Commerce Teaching Module PDF
Commerce Teaching Module PDF
Ministry of Education
COMMERCE
TEACHING MODULE
FORM 1 - TERM 1
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Republic of Zambia
Ministry of Education
COMMERCE
TEACHING MODULE
FORM 1 -TERM 1
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© Curriculum Development Centre 2025
All rights reserved. No parts of this publication may be reproduced, stored in a retrieval system
or transmitted by electronic, mechanical, photocopying, recording or other means, without the
prior permission of the Curriculum Development Centre.
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Authors
Coordinators
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Table of Contents
© Curriculum Development Centre 2025 .................................................................................................... iii
Authors ......................................................................................................................................................... iv
Coordinators ................................................................................................................................................. iv
Preface ........................................................................................................................................................... x
Acknowledgement ........................................................................................................................................ xi
INTRODUCTION ............................................................................................................................................. 1
TOPIC: COMMERCE .........................................................................................Error! Bookmark not defined.
Introduction ...............................................................................................................................................2
General Competence: ............................................................................................................................2
Introduction to Commerce ........................................................................................................................2
Introduction ...........................................................................................................................................2
Specific Competence: Show understanding of the importance of Commerce. ....................................3
Key Terms .............................................................................................................................................. 3
Learning Activities: ................................................................................................................................ 3
Learning Activity 1 ............................................................................................................................. 3
Describing Commerce: (Trade and Aids to Trade) ..................................................................... 3
Methodology: ................................................................................................................................ 3
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips .................................................................................................................................. 4
Learning activity 2: ............................................................................................................................ 5
Discussing the importance of Commerce ..........................................................................................5
Methodology: ................................................................................................................................ 5
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 3: ............................................................................................................................ 6
Identifying career prospects in Commerce (Entrepreneur, Marketer, Economist…) ....................... 6
Methodology: ................................................................................................................................ 6
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Expected Standard The understanding of the importance of Commerce shown accordingly ............. 7
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Summary ....................................................................................................................................7
TOPIC: PRODUCTION ...................................................................................... Error! Bookmark not defined.
Introduction ............................................................................................................................................. 8
General Competence(s): ........................................................................................................................8
Sub-Topic 1- Stages of Production ............................................................................................................ 8
Introduction: ..........................................................................................................................................8
Specific Competence: Demonstrate knowledge of stages of production .............................................9
Key Terms .............................................................................................................................................. 9
Learning Activities ............................................................................................................................. 9
Learning Activity 1 Explaining production .........................................................................................9
Methodology: ................................................................................................................................ 9
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 2: Describing needs and wants ............................................................................ 10
Methodology: .............................................................................................................................. 10
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tip .................................................................................................................................. 11
Learning activity 3: .......................................................................................................................... 11
Methodology: .............................................................................................................................. 11
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tip .................................................................................................................................. 12
Methods of Production ..............................................................................................................12
Learning activity 4: Discussing the stages of production (primary, secondary and tertiary) ......... 13
Methodology: .............................................................................................................................. 13
Steps ............................................................................................................................................ 13
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 5: Researching on linkages in the stages of production ...................................... 14
Methodology ............................................................................................................................... 15
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Expected standard .......................................................................................................................15
SUMMARY ............................................................................................................................... 16
Sub Topic 3: Specialisation ..................................................................................................................... 16
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Introduction .........................................................................................................................................16
Specific Competence: Exhibit understanding of the importance of Specialisation to trade ..............16
Key words ............................................................................................................................................ 16
Learning Activities: .......................................................................................................................... 16
Learning activity 1: Explaining Specialisation ..................................................................................17
Methodology: .............................................................................................................................. 17
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 2: .......................................................................................................................... 18
Methodology: .............................................................................................................................. 18
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 3: Discussing various forms of Specialisation (nation, region, individual,
process…) .........................................................................................................................................19
Methodology: .............................................................................................................................. 19
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 4: .......................................................................................................................... 20
Methodology: .............................................................................................................................. 20
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 5: Explaining the linkage between Specialisation and Trade .............................. 21
Methodology: .............................................................................................................................. 21
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Expected Standard- The importance of Specialisation to trade exhibited accordingly ..............22
Summary ..................................................................................................................................22
The Topic highlighted on the following .....................................................Error! Bookmark not defined.
Sub Topic: Factors of Production ............................................................................................................ 22
Introduction: ........................................................................................................................................22
Specific Competences: Demonstrate knowledge on the use of factors of production ........................ 23
Key Terms ............................................................................................................................................ 23
Learning Activities ............................................................................................................................... 23
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Learning Activity 1: Explaining factors of production (Land, Capital, Enterprise, Labour,
Technology) ..................................................................................................................................... 23
Learning Activity 2: Discuss the rewards of factors of production ............................................. 23
Methodology ............................................................................................................................... 23
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning activity 3: Demonstrate the use of factors of production in productive activities .......... 25
Methodology ............................................................................................................................... 25
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Land (natural resources): a workshop building provides work space and a nearby forest for
the supply of wood. ..................................................................................................................... 25
Expected standard: Knowledge of stages of production demonstrated accordingly ................ 26
Specific competence: Apply technological factors of production in production processes ...............26
Learning Activities: .......................................................................................................................... 26
Learning Activity 1: Identifying Technological factors of production (information technology,
automation, machinery…) ...............................................................................................................26
Methodology ............................................................................................................................... 26
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips ................................................................................................................................ 27
Learning Activity 2: Researching on the benefits of technological factors of production ..............27
Methodology: .............................................................................................................................. 27
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning Activity 3: Demonstrating use of technological factors in production processes ............28
Methodology: .............................................................................................................................. 28
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips ................................................................................................................................ 29
Expected Standard - Technological factors of production applied accordingly .........................30
Summary ..................................................................................................................................30
Sub Topic: Production and the environment ...................................................................................... 31
Introduction .....................................................................................................................................31
Specific Competence: Practice environmental management strategies in production processes. ... 31
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Learning activities: .............................................................................................................................. 31
Key words: ........................................................................................................................................... 31
Learning Activity 1: Stating the effects of production on the environment .................................. 32
Methodology: .............................................................................................................................. 32
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning Activity 2: Investigating possible solutions to the environmental effects ...................... 33
Methodology: .............................................................................................................................. 33
Steps: ............................................................................................. Error! Bookmark not defined.
