Functions of Trade Association
A trade association is an organization or group that is funded by businesses in a particular industry. The co-operative organization, committee, or associates are created by the business people engaged in the same business or industry with a view to extending their business, removing barriers, saving self-interest, and overall development. The association of this type formed by the producers or manufacturers is also known as the trade association. These are non-profit organizations whose primary purpose is to provide different learning tools for businesses in a particular industry. The main functions of a trade association are:
- Educating members so as to improve efficiency.
- Preventing cut-throat or unfair competition.
- Promoting and extending trade through ‘legislative work’.
The purpose of a trade association is to set laws and provide extensive knowledge to companies within the industry. The trade associations perform the following functions:
- Helping the members by publishing reports on the market price of the product and other market conditions.
- To secure co-operation and coordination among members and to provide market information to members with regard to customer preferences, expectations, market opportunities, etc.
- Trying to remove harmful competition among the members and try to introduce constructive competition and improve the quality of the product.
- Making the arrangements for the same type of price and production cost measurement in all the member organizations.
- Action as an arbitrator in case of solving conflicts between the members. All of the businesses work together to help solve problems and come up with solutions to industry-related issues.
- Providing information relating to emerging business opportunities. It also provides the member with the necessary information about the product and the competitive product.
- Providing various price reduction facilities in case of productions and distributions.
- Acting as a representative to the Govt. and gives the advice to improve the related sector.
- Helping the govt. by formulating trade policies and send representatives to serve on various committees and boards set up by the government.
- Ensuring that members do not indulge in unfair trade practices and providing references with regard to the reputation and creditworthiness of members.
- Playing an important role in case of maintaining harmonic relations between the employer and employees.
- Assisting in establishing positive relations between the organization and the buyers and the general citizens.
- Rendering advice on technical matters and legal issues and serve as a forum where members can settle their disputes.
- Undertaking advertisements to promote the industry and prescribe a code of ethics with a view to promoting ethical behavior.
- Conduct seminars or workshops on new legislation, the budget, international business developments, etc. and conduct market research and provide information to members.
A trade association is an institution that groups many businesses from certain industries to increase political influence and create networking opportunities. Thus the trade associations are engaged in solving various problems in there related to the doctrinal, sector and in preventing any further problems to arise. They also help in the overall industrial development of the country. Its members are industry participants that meet to tackle different subjects related to their work field.