Trade: Aids to Trade, Transportation, Warehousing and Insurance (For CBSE, ICSE, IAS, NET, NRA 2022)

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Trade

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

Trade

Aids to Trade (Auxiliaries to Trade)

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

Aids to Trade

Transportation

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 – Aero plane
    • Water transport – boat, ship
Types of Transportation

Warehousing

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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