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Difficulty: HardInter-relationship Between Industry, Commerce, and Occupation

A rubber plantation in Edo State harvests crude latex, which is transported to a factory in Ogun State and processed into motor vehicle tyres. These tyres are stored in warehouses and distributed to retailers nationwide using commercial bank credit and transport services. Which of the following best explains the inter-relationship between industry, commerce, and occupation in this economic chain?

  1. Industry creates form utility by extracting latex and manufacturing tyres, commerce provides time, place, and possession utility through distribution and financial auxiliaries, while specialized occupations supply the human labor across all stages.Answer
  2. B
    Industry is responsible for raw latex extraction and tyre production, whereas commerce is strictly confined to the buying and selling of tyres between wholesalers and retailers.
  3. C
    Harvesting latex and manufacturing tyres both represent secondary industrial operations, while warehousing and commercial banking represent direct service occupations.
  4. D
    Banking and transport services constitute direct personal occupations offered to factory workers, while latex harvesting and tyre manufacturing belong to commercial occupations.

Answer

Industry creates form utility by extracting latex and manufacturing tyres, commerce provides time, place, and possession utility through distribution and financial auxiliaries, while specialized occupations supply the human labor across all stages.
The correct answer accurately synthesizes the roles of all three concepts: industry changes the raw latex into tyres (form utility), commerce handles storage, banking, transport, and selling (time, place, and possession utility), and specialized occupations provide the manpower required across both sectors.

Step-by-Step Solution

1
Analyze the industrial phase in the production chain
Harvesting crude latex is a primary (extractive) industrial activity, while transforming it into vehicle tyres in a factory is a secondary (manufacturing) industrial activity. Together, they create form utility.
Industry encompasses extraction and manufacturing activities that alter raw materials into usable goods.
2
Analyze the commercial phase in the production chain
Warehousing (time utility), transport (place utility), banking, and trade (possession utility) bridge the gap between tyre manufacturers and consumers.
Commerce includes trade (buying and selling) as well as all auxiliaries to trade (transport, warehousing, banking) that facilitate exchange.
3
Analyze the occupational roles across the chain
Plantation workers, factory engineers, drivers, warehouse supervisors, and bank officers represent the distinct occupations that sustain industrial and commercial activities.
Occupation refers to the specific economic activity or job individuals engage in to earn a living within industry, commerce, or direct services.

Key Concept

Inter-relationship Between Industry, Commerce, and Occupation
Estimated Time:2m 0s
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Inter-relationship Between Industry, Commerce, and Occupation