Students of IUL presenting on the commercial sector of Cameroon

1. INVESTING IN THE COMMERCIAL SECTOR, THE KEY TO MAKING CAMEROON AN
EMERGING ECONOMY IN THE YEAR 2035.
Written By:
▪ Biuetchop Rolins-Kevin
▪ Sonse Davina
▪ Atteh Fidelia
▪ Tabi Febe Kah
▪ Toube Christelle
▪ Noubissie Anita
▪ Moussima Moukoudi
▪ Njohjam Precious
▪ Nkeuwang Marie Reine
▪ Fanka Lariza
COURSE INSTRUCTOR: DATE WRITTEN:
DR. NGUEA DIPITA. 30-10-2023
REPUBLIC OF CAMEROON
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PEACE-WORK-FATHERLAND
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MINISTRY OF HIGHER EDUCATION
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UNIVERSITY INSTITUTE OF
LEADERS
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REPUBLIQUE DU CAMEROUN
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PAIX-TRAVAIL-PATRIE
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MINISTERE DE L’ENSEIGNEMENT
SUPERIEUR
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INSTITUT UNIVERSITIARE DES LEADERS
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ACADEMIC YEAR: 2023-2024

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DEDICATION:
We dedicate all my efforts of this project to GOD almighty for the grace he has been
given me. Then to my lovely parents and team members whose unwavering love, guidance and
support have encouraged me through this project.
We would also like to dedicate this work “The Commercial Sector” to our lovely
instructor DR. NGUEA DIPITA. We can never thank our instructor and parents enough for the
opportunities they have given and continue to give us.

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ACKNOWLEDGEMENT:
This piece wouldn’t have been materialized without the moral, financial and material
assistance from Tabi Febe kah, Biuetchop Rolins-Kevin, Atteh Fidelia, Toube Christelle, Noubissie
Anita, Moussima Moukoudi, Njohjam Precious, Nkeuwang Marie, Franka Lariza and Sonse
Davina, in other words my team members.
Also give special thanks to our beloved lecturer DR. NGUEA DIPITA, PHD holder in
investment engineering, CEO of 24business LTD and many more, for his able guidance and
unflinching support to ensuring that this project was written, studied and brought out in a form
of hand outs for others to learn from.
We would also like to extend our gratitude to the school IUL and its principal DR.
BONABONA THEOPHILE and vice Principal DR. HOFUE, for providing us with all the facilities and
good environment that were required for this project.

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PREFACE:
In our compilation we discuss both about experiences and actualities. After
sharing our expediencies and research among us, we realised that the commercial sector is
much more important than we thought. Which encouraged us that we could help others with
valuable knowledge about business and trade. The compilation is for those who want to know
more about commercial activities and how to be able to approach the world of business and
trade.
This study seeks to identify, compare, and differentiate the “Commercial sector”
as the major sector leading to development regardless of the other sectors in Cameroon. A
document which can easy the readers understanding and better educate them about the
commercial sector. A detail analysis of the Commercial sector of Cameroon will help understand
whether to or not to invest in this sector is more beneficial to the country.

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ABSTRACT:
The report first introduces the history of the various activities involved in the commercial
sector, examine the various activities involved throughout the years and how they have been
developing over the past years or decades. Enlightening on how the various activities
started/originated and how the evolvement of these activities has been taking place from
ancient times to present date. This is to help understanding the nature of the sector. The project
then analysis the actuality of the sector, which is the actual description of the sector and the
various activities involved in the country and their nature. This is to show how the sector has
been functioning and is functioning throughout time. Advantages of investing in the sector then
follow, outlining the importance of investing in this sector and how profitable it will be to both
the government and its citizens. The benefits that the commercial sector will bring to its citizens
will be outlined, followed by the benefits to the government of Cameroon. While case studies
are therefore included to better help in understanding and showing proves that investing in
such a sector (commercial sector) will not be a loss but rather a great interest to the country
and its citizens. So it is not much to say that this document verses us with the methods and
solutions that can be used to make Cameroon an emerging country in the future years through
an encouragement of investment towards the Commercial sector. This therefore makes the
work one of the most interesting and inspiring one towards a step to an emerging nation.

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RESUME:
It’s a document which can ease the readers understanding and better educate them
about the commercial sector. A detail analysis of the Commercial sector of Cameroon will help
understand whether to or not to invest in this sector. Enlightening on how the various activities
started/originated and how the evolvement of these activities has been taking place and its
benefits.

