Trade: Aids to Trade, Transportation, Warehousing and Insurance

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Trade means buying and selling. Therefore, one who buys and sells is a trade. Trader is a middleman between producer and consumer.

Image of Trade

Image of Trade

Image of Trade

Aids to Trade (Auxiliaries to Trade)

All activities that facilitate smooth flow of goods from manufacturing centres to the consumption centers are called aids or auxiliaries to trade.

Showing image of Aids to Trade

Aids to Trade

Showing image of Aids to Trade

Transportation:

Image for Transportation

Image for Transportation

Image for Transportation

  • The medium which moves men and materials from one place to another is called transport.

  • Goods are sent to different places where they are demanded.

  • Types of transportation:

    • Land transport – road, rail

    • Air transport – aeroplane

    • Water transport – boat, ship

3 types of transportation

Types of Transportation

3 types of transportation

Warehousing:

Image for Warehousing

Image for Warehousing

Image for Warehousing

  • The goods should be stored carefully from the time they are produced and they are sold.

  • So, warehousing is needed.

  • Storage is indispensable of mass production.

  • Warehouses are also called godowns.

Insurance:

  • The goods may be destroyed while in production process or in transit due to accidents, due to fire or theft, etc.

  • The businessmen would like to cover these risks.

  • The business has to take an ‘insurance policy’ and pay a certain amount regularly, called ‘premium’.

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