FORM TWO HISTORY AND GOVERNMENT NOTES

TERM I 2023

UNIT 1: TRADE

Definition of trade

Trade refers to the exchange of goods and services between people or countries. Man must have started trading soon after the evolution of the Homo sapiens sapiens. Trade was occasioned by the existence of varying environmental and climatic conditions. Trade arises from the basic human needs such as satisfying food requirements

Methods of trade.

There are two main methods of trade;

Barter trade
Currency trade.
Barter trade

This is the exchange of gods for gods. It is one of the earliest forms of trade that was even taking place during the reign of King Solomon of the Bible. Barter trade emerged from the natural needs of the people. For example, among the Kenyan pre-colonial communities such as the Maasai who kept livestock but did not have grains which the neighbouring kikuyu possessed. Barter trade sometimes even took place within the same community where some people had some special talents that others did not possess. E.g ironsmiths

A form of barter trade known as ‘silent trade’ was practiced in some areas where the two involved communities could not speak the same language. For example, it existed between Morocco and Carthage in 400 BC.Barter trade can still be witnessed in the modern society. For example, Kenya exchanges tea and coffee with petroleum, chemicals and machinery from other countries.

Barter trade however has the following disadvantages;

It may involve bulky goods in the transaction.
There may lack double coincidence. It is difficult always to get the goods one wants.
Lack of standards of deferred payment; if a good was borrowed, it would be difficult to decide whether the same value was returned later or not.
Some goods cannot be sub-divided into smaller units. If one wanted cloth equal to a half a sheep, then he could not divide the sheep into two parts.
Lack of store of value for some goods which cannot be stored for a long time since they are perishable. E.g. milk, vegetables.
Lack of measures of value; a specific quantity of goods cannot be measured vis-à-vis other goods.

Advantages of barter system.

Poor countries without adequate foreign currencies benefit from it by being able to exchange goods they have for what they do not have.
It benefits where money is non-existent.
It avoids wastage as demand and supply tend to equate.
It promotes interaction hence good relationship, peace and stability especially among traditional African societies.

b) Currency trade.

This is a type of trade that involves the use of money.

Money is an item that is mutually recognized as a medium of exchange or a measure of value.

In the pre-colonial times items like Gold dust, cloth, copper rods, and iron and cowrie shells were used as a form of currency.

Advantages of the use of money in trade.

Money is a medium of exchange- it is needed to obtain goods or services.
Money as a measure of value enables units of goods to be bought. A specific quantity of goods can be measured Visa- Vis other goods.
Money is a standard of deferred (future) payments which allows borrowing and lending to take place.
It is a store of value- one is able to defer satisfaction of a want to future times or make provision for one’s want at a future date.
It is a means through which immovable property can be transferred. For example when one sells a house in one city to go and dwell in another.
Money as a unit of account is used as a calculating medium and assigning prices of goods and services.
Money is easily divisible into smaller units. For example, if a product is valued at a lower price, the buyer only pays the agreed cost.
The qualities of money and its functions overcome the difficulties of barter. Money however becomes valuable only when those using it have confidence that it will continue to retain its value during the period it is in possession.

Technology today has made the use of currency easier. There is the use of Visa Card and Mobile money services like Mpesa and Airtel Money to carry out transactions.

Difference between barter trade and trade in which currency is used as a medium of exchange.

In barter trade goods are exchanged for goods/in currency trade, there is use of money as a measure of value.
In barter trade depends on the existence of a double coincidence of needs but in currency method one meets his needs by the use of money.
Items used for barter trade are bulky (some) and inconvenient to handle-and others perishable. Money is not bulky.

LOCAL TRADE

This refers to the exchange of goods between people within the same geographical area such as a village or town.

Origin of local trade.

This form of trade took place between groups of people who produced different goods mainly because of varying ecological conditions. It was motivated by the following factors;

Existence of surplus production e.g. where some community’s harvest was excess; they could sell the excess commodity to carter for shortages elsewhere and to avoid wastage.
Differences in climate and environmental conditions which affected the type of natural resources available in various places/ not all needs of a particular community can be satisfied by the resources available hence trade. The kikuyu of Nyeri had to go to Mathira for their foodstuff requirements during drought periods.
Specialization and improved technology which always creates a need to exchange skills and goods with those who do not have. E.g trade between Mathira kikuyu cultivators and the Mukurwe-ini kikuyu ironmongers and weavers. Some even exchanged skills for money.
Population increase making man to begin to supplement his needs by trading with his neighbors. Sometimes, this trade extended even beyond the local community to the neighbouring community. The Abagusii, for example, acquired hides, milk, snake poison, and pottery items from their Luo Neighbours. Some seasonal markets emerged which enabled traders to meet and exchange goods on particular days of the week.

Factors that facilitated development of local trade.

Availability of capital for investments in trade – to generate more wealth.
Specialization and improved technology, e.g. specialization in production, in technology and in marketing. Sometimes people even exchanged their skills for money.
Demand and supply; the growing demand for goods and services was met by increase in supply.
Enterprise; many people began to take greater risk and invested more in trade.
Peace and stability. This enabled people to interact more and hence the growth and expansion of trade.

Impact of local trade

There was development of market places which specialized in certain items like pottery, iron tools and baskets. Others specialized in livestock
Local trade helped to strengthen bonds between people in the same locality. It even enhanced intermarriages and other social functions.
Local trade satisfied the requirements of the communities in terms of tools, foodstuffs, medicinal herbs etc.
Local trade enhanced acquisition of new products that a particular community did notproduce.
There was an improvement of transport routes. Some markets were strategically located along transport routes.
In centralized governments like Buganda, Bunyoro-Kitara, Mali, Ghana and Wanga, the local markets that developed due to the trade became important sources of revenue for the kingdoms. In Bunyoro-Kitara for example, the Omukama had officers whose duty was to collect taxes from the market places.
Many people were brought together through trade. In Bunyoro–Kitara, communities like the Alur, Acholi, Langi, Basoga, Baganda, Kumani, Iteso and Banyankole interacted through trade.

NB; the greatest danger to the local traders was that they risked being attacked by hostile communities and wild animals.

UNIT-2-TRANSPORT-mwalimuplus.co_.ke_.pdf

UNIT 3 COMMUNICATION

UNIT 4 DEVELOPMENT OF INDUSTRIES

UNIT 5 URBANIZATION

UNIT 6 ORGANIZATION OF AFRICAN SOCIETIES.

UNIT 7 CONSTITUTIONS AND CONSTITUTION MAKING

UNIT 8 DEMOCRACY AND HUMAN RIGHTS

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