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TABLE OF CONTENTS
DEDICATION:...................................................................................................... I
ACKNOWLEDGEMENT:....................................................................................... II
PREFACE:.......................................................................................................... III
ABSTRACT: ....................................................................................................... IV
RESUME: ........................................................................................................... V
TABLE OF CONTENTS ........................................................................................ VI
CHAPTER ONE: ...................................................................................................1
INTRODUCTION TO THE COMMERCIAL SECTOR.....................................................1
HISTORY OF THE COMMERCIAL SECTOR.................................................................1
CHAPTER 2: ........................................................................................................5
COMMERCIAL ACTIVITIES IN CAMEROON ..............................................................5
CHAPTER 3: ........................................................................................................8
IMPORTANCE OF THE COMMERCIAL SECTOR OF CAMEROON...............................8
WHY THE GOVERNMENT SHOULD INVEST IN THE COMMERCIAL SECTOR:............8
CHAPTER 4: CASE STUDY:.................................................................................13
THE COMMERCIAL SECTOR OF UNITED STATES OF AMERICA (USA).......................................13
THE COMMERCIAL SECTOR OF CHINA.............................................................................17
PERSONAL OPINION ON THE COMMERCIAL SECTOR............................................22
GROUP LEADER: E-mail address:
Sonse Davina Le.doctorantnguea@gmail.com

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CHAPTER ONE:
INTRODUCTION TO THE COMMERCIAL SECTOR.
The commercial sector refers to the part of the economy that is involved in the buying
and selling of goods and services. It main activities encompasses mainly of home and
international trade. Which many other services help in growing the commercial sector. Such as:
banking and finance, real estate, transportation, insurance, advertisement and so on. These
industries or activities all have a very long history behind them, which we will briefly mention
below in this chapter.
HISTORY OF THE COMMERCIAL SECTOR
The history of the commercial sector can be traced back to ancient times (that is 1600BC
or even lesser) when trading activities were crucial for economic development. In ancient
civilizations, commercial activities played a vital role in facilitating trade between regions and
promoting economic growth. These early commercial activities involved bartering and the
exchange of goods and services for goods and services. As civilizations progressed, with the
arrival of commodity money like salt and cowries, commercial activities became easier to
carryout. Then later on the concept of paper money emerged, bank receipts and bank notes
making trade more efficient and enabling the growth of commercial activities. Bank notes and
receipts came about when the first forms of banks were created. The history of banks dates
back to ancient civilizations, where people used to deposit their valuable items with temples or
palaces for safekeeping. These institutions gradually evolved over time and developed into the
banks we know today .The oldest bank was created by the Medici family, where the Medici
family who were merchants and bankers, played a significant role in the development of
modern banking practices. The Medici bank, which was founded in 1397, was the first bank to
use double-entry bookkeeping and to issue letters of credit, which were important innovations
that allowed the bank to expand its operations and increase its reliability. Since notes were now
available and currency rates came about, commercial activities were taken to the international
level. That is trading with other countries.

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International trade began during the middle Ages as political thinkers and philosophers
began to examine the nature and function of the nation, trade with other countries became a
particular topic of their inquiry. A typical illustration of a mercantilist spirit is the English
Navigation Act of 1651, which reserved for the home country the right to trade with its colonies
and prohibited the import of goods of non-European origin unless transported in ships flying
the English flag. Then liberation of international trade came about when the English economist
Adam Smith (the father of economics), Wrote the famous book “The Wealth of Nations” in 1776
where in it he wrote the advantages of International trade. Then the establishment of the first
international trade routes which was the Silk Road, which connected Europe with Asia was
established. This led to the rise of merchant guilds and trading cities, such as Venice and Genoa,
which became important centers of commerce. In Cameroon, the Portuguese explorers led by
Fernando Pô were the first Europeans to arrive the coast of Cameroon. With the arrival of
Europeans, local chiefs developed more powers by signing agreements with these traders as
they served as middlemen between the traders and local tribesmen that had something to sell.
BARTERING SYSTEM

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Spanning from 4000 BC to the present day, the history of transportation is a fascinating
topic that can expand your understanding of transport and travel, and how it became what we
know today. The first form of transport was by domesticating animals and using them for
transport and trade. Capable of travelling longer distances and carrying heavier loads, the use of
animals made travel and trade easier and more efficient. This was the first significant
development in the history of transport. Different inventions like wheels continued to be
introduced till the 18th
century where industrial revolution came about. The first train with a
steam engine was invented in 1814. In the 1820s, the first modern trains were built using steam
locomotives, and trains became a common mode of transport for many. Then later on the first
car with a gas engine was made in 1886 by Carl Benz. From the, steam boats and ships were
created and in 1902, the Wright Brothers invented the world’s first controlled powered aircraft,
named it “Wright Flyer”.
FIRST CAR BY CARL BENZ
FIRST ENGINE TRAINS