Content Tips: .............................................................................. Error! Bookmark not defined.
Learning Activity 3: Practising possible solutions to the effects of production on the
environment .................................................................................................................................... 34
Methodology: .............................................................................................................................. 34
Content Tips: .............................................................................. Error! Bookmark not defined.
Expected Standard- Environmental management strategies in production processes practiced
appropriately. .............................................................................................................................. 35
Summary ..................................................................................................................................36
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Preface
The Commerce Teaching Module has been developed in response to the introduction of the
Competence-Based Curriculum (CBC), a transformative initiative aimed at enhancing
education quality and relevance.
This teaching module is designed to support teachers in effectively delivering Commerce lessons
under the new curriculum. Its primary objectives are to; bridge the gap created by the absence of
approved textbooks and equip teachers with practical skills and assessments tailored to learners'
needs and levels
As the Ministry of Education, we acknowledge the challenges associated with transitioning to a
new curriculum. Consequently, this module reflects our commitment to providing teachers with
structured guidance, suggested activities, and formative and summative assessments aligned with
the CBC's objectives.
While this module serves as a foundational resource, we encourage teachers to supplement it
with their own research and innovations to address potential gaps during implementation. The
suggested activities and assessments are designed to foster practical and critical thinking skills in
learners, ensuring relevance and adaptability across diverse school contexts.
Teachers are encouraged to tailor these suggestions to their unique classroom dynamics and
explore alternative approaches when necessary. We hope this module will empower teachers to
navigate the new competence-based curriculum with confidence, inspiring and equipping
learners with essential competencies, knowledge, skills, and attitudes.
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Acknowledgement
The Commerce Teaching Module for Form one term one has been developed through a
consultative and participatory process. Teachers and lecturers from Colleges of Education were
accorded an opportunity to be part of the development of this teaching module. Other
stakeholders such as civil society organisations and cooperating partners also participated in one
way or the other. I would, therefore, like to express our profound gratitude to all for the financial
and technical input to the successful development of this teaching module.
Finally, I would like to say thank you and appreciate the commitment and hard work of the staff
at the Curriculum Development Centre in ensuring the successful and completion of the module
development process.
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INTRODUCTION
The Commerce Teaching Module for Form One Term One comprise of topics from the 2024
Syllabus. The content and activities have been sequenced to introduce the learners to the subject
and to set a firm groundwork for them to acquire the competences that set the foundation for the
subject and at the same time provide direction to the Business and Finance career path.
The suggested learning activities are designed in such a way that they promote cognitive and
technical skills of the learners. Teachers should therefore ensure that learners are actively
engaged in the learning activities as stipulated in the module for masterly of the competences.
Note: Teaching methodology and learning environment:
Learner centred methodologies and strategies are key to Competence Based Curriculum
Learning environment – for effective learning, it is important to state the learning environment
in which learning will take place. The following are the learning environments that can be used:
Natural Environment – which can be outdoors such field trip
Artificial Environment - which can be indoor (classroom) such as guest speakers
Technological Environment – use of virtual platforms such as videos
The learning Environment should be selected in relation to the teaching methodology.
The module provides:
Proposals of different learner centred teaching methodologies. However, you are free to
explore many other methodologies to suit your local environment as well as resources
available.
An example of a methodology with the strategy and the learning environment to illustrate
how the learning activity can be conducted in a competence-based Curriculum.
Content Tip: which consolidate and summarise the learners’ responses and the teacher’s
content. It emphasises on facts and principles being covered in the learning activities.
Assessment
Assess learners during lessons through observation and after the topic through class
exercises, home works and assignments
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TOPIC 1: COMMERCE
Introduction
Commerce is trade and aids to trade. It gives knowledge about the world of business and
economic activity that is a cornerstone of national development. Commerce plays a vital role in
the economy, as it enables businesses and individuals to acquire the goods and services they need
to survive and thrive. In addition, it creates employment, generates revenue and creates wealth.
Learners therefore, learn about trade processes and how aids to trade facilitate these processes
and at the same time recognizing these aids as industries that are part of trade and their linkages.
The topic has one subtopic and one competence with three (3) learning activities. The teacher is
expected to facilitate a learning process that allows learners to explore and discover concepts
under this topic on their own.
General Competence:
Analytical thinking
Critical thinking
Communication skills
Creative and Innovation
Problem solving
collaboration
Introduction to Commerce
Introduction
This topic introduces the subject to the learners, explaining how it links to real life and the world
of business. It spells out the concept of trade and how it is done, which is the centre of human
activity worldwide and enables a learner to explore the career prospects that this subject opens.
