The Roles of Trade Associations and Commercial Institutions in Facilitating the Growth and Success of Commerce among Nations

THE ROLES OF TRADE ASSOCIATIONS AND COMMERCIAL INSTITUTIONS IN FACILITATING THE GROWTH AND SUCCESS OF COMMERCE AMONG NATIONS

 

 

INTRODUCTION

Trade associations also known as business networks, industry trade bodies and chambers of commerce, play important roles as collectives, networks and advocates for the promotion of the private sector as a whole in Commonwealth countries. Whereas trade unions represent employees, trade associations represent employers.

Most member states of the Commonwealth have one leading trade association – often a national chamber of commerce or a confederation of industries – which represents the overall interests of the private sector and additionally numerous other organisations representing prominent sectors of the economy such as mining (for example the Chambers of Mines in Ghana and Namibia), agriculture (Manitoba Corn Growers Association in Canada), manufacturing (Jamaica Manufacturers’ Association), tourism (Fiji Hotel and Tourism Association) and financial services (Pakistan Banks’ Association).

The highest concentration of such organisations in the Commonwealth can be found in larger economies such as the UK, Canada and Australia where there is an association for almost every sector of the economy, big and small.

 

THE ROLES OF TRADE ASSOCIATIONS AND COMMERCIAL INSTITUTIONS IN FACILITATING THE GROWTH AND SUCCESS OF COMMERCE AMONG NATIONS

The Trade associations and commercial institutions are formed by the several business people to the target goal achievement and which is the non-commercial organization. Trade associations perform various roles for the welfare of trade and commerce among nations. It plays important role in development of industries in a country. The function of trade associations is as follows:

Protecting the interest of the Member- The most, important function of the Trade associations is to protect and maintain the member’s interest. With this view it advises the members in business related topics. It also puts that claims of the members to the Govt. and influence the Govt. in fulfilling them.

Development of trade, commerce and industry: All the functions of the trade associations result in the development of trade commerce and industry of its area. It helps the business in its area, provides advice to all with a view to developing the industrial sector of the country.

Removing odd or unfair competitions- The trade associations tries to eradicate any unequal or harmful competition among the member organizations and to keep the market of that product static. This ensures the existence of small factories and supports the large organizations.

Creating and Maintaining Favorable Business Environment– One of the important functions of the trade associations is to create a proper and friendly business environment and to maintain it. It discusses to the Govt and undertakes different structured steps to create a business environment.

Act as a Representative- The trade associations acts as a delegate or representative of its members. It places various claims to the Govt. It also acts as a representative in caw of foreign trade.

Government Advisor- The trade associations advises the Govt. in case of forming the industrial law, business law, import and export regulations, budget etc. It supplies important information about the business and commerce of the country for assistance.

Developing busies education and training- To make more skilled business persons and to create new entrepreneurs, the trade associations arranges various types of short term and long term courses and training programs. This helps in increasing the skill and introduction of new techniques.

Act as an arbitrator: The trade associations acts as an arbitrator in case of any conflict on problem between the members. This develops a harmony among the members.

Developing Foreign Trade: The trade associations attracts foreign investors by giving them various advises and counseling. It also accepts the foreign bill of exchange formed on its members.