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Insurance can be seen from 1750 B.C. with the Code of Hammurabi, which Babylonians
carved into a stone monument and several clay tablets. The code describes a form of bottomry,
whereby a ship’s cargo could be pledged in exchange for a loan. Repayment of the loan was
contingent on a successful voyage, and the debtor did not have to repay the loan if the ship was
lost at sea. Venture capitalists were guaranteed some of the returns from the goods the
colonists would produce or find in the Americas, after a voyage was secured by venture
capitalists, the merchants and ship owners went to Lloyd’s to hand over a copy of the ship’s
cargo manifest so the investors and underwriters who gathered there could read it, those who
were interested in taking on the risk signed at the bottom of the manifest beneath the figure
indicating the share of the cargo for which they were taking responsibility (hence,
underwriting).In 1666, the Great Fire of London destroyed around 13,200 homes and the
following year, property developer Nicholas Barbon began selling fire insurance as a personal
business, which was then established as a joint-stock company,” the Fire Office. This were
insurance companies began. Though insurance can be expensive, insurance has prevented
people and businesses from suffering financial loss and it has financially protected people
throughout time and that’s why it had to be mentioned.
The Industrial Revolution in the 18th
and 19th
centuries brought significant changes to the
commercial sector. Many methods of advertisement came about along with the development of
new technologies and transportation systems, such as steam engines and railways which
revolutionized trade and enabled the mass production and distribution of goods to be a lot
easier. This period saw the emergence of large-scale manufacturing industries and the growth
of global trade networks. In the 20th
century, advances in communication and transportation
technology such as; the internet and containerization, made it easier for businesses to operate
globally. The alleviation of trade policies (that is the free trade zone areas created) have also led
to increased international trade and investment across different countries. The commercial
sector has gone through so many changes, resulting in a great deal of evolution. Traditional
brick-and-mortar retailers were forced to embrace new technology in order to stay afloat as
companies like Alibaba, Amazon, eBay, and Etsy became household names. These companies
created a virtual marketplace for goods and services that consumers can easily access.

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CHAPTER 2:
Commercial activities have been one of the reasons for the growth and development of
so many countries today, both in Africa and other continents around the world. Today I will be
talking more about the commercial sector of Cameroon. Cameroon is a country in west-central
Africa, sharing a 1000miles border with Africa’s largest economy Nigeria to the west and north,
Chad to the northeast, the Central African Republic to the east, and Equatorial Guinea, Gabon,
the Republic of the Congo to the south and is the economic engine of the Economic and
Monetary Community of Central Africa (CEMAC). The economy of Cameroon has a unique mix
of natural resources and geography which makes it attractive to investment. The commercial
sector of Cameroon today is made up by so many services which aid it. Such as: banking,
transport, insurance, advertisement, etc.
COMMERCIAL ACTIVITIES IN CAMEROON
Banking and finance services has been one of the facilitators of people involved in the
commercial sector of Cameroon, as it currently provides services such as : safekeeping of their
valuables, providing finance for business men and carrying out financial transactions on their
behalf. The banking system of Cameroon is now made up of 11 commercial banks (of which the
6 largest are foreign banks holding about 50% of the sectors assets and deposits) and over 800
microfinance institutions. Current banks provide funds in various forms e.g. loans, overdraft,
cash credit, discounting of bills, etc. The loans or credit these banks and financial institutions
provide to business men or individuals help to fund the production and distribution of their
various products or services, before they get the money to pay back. The banking system of
Cameroon provides online services, opening of branches across the national territory to reduce
the stress of moving around and has also reduced the requirements of opening bank accounts
giving rooms for more account holders. But obtaining services such as credit/debit cards are
extremely difficult in Cameroon. Thus, limiting the services offered in Cameroon by these
financial institutions. Another service provided under the commercial sector of Cameroon is
insurance by insurance companies.

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Insurance plays a great role in the commercial sector since it helps to encourage and
ease the mind of the many people carrying out commercial or business activities in Cameroon.
This is because it covers most of their losses or accidents that occur while they carry out their
various activities in or out of the country. There are various insurance policies in Cameroon,
which covers both natural and artificial persons (that is firms). Some of the types of insurance
available in Cameroon are the marine, life and general insurance, which had helped a lot of
business people in Cameroon and even the government. Although insurance is not that well
used in Cameroon, due to the native beliefs of the people and the facts that very few people
understand or belief in insurance policies. But there are some insurance policies which have
been made compulsory to some citizens of Cameroon. Such as: holders of petroleum
authorization or contract, Motor vehicle insurance is also one of those compulsory insurance
which any individual which owns a car in Cameroon must subscribe for whether he/she wants
or not, since it’s being checked at every checkpoint of the national territory.
One of the most well-known commercial sector activities is business. This sector is like the
base form or intermediary of all the various services or activities carried out in the commercial
sector of Cameroon today. Businesses can be in the form of companies, unions under
agriculture or public health that have all followed a specific process to start. Example of the
businesses carried out in Cameroon is: cocoa, coffee, agribusiness, fashion and skin care, etc.
The Information and Communication Technology (ICT) is the fastest growing activity in
Cameroon, though internet penetration is still one of the lowest in Sub-Saharan Africa. The
communication industry of Cameroon is in the hands of four companies/ institutions, including
the state owned Cameroon Tele-communication (CAMTEL) company and also functions as the
market regulator in the communication industry of Cameroon. CAMTEL and the other 3
communication service provider (MTN, ORANGE and NEXTEL) have created underwater fiber
optic cables and faster internet broadband such as the 3G, 4G and LTE.
Communication service providers