Commerce is therefore trade and aids to trade and is concerned with the distribution of goods and
services to satisfy human needs and wants. Whenever goods are produced, they are supposed to
be moved from the place of production to the place of consumption where consumers are. In
other words, this is called the chain of distribution of goods and services and is facilitated by
services such as Transport, Warehousing, Advertising, Banking, Insurance and Communication.
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Specific Competence: Show understanding of the importance of Commerce.
Key Terms
Commerce – trade and aids to trade.
Trade - buying and selling of goods and services.
Aids to trade - activities that help trade to take place.
Good - tangible product that is bought or sold.
Service – intangible product that is bought or sold.
Home trade- trade done within a country and is divided into retail and
wholesale trade.
Foreign trade- the buying and selling of goods and services between two
or more countries and is divided into imports and exports.
Learning Activities:
Methodology:
OR
Choose a suitable learner centred methodology (for example Class discussion, case
study)
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Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Commerce: Trade and Aids to Trade or all activities that help the distribution of
goods and services from the producer to the consumer.
Trade: buying and selling of goods and services with the aim of making profit.
Trade can be done within the country (home trade) and between or among
countries (foreign trade).
Home trade: trade done within a country and is divided into retail and wholesale
trade.
Retail trade: selling of goods in small quantities. The person who sells goods in
smaller quantities is called a retailer.
Wholesale: selling of goods in bulk (large quantities). The person who sells
goods in large quantities is called a wholesaler.
Foreign trade: trade between two or more countries and is divided into imports
and exports.
Exports: goods going out of the country while imports are the goods coming into
the country.
The purpose of commerce aims at organising the most efficient distribution of
goods and services to satisfy the human needs and wants
Aids to trade are systems which facilitate trade to take place refered to as
commercial services. They include all activities concerned with the distribution
of goods and services and raw materials or partly finished products at all stages
of production. The aids to trade are:
- Banking – provides finances for the customers who are in need of money
through loans and overdrafts and keep money for customers by accepting
deposits from sales. It also facilitates payments, through credit transfers,
standing orders, discounting bills of exchange, electronic fund transfers
and direct debit
- Insurance – mitigates risks in trade by providing compensation to those
that suffer financial losses as a result of fire, damage or risks insured
against. It also covers claims from third parties such as employers’
liability and public liability
- Advertising – allows businesses to find market for their goods. It
persuades potential customers to buy goods and services available on the
market thereby increasing the sales and profit.
- Warehousing – provides storage of finished goods awaiting demand or
orders from the customers since some goods are seasonal or raw materials
awaiting procession.
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- Transport – facilitates the movement of goods and workers from one
place to the other. This can be by road, rail, sea and air.
- Communication – enables contact between suppliers and customers. It
helps to settle queries or payments or any other business transaction to
take place through telephone, cellular phone, Electronic-mail, telex, fax,
internet, letter, data post.
Methodology:
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
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Provides nations with economic growth (Job creation, revenue generation),
International Trade (imports and exports of essential goods, global market access),
Improved living standards (access to goods and services, increased consumer
choice, improved health care and education) …
Provides global world with job creation and poverty reduction (employment
opportunities, poverty reduction, improved living standards), Innovation and
technological advancements (innovation, technological advancement, E-
Commerce)
Methodology:
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
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Marketer, Entrepreneur, Business manager, Project manager, Financial manager,
Business administer, Insurance broker/experts, Procurement/purchasing officer,
Production manager, Accountant, Trade Analyst, An Economist …
Assess learners during lessons through observation and after the topic through class exercises,
home works and assignments
Assessment
Class exercise
Home work
Assignment
1. Choose one career prospect in Commerce and explain how Commerce as a subject would
help you attain that.
2. With an aid of a diagram, explain the meaning of commerce.
SUMMARY
This topic covered Description of Commerce: (Trade and Aids to Trade), the importance of
Commerce (to an individual, nation and the world) and career prospects in Commerce
(Entrepreneur, Marketer, Economist…)
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TOPIC 2: PRODUCTION
Introduction
Production is the process by which goods and services are created to satisfy human wants and
needs. It has been a basis of economic development in many countries. While production has led
to unprecedented economic growth, improved living standards, and technological advancements,
it has also brought about severe environmental consequences that continue to affect our country
and the world at large today. Production includes industry, which is both primary (obtains raw
materials from nature), secondary industry (processes raw material into finished products),
commerce and services.
The advent of production introduced heavy machinery and advanced manufacturing processes
that to a great extent increased efficiency and output. Factories have become the centres of
economic activity. The production of goods and services has a significant impact on the
environment during the extraction, processing and transportation of raw materials as well as the
manufacturing and disposal of products.
The topic will look at the Stages of Production, Specialisation, Factors of Production and
Production and the Environment. It has five competences with nineteen learning activities. The
teacher is expected to facilitate a learning process that allows learners to explore and discover
concepts under this topic on their own.
General Competences:
Analytical thinking
collaboration
Communication skills
Creativity and Innovation
Critical thinking
Introduction:
The Stages of Production are the different levels at which goods and services are produced from
raw materials to final product. The three main Stages of Production are primary, secondary and
tertiary.
This topic will explore the stages of production, thereafter, describes what needs and wants are
and how these can be met in the modern society. The topic will further discuss the stages of
production and how they depend on each other.
