coalition of producers formed for the mutual economic and trade benefits of its members.

 

Aims and Functions of Manufacturer Associations:

  1. Promoting both local and foreign trade
  2. Acting as a pressure group
  3. Attracting foreign investors
  4. Ensuring the production of standard goods
  5. Promoting the export of manufactured goods

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