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Another commercial activity in Cameroon is advertisement. Advertisement has helped
and is helping many industries in Cameroon to show their available goods or services and
persuade customers to buy and consume the goods or services. With the availability of modern
means of communication like the internet and, there are various forms of carrying out
advertisement publicity such as: the press, outdoor, radio, fairs, exhibitions, cinema, etc. The
best means of advertisement used today are online platform like: Facebook, WhatsApp, etc.
So trade carried out in and out of the economy of Cameroon are facilitated by those
above services or activities and even more which have not been mentioned above. Trade covers
most of Cameroon’s largest commercial services and provides the highest income to the
government. The declaration of 1990, which Cameroon created a free trade zone to promote
internationally competitive export industries. Maritime transport is now open to any
transporter who is registered under Cameroonian or foreign law serving Cameroonian ports.
But during the recent years the amount of goods imported has always been more than the
amount of goods exported. The main goods exported by Cameroon are agricultural products
such as: timber, cocoa, coffee, banana and oil/petroleum being his most precious exported
goods. While the Goods imported are mostly machines, products and clothes. The exports
carried out by Cameroon makes up 39% of the CEMAC region’s exports, making Cameroon one
of CEMAC biggest exporter. In 2019, Cameroon exported $5.21 billion and imported $6.07
billion worth of goods and services, resulting in a negative trade balance of $86 million,
according to Massachusetts Institute of Technology statistics. Cameroon recorded a trade deficit
of 147.02Billion XAF in March 2023
Communication Market regulator
State owned service provider

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CHAPTER 3:
IMPORTANCE OF THE COMMERCIAL SECTOR OF CAMEROON.
The commercial sector is distinguished primarily through its operation in an economic
market, in which the price system conveys the information necessary to the production,
distribution and exchange of goods and services.
The commercial sector is important for an economy for several reasons, which some can
be enumerated below.
➢ Plays a vital role in the economy and citizens:
• Consumer Satisfaction: The commercial sector caters to the needs and desires of
consumers. It provides a wide array of goods and services that fulfill people’s requirements,
preferences, and aspirations. By understanding and responding to consumer demands,
businesses in the commercial sector play a crucial role in enhancing overall customer
satisfaction and shaping market dynamics.
• The commercial sector plays a vital role in the economy in providing the wants of
citizens and meeting their various needs through varieties of goods and services provided by the
commercial sector.
• Finally, the income producing nature of commercial properties makes them a
comfortable risk for commercial real estate lenders. Regardless of property type, debt is widely
available at generally favorable terms for commercial real estate investor’s payments. And if the
property is purchased at an attractive price, income alone can provide a solid return.
WHY THE GOVERNMENT SHOULD INVEST IN THE COMMERCIAL
SECTOR:
The government should invest in the commercial sector for several reasons which some
will be enlightened. Commercial sector, also known as the business sector or private sector,
plays a crucial role in the economy of any country. It encompasses a wide range of activities
related to the production, distribution, and exchange of goods and services. Acknowledging the
significance of the commercial sector involves recognizing its contributions, impact, and
importance in various aspects. Here are a few key acknowledgements of the commercial sector:

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➢ Drives Economic Growth: The commercial sector is a major driver of economic
growth, since it creates job opportunities, generates income, and contributes to the overall
prosperity of a nation. Through entrepreneurship, innovation, and investment. Business in the
commercial sector stimulates economic development and improves living standards, which also
help in the development of land for commercial. Those benefits are:
• Commercial buildings provide large spaces divided for various business needs. These
commercial building are mostly located at strategic business points of the community.
Which helps those who have a business idea and capital, but need a location to usually
come to buy or rent these buildings for their activities?
• Job Creation: The commercial sector is a significant source of employment. It provides
opportunities for individuals to gain skills, earn income, and contribute meaningfully to the
workforce. Businesses ranging from small enterprises to large corporations employ people.
Whether it is an office, a restaurant, retail, finance, technology, or other commercial
buildings, it generally calls for people who can offer services to them, which can make a
community more appealing to live in.
The commercial sector provides opportunities and generates revenue to the state and
citizens in the following ways:
➢ Opportunities such as after sales service, sales men and advertisement are
possible as commercial buildings are constructed and activities are carried out. Some business
men, who sell goods that need after sales services, but don’t have technicians for it will hire
someone with those technical skills to do it. Some businesses need to be well known to run
well, as such they find some influential people in the society to advertise their business and
some will let those people sell their products and gain commission.
➢ The commercial sector contributes significantly to government revenues through
taxes and fees. The various commercial activities carried out in the various parts of the country
all have to pay certain taxes to the government, as well as most of the people working under
these companies, therefore increasing the revenue of the state. These financial contributions
support public services, infrastructure development, education, healthcare, and other essential

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activities that benefit society as a whole. The tax base generated by the commercial sector helps
fund public initiatives and social welfare programs.
➢ Contributes to the overall development of the country.
Commercial sector contributes to the overall development of the country in the following
ways:
• Innovation and Productivity: The commercial sector fosters innovation and drives
improvements in productivity. Businesses constantly strive to enhance products, services, and
processes, leading to technological advancements and efficiency gains. Innovation in the
commercial sector brings about new ideas, products, and industries that can transform and
improve the overall well-being of the entire society.
• Trade and Global Connections: The commercial sector facilitates trade and fosters global
connections. It enables countries to engage in international commerce, import and export of
goods, retail and wholesale businesses and participate in the global economy. Through trade
agreements, partnerships, and investments, the commercial sector promotes economic
integration, cultural exchange, and opportunities for collaboration on a global scale.
• Socioeconomic Development: The commercial sector has the potential to drive
socioeconomic development by addressing societal challenges and promoting sustainable
practices. Businesses can adopt corporate social responsibility initiatives, promote ethical
practices, and contribute to environmental conservation. Through responsible business
conduct, the commercial sector can actively contribute to the betterment of communities and
the environment.
• Increased competition – the introduction of new competitors in the market creates a
competitive environment that encourages businesses to innovate, thus inspiring growth and
development.
• Reduces poverty – businesses in the commercial sector often require a large workforce,
providing jobs to people who may not otherwise be employed. This helps to reduce
unemployment, therefore reducing poverty.

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• Economies of scale – businesses in the commercial sector are often able to benefit from
economies of scale, reducing costs and making products more affordable. Thus increasing living
standards of the citizens.
• Increased efficiency – businesses in the commercial sector are often able to reduce costs
and make their operations more efficient, leading to higher profits for those involved.
• It contributes to the overall development of a country by attracting investments all over
the world, promoting entrepreneurship and facilitating trade within and outside the country.
• It can also stimulate economic growth and development. By implementing policies and
initiatives that can support the economy, the government can attract foreign investments,
encourage entrepreneurship, and create a favorable business environment. This in turn leads to
the job creation, increased productivity, and higher living standards for citizens.
This can also be seen as Cameroon has had a decade of strong economic performance,
with GDP growing at an average of 4% per year. During the 2004–2008 periods, public debt was
reduced from over 60% of GDP to 10% and official reserves quadrupled to over US$3 billion.
Which most of these occurred due to the increasing commercial activities during those periods
and the large exports carried out.
By developing infrastructures, implementing trade facilitating measures, and providing
support to businesses, the government can attract foreign investments, which will provide
important capital for the development of infrastructures, technology and make the country a
regional hub for commerce for other countries around the world.
❖ E-commerce which is done on online platforms has made great contribution to
the state. E-commerce should be encouraged; since it has helped businesses (especially those
with a narrow reach like small businesses) gain access to and establish a wider market presence
by providing cheaper and more efficient distribution channels for their products or services.
❖ E-commerce potentially needs a Lower Start-up, since the cost to operate
digitally is often less expensive than needing to pay rent, insurance, building maintenance.
Many stores offer a wider array of products online than they carry in their brick-and-mortar
counterparts, and many stores that solely exist online may offer consumers exclusive inventory
that is unavailable elsewhere which help improve the living standard of citizens.