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Specific Competence: Demonstrate knowledge of stages of production
Key Terms
Production: creation of goods and services that meets the needs and wants
of consumers.
Goods: tangible or things we can see, feel and touch (original, standard,
sub- standard and counterfeit)
Services: intangible or things we cannot see, feel or touch.
Consumer: a person who buys goods for own use or the end user
Primary production: stage at which raw materials are provided
Secondary production: (industry) stage at which raw materials are
converted into semi or finished product
Tertiary production: the distribution stage of goods and provision of
services
Learning Activities
Explaining production
Describing needs and wants
Discussing the methods of production (direct and indirect)
Discussing the Stages of production (Primary, Secondary and Tertiary)
Researching on linkages in the stages of production
Discussion
Steps:
1. Allow learners to discuss in pairs how shoes are made (processes).
2. Let them present the processes that take place before making shoes or clothes
(production).
3. Relate the learners’ responses to the three stages of production and offer
constructive feedback while acknowledging learners’ achievement (teacher and
learner dialogue or discuss)
OR
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Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Production is the provision of goods and services to satisfy human needs and
wants.
Production covers all activities which contribute to the satisfaction of consumers’
demand for goods and services or needs and wants.
Industry includes primary (obtains raw materials from nature) and secondary
(processes raw material into finished products) and Tertiary (provides service).
Direct service; provides personal and public services to individual citizens such as
education provided by the teachers/lecturers, health care provided by nurses and
doctors or any health provider, legal advice provided by the lawyers, security
provided by police officers/soldiers and entertainment provided by the artists.
Discussion
Steps:
1. Let every learner be a producer.
2. Ask the learners to individually write on a piece of paper a good or product they would
produce.
3. Learners to share their responses.
4. Facilitate the discussion by asking the learners why they chose the good or product to be
produced.
Help them to understand human needs and wants and that production is based on
consumer demand of goods and services.
or
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
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Content Tip:
Production is based on consumer demand for needs and wants
Needs
Items that satisfy basic requirements of man only in order to survive and maintain
personal wellbeing (water, food, shelter, clothes and air)
Wants
These refers to goods and services that people desire to have but are not necessary for
their survival or wellbeing.
They differ from one person to another depending on various factors.
These are the things that we need in order to improve the quality or standard of our life or
to live a more meaningful, enjoyable and luxurious life. We can do without them. For
example; car, television, aeroplane, refrigerator, etc.
All the things which we need in our day to day life in order to satisfy human needs and
wants are called goods and services.
Goods are the physical or the tangible things that we can see, touch, and weigh or
measure.
They are a key part of economic activity, including production, consumption and trade.
Examples of goods includes vehicles, furniture, clothes, electronic gadgets, artworks,
jewellery etc.
Services on the other hand refers to the work done by other people, they are intangible
(we cannot see them or touch them).
They are action efforts or performances provided by one part to another to satisfy a need
or want or expectation
Examples of services include education, medical treatment, entertainment/recreation,
security, financial services, transportation, tourism, consultancy and advisory services.
They play a vital role in many industries and economies around the world.
Methodology:
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2. Ask learners to bring out the key points from the case study.
or
1. Show the learners two charts one with a small backyard garden or a subsistence kind of
farming and another with a big farm.
2. Facilitate the discussion by asking questions which leads to the concept of direct and
indirect production.
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment suitable for the teaching activity in relation to the
teaching methodology chosen (Natural environment, Artificial environment,
Virtual environment)
Content Tip:
Methods of Production
Direct Production
This refers to the process of creating goods or services without involving anyone.
The producer is responsible for all aspects of the production process from raw material to
finished products.
In other words, this is the production of goods for one’s own use/consumption.
It is usually done on small scale/subsistence level without the need for exchange/trade.
It directly satisfies one’s needs and wants such as a farmer who grows only enough maize
or keeps enough live stock for his own consumption.
If people where to provide all that they need by themselves, they would be little or no
need for trade as they may be self-sufficient.
Indirect Production
This is the process of producing goods for the benefit of others or for sale.
It involves trading of what has been produced so as to obtain what one cannot produce or
does not have.
Therefore, it depends on trade and makes people to specialise in one field so as to sell
their value.
This is the most common type of production in the modern society, where few people
satisfy their needs directly by themselves.
People usually engage in one particular occupation which they are best suited and sell
their products or labour in exchange of the goods or services they need.
For example, a farmers sell their farm products to other people to obtain other products or
services they don’t produce.
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Learning activity 4: Discussing the stages of production (primary, secondary and
tertiary)
Steps
1. Pose a question: how maize is grown and turned into mealie meal to reach the final
consumer?
2. Allow learners to bring out their responses
3. Relate these responses to either primary production, secondary production and tertiary
production.
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment suitable for the teaching activity in relation to the
teaching methodology chosen (Natural environment, Artificial environment, Virtual
environment)
Content Tip:
Production whether direct or indirect can be placed into three stages. These are primary,
secondary and tertiary production.
Primary Production
This is the first stage of production.
It is concerned with the extraction of natural resources from nature or the ground.
These are either above or underground.
The term natural resources include: - the minerals underground, fish in the water, trees in
the forest, animals in the wild and fertile soil and good climate.
Primary Production includes:
- Mining: The extraction of minerals, metals and other geological resources
underground.
- Fisheries: In line with aquaculture.
- Forestry: Harvesting of timber and other forestry products in the forest.