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❖ Furthermore, governments should prioritize digital transformation in the
commercial sector to keep up with changing market trends and consumer demands. Investing in
technology infrastructure and promoting digital literacy will enable businesses to adapt and
thrive digitally in the commercial economy.
❖ More investment should be done under the finance sector, as only about 15% of
Cameroonians have access to formal banking services.
BEFORE

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CHAPTER 4: CASE STUDY:
The commercial sector of United States of America (USA).
While there are numerous interesting facts to life in the USA in the 18th
century, one of
the easiest ones to spot is the transformation of group of minor colonies into a robust new
country that possessed a powerful, wealthy economic middle class and a boundless economic
potential.
The American colonies before entering the commerce were merely engage in
subsistence farming for home consumption. Then later on the Europeans settled on these lands.
The European settlement of North America initially came about from a flurry of various sailors
looking for adventure, better lives, and religious freedom and yet another important element
that factored into many colonist minds was the desire to create their own commercial success.
In its earliest form, this was typically accomplished by the ability to establish a self-sustaining
form, while a minority found further fortune in things like farming or fishing.
However as the colonies especially those on Britain’s 13colonies continued to improve
their lives. Then commercial success began to evolve. One of the defining moments of the 18th
century on N.A was the revolutionary war that gave birth to the U.S. While most accounts of the
war itself largely focused on the balls of the policies, commerce also had an important role to
play here. The growing commercial success of the American colonies had created a strong
middle class of entrepreneurs.

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Although the US was specialized in subsistent farming, but as the success of the
colonies and the new nations grew, the agricultural focused shifted. Instead of
growing/cultivating basic subsistence foods, larger farms began to cultivate other things such
as: cash crops for trading in the world market. The middle colonies soon boasted for of huge
swaths of lands that grew various grains. Further down the coast, the southern colonies tended
to focus on single crop economies like tobacco and indigo. Much of the shift in agriculture focus
was made possible by the development of a host of new agricultural tool as well.
One of the greatest imports that were made by the US in the 1700s commerce was the
over increasing import of slaves (slave trade), which allowed for a consequential increase in
crops, like: sugar, rice, tobacco and eventually cotton. Commercial shipping also became a
critical element of the United States economy. Towns like: Boston, New York City, Baltimore and
Charleston served as booming centers of commerce. In the 18th
century, Americans ports were a
busy place for global trade and commerce as everything from crops to jewelry were traded in
every increasing quantity.
TRADE

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It can be seen trade had been one of reasons the colonies united to form the U.S
economy we know today. Trade keeps our economy open, dynamic, and competitive, and helps
ensure that America continues to be the best place in the world to do business. By the 18th
century, the American colonies were growing very rapidly as a result of low death rates along
with ample supplies of land and food. The colonies were richer than most parts of Britain, and
attracted a steady flow of immigrants, especially teenagers who arrived as indentured servants.
The United States today is by far the world’s largest exporter of services, and America’s
globally competitive service industries including: audiovisual, banking, energy, express delivery,
information technology, etc. These can be seen as U.S. goods and services trade (exports plus
imports) totaled $5.3 trillion during 2017, the U.S. was the world’s largest goods and services
trading nation, with exports of goods and services totaling $2.35 trillion. U.S. exports of services
are also booming, reaching nearly $850 billion in 2019, according to the U.S. Department of
Commerce.
Commerce was the source of the USA’s growth over the years. The benefits of the U.S
in involving into the commercial sector are so many. America cannot have a growing economy
or lift the wages and incomes of their citizens, unless they continue to reach beyond their
borders and sell products, produce, and provide services to the 95% of the world’s population
that lives outside the United States. Trade has helped the U.S. in many ways, which some can be
listed below:
➢ Global economic power: That is, increasing global corporation leads to greater economic
growth; it increases competition and increase cross border investment. The U.S. has a great
economic power as it carries out trade with so many countries around the world, has offered
many incentives to developing countries and has been a source of large foreign investment to
many countries around the world. It also carries out competitiveness which can be seen as the
is competition between U.S. and China.
➢ Jobs: More than 40 million American jobs depend on trade, and trade is critical to the success of
many sectors of the U.S. economy today. Many citizens in the U.S. today use trade as their
source of income.

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➢ Promote business: 98% of the roughly 300,000 U.S. companies that export are small and
medium-sized businesses, and they account for one-third of U.S. merchandise exports,
according to the U.S. Department of Commerce. This shows that trade has helped promote
business to the small towns or rural areas in the economy of the United State.
➢ Financially attractive: That is, trade and its services attract investors to invest in other to make
profit and also spread a good reputation of the country to other countries.
➢ Trade and Farming: American farmers and ranchers also depend on exports. About 25% of U.S.
farm products by value are exported each year. For many crops, such as wheat or almonds,
more than half is sold abroad. U.S. agriculture is so productive there’s no way Americans could
consume this bounty alone.
Amid a renewed focus on boosting U.S. exports, it is important to bear in mind that
imports benefit Americans as well. Importation has also helped the U.S. economy in the
following ways:
➢ They bring lower prices and more choices for American families as they try to stretch their
budgets. Companies also depend on imports for raw materials and competitively priced inputs.
➢ Imports gave the U.S. access to products that would not otherwise be available—such as fresh
fruit in the winter.
➢ Access to imports boosts the purchasing power of the average American household by about
$18,000 annually.
➢ In the U.S., Companies’ imports of intermediate goods, raw materials, and capital goods account
for more than 60% of all U.S. goods imports—lowering costs for manufacturers and other
businesses and helping them hone their competitive edge.
The free trade agreements (FTAs) by the U.S., have indeed brought tremendous
benefits from U.S. to the 20 countries it covers. These countries involved represent
approximately 6% of the world’s population outside the United States, and yet these markets
purchase nearly half of all U.S. exports. However, with regard to manufactured goods, the
United States ran a cumulative trade surplus with its trade agreement partner countries of more
than $200 billion over the past decade (2009-2019).

25. Group 3
The Commercial Sector of China
The history of china can be gotten back right from 8000 BCE, were the Neolithic
agriculture had developed in China. By Neolithic times, the tribes living in what is now the
Yellow River valley were practicing agriculture and by the third millennium BCE, stratified Bronze
Age societies had emerged. Erlitou was followed by the Shang and Zhou dynasties, which
developed a manorial economy similar to that of medieval Western Europe. By the end of the
spring and autumn period, this system began to collapse and was replaced by a prosperous
economy of self-sufficient farmers and artisans during the Warring States period. This
transformation was completed when the state of Qin unified China in 221 BCE, initiating the
imperial era of Chinese history.
The staple crop of the Shang a predominantly agricultural society was millet, but rice
and wheat were also cultivated [citation needed] in fields owned by the royal aristocracy.
Agricultural surpluses produced by royal fields supported the Shang royal family and ruling elite,
advanced handicraft industries (bronze, silk, etc.), and large armies. Large royal pastures
provided animals for sacrifices and meat consumption. Other agricultural products supported
the population of Shang, estimated to be about 5.5 to 8 million people. Analysis of spores and
pollen grains in sediment of Sun Moon Lake suggests that traces of slash-and-burn agriculture
started in the area since 11,000 years ago, and ended 4,200 years ago, when abundant remains
of rice cultivation were found in such period. Many archaeological sites of Neolithic civilizations
were found in the Taipei basin in northern Taiwan. The economic activities during this period,
which cannot be described with detail as there was no written language, were fishing,
gathering, and farming.
Then on after, china started carrying out trade. Foreign trade began as early as the
Western Han dynasty (206 BCE-9 CE), when the famous “Silk Road” through Central Asia was
pioneered by Chinese envoys. During later dynasties, Chinese ships traded throughout maritime
Asia, reaching as far as the African coast, while caravans extended trade contacts in Central Asia
and into the Middle East. Foreign trade was never a major economic activity, because Chinese
emperors considered the country to be entirely self-sufficient.

26. Group 3
In the nineteenth century, European nations used military force to initiate sustained
trade with China. From the time of the Opium War (1839–42) until the founding of the People’s
Republic in 1949, various Western countries and Japan compelled China to agree to a series of
unequal treaties that enabled foreigners to establish essentially autonomous economic bases
and operate with privileged status in China. One classic account of this period is Carl Crow’s 400
Million Customers, a humorous but realistic guide which has lasting insights. Foreign privileges
were abolished when the People’s Republic came into being. Beginning in the late 1970s, China
reversed the Maoist economic development strategy and, by the early 1980s, had committed
itself to a policy of being more open to the outside world and widening foreign economic
relations and trade.
The commercial sector has helped the economy of china in the following ways:
➢ In 1984 the number of agricultural and sideline products subject to state planning and
purchasing quotas was reduced from twenty-nine to ten and which included cereal grains,
edible oil, cured tobacco, jute, hemp, and pigs. This all done to promote trade and it helped
many farmers of those periods.
➢ In 1985 the system of state purchasing quotas for agricultural products was abolished.
Instead, the state purchased grain and cotton under contract at a set price. Once contracted
quotas were met, grain and cotton were sold on the market at floating prices. If market