- Agriculture: Faming, livestock and other agricultural activities.
Most of the outputs of the primary production are in raw or unusable form.
Generally, the products obtained at this stage have to go to the secondary to process them
in more useful goods.
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Farm products such as apples, water melons, oranges and guavas can be eaten straight
from the farm
Secondary Production
Second stage of production that converts raw materials into semi-finished or finished
product or goods.
It consists of manufacturing and construction industries
o Manufacturing Industries
- This is the transformation or turning of raw materials into useable
products such as the making of shoes, biscuits, vehicles, clothes, blankets,
television sets and radios.
- In some cases, the raw materials are turned into semi manufactured goods
in one factory and then sent to another factory to be finished into a better
and more complex product. For example, a steel industry makes steel and
sends it to the car-manufacturing factory to manufacture car parts before
they are assembled into a car.
o Construction
- This includes building of infrastructure such as roads, bridges, housing
units and other construction works.
- This process uses both products from the primary and secondary industries
to assemble or build a house, bridge or dams.
- The builder for example uses rocks extracted by quarrying, cement
extracted by mining, timbers extracted by forestry, steel, paint, roofing
sheets, window glasses and nails obtained from manufacturing and many
others to build a house.
Tertiary Production
This is the third and final stage of production.
It involves the provision of services that helps in the transfer of finished goods from the
factory to the consumer.
There are two services involved. The first one is the commercial services (aids to trade)
which involves storing of goods, transporting, advertising, insuring, providing finance
and selling/marketing them. The second one is the are direct services, which plays an
indirect role.
For instance, the services of the doctor, policemen, nurses, musicians, artists, lawyers,
architects/engineers and sportsmen may appear to be insignificant from the process of
production and distribution of goods, but they are not.
Doctors and nurses, for instance, make important contribution to production, by making
people health, strong and ready to work. They indirectly aid production, tourism;
hospitality, travel and other tourism related activities.
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Methodology
Research, Class discussion, QPN, group work
Steps:
1. Ask the leaners to investigate a situation where low production of goods or
where raw materials are not available at primary production in the production
process?
2. Allow learners to present their findings from their research.
3. Facilitate the discussion leading to the linkages in the stages of production.
4. Consolidate and summarise the discussion by giving correct explanations on how
low production of goods at primary stage can affect both secondary and tertiary
stages.
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment suitable for the teaching activity in relation to the
teaching methodology chosen (Natural environment, Artificial environment, Virtual
environment)
Content Tip:
Assessment
a) Class exercise
Explain production in relation to the activities practiced in your community
b) Home work
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Learners to find out about the things in life that they can do without (luxuries) and those
they cannot do without (necessities) in order to survive
c) Assignment
Research the linkages on the three stages of production on maize from the time it is
grown, up to the time it is converted into mealie meal and reaches the final consumer.
SUMMARY
Production takes place in three stages, from the raw materials to finished goods and services. All
the three stages play a vital role in the smooth flow of the production process.
Introduction
This is the process of focussing or concentrating on producing only one product by a company or
an individual. In other words, it is the concentration on a specific area of expertise or
activity/task or occupation or on a narrow range of work within a particular occupation by an
individual/region for which their ability or resources best suits them, such as teachers, doctors,
nurses, lawyers, engineers and farmers. It does not only apply to individuals but also to
countries/regions producing goods or services for which they are best suited for or for which
they have an advantage on, such as Zambia specialises in copper production, Botswana for beef
production and Angola in Petroleum products. In Zambia, regions like Eastern province
specialises in groundnut production, Southern and Central provinces in maize production and
Western in rice production. This allows division of labour to take place and leads to greater skill
and efficiency amongst workers and increased output.
Key words
Division of Labour: separation of work into specialized tasks to increase efficiency.
Expertise: Specialized knowledge or skills acquired through experience or training
Specialist: An individual with specialized skills or knowledge.
Generalist: An individual with broad non specialized knowledge or skills
Learning Activities:
Explaining Specialisation
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Exploring the drivers of Specialisation (Division of labour, Government Policies,
Technology…)
Discussing various forms of Specialisation (nation, region, individual, process…)
Researching on real life scenarios on the benefits and challenges of Specialisation
Explaining the linkage between Specialisation and Trade
Methodology:
1. Invite a resource person who has specialized or has a skill in a particular field to
speak about his/her experience.
2. Request learners to take notes of important points
3. Ask some learners to present their observations or key points from the guest
speaker’s presentation
4. Use responses from the learners to relate to the content tips.
OR
Choose a suitable learner centred methodology (for example Class discussion, role
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
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Learning activity 2: Exploring the drivers of Specialisation (Division of labour,
Government Policies, Technology…)
Methodology:
Choose a suitable learner centred methodology (for example Class discussion, role
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Drivers of Specialisation
Comparative advantage: means that an entity can produce a good or service more
efficiently than another which leads to increased production and lower costs, market
access allowing for trade and exploitation of these advantages, and resource availability
which can influence which goods a region or entity is best positioned to produce
efficiently. All contributing to the focus on producing a limited range of goods to
maximize productivity and gain economic benefits.
Division of Labour: Enables workers to focus on specific tasks leading to efficiency and
productivity. It requires that workers collaborate amongst themselves leading to skilled
and motivated work force.
Technology: Allows more efficient production methods such as computerization,
communication and Information Management.