27. Group 3
prices fell below the listed state price, the state purchased all available market grain at the
state price to protect the interests of producers. This help to save producers who involved in
trade, from having losses.
➢ Restrictions on private business activities were greatly reduced, permitting peasants as well
as cooperatives to transport agricultural goods to rural and urban markets. This also allowed
a rapid expansion of free markets in the countryside and in cities. The number of wholesale
produce markets increased by 450 percent between 1983 and 1986, reaching a total of
1,100 and easing pressure on the state produce distribution network, which had been
strained by the burgeoning agricultural production engendered by rural reforms. This helped
in the economic growth of the country.
➢ During the 1950s China imported Soviet plants and equipment for the development
program of the First Five-Year Plan (1953–57). The acquisition of foreign plants and
equipment enabled China to utilize the more advanced technology of developed countries
to speed its own technological growth and economic development.
➢ Exports earned foreign currency, which was used to fund domestic development projects
and to purchase advanced foreign technology and management expertise. Imports of capital
goods and industrial supplies and foreign loans and investment were used to improve the
infrastructure in the priority areas of energy, transportation, and telecommunications and to
modernize the machine-building and electronics industries.
➢ To earn more foreign currency and to conserve foreign exchange reserves, foreign capital
was also used to expand production of export commodities, such as textiles, and of import
substitutes, such as consumer goods. These changes not only benefited the Chinese
economy but also integrated China into the world economy. This can be seen In 1979 were
Chinese trade totaled US$27.7 billion – 6 percent of China’s GNP but only 0.7 percent of
total world trade, but later In 1985 Chinese foreign trade rose to US$70.8 billion,
representing 20 percent of China’s GNP and 2 percent of total world trade and putting China
sixteenth in world trade rankings.
➢ The most significant economic development during this time period was the establishment
of irrigation systems and hydraulic engineering projects. The agricultural surplus caused by

28. Group 3
these improvements led to the export of rice to mainland China. On the other hand, the
commercial activities continued throughout major trading ports. Tainan, Lukang, and Banka
became the three largest cities in Taiwan.
➢ Legal and institutional frameworks to facilitate foreign investment and trade also were
created. In 1979 China created four special economic zones in Shenzhen, Zhuhai, Shantou
(in Guangdong Province), and Xiamen (in Fujian Province). The special economic zones
essentially were export-processing zones designed to attract foreign investment, expand
exports, and import technology and expertise. In 1984 fourteen coastal cities were
designated “open cities.” These too were intended to attract foreign funds and technology.
➢ Business growth and foreign investment: By 1986 China had over 6,200 foreign-funded
businesses, including 2,741 joint ventures, 3,381 cooperatively managed businesses, and
151 enterprises with sole foreign investment. Of the joint ventures, 70 percent were in
production enterprises (manufacturing or processing) and 30 percent were service
industries (primarily hotels or tourism). Hong Kong provided 80 percent of the joint venture
partners, the United States 7 percent, and Japan 6 percent.
➢ Reduce poverty: the opening of the various industries created jobs for millions of citizens,
therefore reducing poverty and increasing living standards.
Since the engaging of China into commercial activities, China has been the fastest
growing economy in the world since the 1980s, with an average annual growth rate of 10% from
1978 to 2005, based on government statistics. It’s GDP reached US$2.286 trillion in 2005. The
table below shows the average annual growth (in nominal US dollar terms) of China’s foreign
trade during the reform era.
Period Two-way trade Exports Imports
1981-85 +12.8% +8.6% +16.1%
1986-90 +10.6% +17.8% +4.8%

29. Group 3
1991-95 +19.5% +19.1% +19.9%
1996–2000 +11.0% +10.9% +11.3%
2000-05 +24.6% +25.0% +24.0%
2006 +27.2% +19.9% +23.8%
2007 +25.6% +20.8% +23.4%
By 2002, the profits of industrial state-owned enterprises had grown by 163.6%.
China’s total trade in 2006 surpassed $1.76 trillion, which made China the world’s third-largest
trading nation after the U.S. and Germany and In 2013 China surpassed the United States as the
largest trading nation in the world and plays a vital role in international trade and has
increasingly engaged in trade organizations and treaties in recent years. China became a
member of the World Trade Organization in 2001. China also has free trade agreements with
several nations, including China–Australia Free Trade Agreement, China–South Korea Free Trade
Agreement, Switzerland and Pakistan. The business activities of China Northern Industrial
Corporation included the sale of heavy machinery, hardware and tools, and heavy-duty vehicles;
light chemical industry products, such as plastic, paints, and coatings; and high-precision
machinery and optical and optical-electronic equipment. Other corporations offered a variety of
professional consulting services
By 2020, China became the largest trading partner of more than 120 countries. At the
end of that year, China signed major free trade agreements with the European Union as well as
fifteen different Asia-Pacific countries.

30. Group 3
PERSONAL OPINION ON THE COMMERCIAL SECTOR
In my opinion, governments should continue to invest in the commercial sector by
providing support to businesses, promoting innovation, and improving infrastructure. This will
help attract investments, create jobs, and drive economic growth. Additionally, governments
should focus on developing sustainable and inclusive commercial sectors that benefit all
segments of society.
Written by: Date written:
GROUP 3 HND1 30-10-2023