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Government policies: can influence and encourage businesses to specialize in specific
industries or sectors, for example trade agreements and policies, subsidies and
regulations (tax breaks)
Methodology:
OR
Choose a suitable learner centred methodology (for example Class discussion, roleplay,
case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Specialization takes place at different levels depending on several factors. These factors
could be government policies, technological factors and the division of labour.
Specialisation can be done at individual, national or regional level:
Individual: specialization where an individual concentrate on
producing a single product or service.
This can be as a result of ones’ skills, expertise and efforts on a specific
area or profession.
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Leads to increased productivity, efficiency and success in that
particular field. For example, a teacher who specialises in teaching
commerce and Principles of Accounts, a doctor who specialises in
children’s health or hearts problem.
Nation: refers to different countries concentrating on producing
specific goods or services based on their unique resources skills and
comparative advantage. For example, a country like Zambia is
specialised in copper mining because it has copper as a natural resource.
Region: where a region specialises in producing a specific good
because of the various conditions in that region such as available raw
materials, climatic conditions … For example, the Middle East as a
region produces oil.
Methodology:
Research
Note: learners to be given the research activity before the actual day for the lesson.
Steps:
1. Let learners research on real life scenarios on the benefits and challenges of
Specialisation
2. Allow learners to present their research findings before the class.
3. Consolidate on the learners’ findings and address the misconceptions
OR
Choose a suitable learner centred methodology (for example Class discussion, role
play, case study, field trip)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
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benefits from trade and export opportunities as a result of competitive edge
Challenges
It can be boring doing the same type of work every day and that may lead to loss of
quality and low productivity.
leads to overdependence on one sector and may result in economic collapse should that
industry weakens.
Difficult for workers to switch careers or find employment especially in volatile markets
Methodology:
Discussion, QPN
Steps:
1. Ask learners to list 5 products which are produced in Zambia and products
which are imported.
2. Allow learners to present what they have written.
3. Facilitate the discussion why some products are imported instead of producing
them within.
4. Emphasise on the linkages of specialisation to trade by bringing out how
nations benefits from specialisation through trade for example, OPEC nations
exporting oil to non-oil producing nations
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Specialization is the practice of focusing on producing a specific good or service, while trade
is the exchange of goods and services between nations. Specialization and trade are closely
related because specialization is the basis for trade, and trade increases specialization.
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Specialization: Countries specialize in producing goods and services that they are best
at. This can be done by concentrating on their resources, such as time, money, and capital.
Trade: Countries trade their specialized goods and services with other countries for goods
and services they need. These drivers interact together to support each other, leading to
increased specialization and Trade.
Benefits: Specialisation and trade allow countries to increase their output, save resources,
and become more productive. Many countries, for example, specialise in producing the
goods and services that are native to their part of the world, and they trade them for other
goods and services. specialisation is thus the basis of global trade, as few countries have no
enough production capacity to be completely self-sustaining.
Expected Standard- The importance of Specialisation to trade exhibited accordingly
Assessment
Class exercise
1. Discuss Specialisation
2. Explore the drivers of specialisation (Division of labour, Government Policies, Technology…)
Home work
[Link] various forms of specialisation (nation, region, individual, process…)
[Link] the linkage between specialisation and trade.
Assignment 1.
In what ways does Zambia benefit from specialisation. Give examples where necessary.
SUMMARY
Introduction:
Factors of production are inputs used to produce goods and services. They play a crucial role in
the production of goods and services and economic development. Those who control the factors
of production often enjoy the greatest wealth in society. Generally, there are four factors of
production. These are land, capital, labour and enterprise. These depend on each other in the
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production of goods and services. Another additional factor and the fifth one is technology.
Technology has been because it improves efficiency and productivity.
Key Terms
Factors of production: are inputs used to produce goods and services
Reward: benefit of owning factors of production (rent, interest, profit, wage or salary)
Land: all natural resources including land itself
Capital: man made resources that initiate productive activities (money, machinery, raw
materials)
Enterprise: ability to organise resources to start and run a business
Labour: human effort both skilled and unskilled used to produce goods/services
Technology: application of scientific knowledge to improve production
Learning Activities
*NOTE: These two learning activities have been merged as they cannot be discussed in isolation
Methodology
Inquiry based learning and case based learning
Case study
You live in an area where there are enough natural resources/raw materials, customers, a lot of
unemployed people (both educated and uneducated), enough space which is not used by anyone.
You have been encouraged to start a business so that you can produce most of the goods and
services which are on demand in that area using the available resources, at a minimal cost, and
using the savings or other sources of funding.
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Steps:
1. Ask the learners to read through the case study.
2. Using the case study, ask the learners to list the resources they have to start up a business
in their community.
3. Learners to make presentations about their findings and the benefits
4. Consolidate and summarise the findings emphasizing on the factors of production and
their rewards.
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Capital
This includes financial resources, buildings, machinery and all man made assets required
to operate a business.
Capital is created by humans and can be in business for a long time.
The providers of capital are known as investors
The reward for capital is interest
Labour
This is human effort or energy used in the production of goods and services.
It can be skilled or unskilled labour.
Labour is limited in supply.
The providers of labour are called workers
The reward for labour is wages or salary
Land
This includes all kinds of natural resources found on earth and underground such as
buildings, minerals underground, and rocks of the crust, fish in the water, trees and all
other natural resources.
The providers of land are referred to as land owners
The reward for land is rent/rates
Enterprise
This is the ability to organise the other factors of production to start and run a business
For production to take place, someone must have the idea and the skill to organise, direct
and control the production process.
This decision involves risks and a special skill.
The provider of enterprise is an entrepreneur
The reward for enterprise is profit
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Technology
This is a facilitator of the factors of production.
It has a big impact on the business in terms of both updating existing products and
finding new ways of manufacturing products.
Technology benefits business as it allows them to produce higher quantities, makes
products more consistent and more cost effective.
Some of the rewards for technology are increased productivity, cost reduction, quality
improvement…
Methodology
Interactive learning (demonstration), role play
Steps:
1. Pose a question: How would the factors of production be used in the
manufacturing of furniture?
2. Split learners in groups
3. Ask the learners to demonstrate how each factor of production is used in the
manufacturing of furniture (role play)
4. Consolidate and summarise the findings emphasizing on the factors of
production and their rewards.
OR
Choose a suitable learner centred methodology (for example Class discussion, role-
play, case study)
Select the learning environment in relation to the teaching methodology – (Natural
environment (outside), Artificial environment (classroom), Virtual environment
(technological)
Content Tip:
Land (natural resources): a workshop building provides work space and a nearby forest for
the supply of wood.
Labour: Skilled and unskilled workers operate machinery, assembles furniture,
administrative staff may assign some people to clean the work shop
Capital: resources provided by the owners to buy Machinery (saws, drills and sanders),
Equipment and materials are used to make furniture.
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Entrepreneurship: The owner innovates designs, risk taking and management skills and
ensures high quality products.
Technology: Computer, software and tools used for designing enables efficient production
process of furniture
Assessment
Class Activity
1. Describe how the rewards for the factors of production are achieved.
Assignment
1. Which factors of production would you combine to produce a good of your choice?
Learning Activities:
Identifying technological factors of production (information technology, automation,
machinery…)
Researching on the benefits of technological factors of production
Demonstrating use of technological factors in production processes
Methodology
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4. Let each group present what they have written.
5. Relate what learners have presented to the ones identified in the module (Content
Tips).
OR
Choose a suitable learner centered methodology and select a suitable learning
environment (problem solving, experiential learning…)
Content Tip:
Renewable Energy Technologies: There are now various sources of energy used in the
production process such as solar panels and wind turbines that provide sustainable power
sources for production.
Information Technology (IT): Information Technology plays a key role in production.
Throughout the production process computer hardware, software, networks, and
telecommunications are used to improve production.
Artificial Intelligence (AI): Artificial Intelligence is nowadays heavily used to perform
tasks like problem-solving, decision-making, and analysis in production using computer
systems.
Advanced Manufacturing Technologies: there are now innovations that are used to
improve the manufacturing processes such as photocopying, scanning, sensors, 3
Dimension (3D) printing, Internet of things (IOT), and Computer Numerical Controls
(CNC) machining that improve manufacturing processes.
Automation: control systems, such as computers or robots, are now used to handle
different processes and machinery, reducing the need for human workers.
Machinery: there are also physical devices and equipment used in manufacturing and
other production processes, which improve productivity e.g. conveyor belts, branding
machines.
Methodology:
Discussion, research
Steps:
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2. Let them think and share their findings on the benefits of technological factors of
production.
3. Relate what learners have presented to the ones outlined in the module (Content Tip).
OR
Choose a suitable learner centred methodology (for example Class discussion,
role-play, case study)
Select the learning environment in relation to the teaching methodology –
(Natural environment (outside), Artificial environment (classroom), Virtual
environment (technological)
Content Tip:
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Steps:
OR
Content Tip:
Process: IT systems track stock levels in real-time, automatically records stock when
levels are low, and provide insights into purchasing trends.
Benefit: This ensures that the company maintains actual stock levels, reduces waste, and
meets customer demand efficiently.
2. Automation
Process: Robots perform repetitive tasks like welding, painting, and assembling car parts.
Benefit: This increases production speed, reduces human error and labour costs.
3. Machinery
Process: Machines mix ingredients, cook food, and package the final products.
Benefit: This improves the consistency and quality of the food products while speeding
up the production process.
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Process: AI analyzes data and browse history to suggest products that the customer is
likely to buy.
Benefit: This increases sales and improves customer satisfaction by providing a tailored
shopping experience.
Process: Designers create digital models, which are then printed as exact copies.
Benefit: This allows for rapid prototyping and testing, reducing the time and cost of
developing new products.
Process: Solar panels convert sunlight into electricity, which is used to run machinery
and lighting.
Benefit: This reduces energy costs and promotes sustainability in times of load shedding.
Assessment
SUMMARY
The factors of production are important resources needed in the production of goods and services.
These include land, capital, labour, enterprise and technology. The rewards of the factors of
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production are rent, interest, wages or salary and profit are motivational to individuals and
organisations to participate in economic activities. Technology as a factor of production plays an
important role in the production process ranging from automation, machinery, renewable energy,
artificial intelligence and information technology which have led to efficiency, quality and speed
of producing goods and services.
Introduction
Production can have negative effects on the environment. Technological factors of production
can worsen the impact if not well handled. It is therefore important to handle production
processes well to mitigate the negative effect. Management and other stake holders’
interventions can minimize the impact.
This topic enables learners to explore ways and strategies of minimizing the impact of
production on the environment.
Specific Competence: Practice environmental management strategies in production
processes.
Learning activities:
Key words:
Environment: is the external surroundings in which we live, work, and interact.
Technological factors: refer to the various technologies, tools and systems that are
used to design, develop and deliver products, services and processes
Environmental management strategies: are plans and actions taken to reduce the
negative impact of human activities on the environment.
Sustainability: ability to maintain or support a process, systems or activity over
time without depleting natural resources or causing harm to the environment.
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Learning Activity 1: Stating the effects of production on the environment
Methodology:
OR
Choose a suitable learner centred methodology (for example Class discussion,
role-play, case study)
Select the learning environment in relation to the teaching methodology –
(Natural environment (outside), Artificial environment (classroom), Virtual
environment (technological)
Content Tip:
Littering: is the act of throwing or depositing waste such as trash, garbage or debris (plastics,
paper, glass, metal) in a public place without permission. It harms the environment by
polluting the air, harming wildlife, contaminate the soil and contribute to climate change.
Air Pollution: Factories release large amounts of substances such as sulphur dioxide,
nitrogen oxides which contribute to air pollution. This can lead to respiratory problems, acid
rain, and contribute to climate change.
Climate Change: The burning of fuels for energy and industrial processes releases large
amounts of carbon dioxide and other greenhouse gases, driving global warming and climate
change.
Water Pollution: Industrial processes often discharge substances, including heavy metals
and chemicals into rivers, lakes and dams. This can harm aquatic life and contaminate
drinking water sources.
Soil/Land Degradation: The use of harmful chemicals and improper waste disposal can lead
to soil contamination, reducing its fertility and affecting crop production.
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Deforestation: To meet the demands for raw materials and space for factories, forests are
often cleared, leading to loss of different species of plant and animals and disruption of
ecosystems.
Resource Depletion: Over-extraction of natural resources such as minerals, fossil fuels, and
water can lead to their depletion, endangering future supplies.
Waste Generation: Industrial production generates large amounts of waste and can persist in
the environment for centuries, contributing to pollution.
Methodology:
OR
Choose a suitable learner centred methodology (for example Class discussion,
roleplay, case study)
Select the learning environment in relation to the teaching methodology –
(Natural environment (outside), Artificial environment (classroom), Virtual
environment (technological)
Content Tip:
Waste Management and Recycling: Improving waste management practices and promoting
recycling can reduce the amount of waste that ends up in disposal sites and reduce pollution
(3Rs: Reduce, reuse and recycle).
Reforestation/Tree planting; this could reduce the adverse effects of climate change
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Renewable Energy Sources: Shifting from electricity generated systems to renewable
energy sources such as solar, wind mills, and hydroelectric power that can reduce gas
emissions and reliance on non-renewable resources.
Adopting Cleaner Technologies: Implementing advanced technologies that produce fewer
pollutants and utilize resources more efficiently can significantly reduce environmental
impacts.
Sustainable Resource Management: ability to maintain resources (water, minerals, trees)
over a period of time without depletion or causing harm to the environment.
Regulation and Legislation: Governments can enforce strict environmental regulations and
provide incentives for businesses to adopt sustainable practices. This includes setting
emission limits and requiring environmental impact assessments.
Corporate Social Responsibility (CSR): Encouraging companies to adopt CSR practices
can lead to more environmentally conscious decisions, such as reducing pollution, good
waste management.
Public Awareness and Education: Educating the public about the environmental impacts of
production.
Eco-friendly Transportation: Promoting the use of eco-friendly transportation methods,
such as electric vehicles and public transport, can reduce emissions from transportation
related to industrial activities.
Methodology:
Experiential learning
Steps
1. Let learners practice the possible solutions on the effects of production on the
environment. E.g. picking litter and place it in designated places, community
clean up, planting trees, recycling and pollution control by not burning waste.
2. Facilitate the discussion by emphasising on the use of dustbins for dumping litter,
the three Rs and other solutions to avoid the effects of climate change.
OR
Choose a suitable learner centred methodology (for example Class discussion,
role-play, case study)
Select the learning environment in relation to the teaching methodology –
(Natural environment (outside), Artificial environment (classroom), Virtual
environment (technological)
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Content Tip:
Assessment
Class exercise
1. Demonstrate the need for factors of production.
2. Explain the effects of production on the environment
Homework
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1. Investigate how the factors of production depend on each other
2. Investigate possible solutions to the environmental effects on production
3. Describe possible solutions on the effects of production on the environment
Assignment
1. Describe how a manufacturing firm can implement environmental management
strategies that can be practiced in the production processes.
SUMMARY
Production can have negative effect on the environment and society. Some of these effects are;
air pollution, water pollution, soil/land degradation, deforestation, climate change, resource
depletion, waste generation and littering.
Although the environmental effects of production can be of a great concern to society, there are
solutions to these effects. They include adopting cleaner technologies, reforestation/tree planting,
renewable energy sources, waste management and recycling, sustainable resource management,
regulation and legislation, corporate social responsibility, public awareness and civic education.
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Bibliography
Corrad, H. L., and Oliphant, L., (1973), Elements of Commerce, Part 1, 11th Edn. London: Cassel
& Co. Ltd
Gartside, L. (1989), Commerce: A Guide to the Business World. London: Pitman Publishing
Matimba, A., Distinction in Commerce
Ronald, J. Ebert, and Ricky, W. Griffin (2017), Business Essentials, 11th Edn. Pearson Education
Ltd
Wokorachi, J.B. (1997), Commerce: A Complete Course
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