Aids

to trade pdf

0 ratings0% found this document useful (0 votes)22 views1 page 6 Aids to Trade in Commerce are listed and explained in this article. We hope you find it informative, and able to meet the demands of your research. Aids to Trade in Commerce – Photo Source: Read Also: Why We Study Economics Aids to trade simply mean those activities which help,
facilitate, and improve activities of trade or commerce. It can also be called auxiliaries to trade and some of these aids are; Transportation, insurance, banking, advertising, communication, and tourism. In this article, we will quickly look at the various aids to trade-in details so that you may be able to fully understand the terms used in relation to aids
to trade. Aids to Trade The following are Aids to Trade: 1. Transportation As everyone knows, transportation is the movement of raw materials, finished goods, and passengers from one place to another either by road, sea, pipe, rail, or air by the medium of cars, trucks, boats, trains, or planes. It facilitates and hastens the movement of raw materials,
finished products, and people from the point where goods are produced to the point where the produced goods are consumed. Read Also: Features of the Factors of Production 2. Insurance This is the policy that contains the protection and shield of lives and properties, preventing them from loss or liabilities, risk or damages which are suffered in the
day-to-day activities of the operation of a business. It has to do with the pool of risk. It does an important and vital role in the life of a business by mitigating the risks associated with the business. As I said, There are many policies that are usually listed in the insurance contract.

Some of the policies are life assurance, burglary insurance, marine insurance, and so on. 3. Banking A Bank is a financial institution that accepts deposits of money either in cash or Cheque as well as other valuables which includes certificates and jewelry from the public in order to keep them safe for future use. Usually, a bank I’d aid to trade
because It also provides funds that are needed to undertake day-to-day activities of the business. Examples of banks are Central banks, Commercial Bank, Merchant Bank, Mortgage Bank, and Development Bank. The mother of all banks in Nigeria is the Central bank of Nigeria. Read Also: Factors that Determine the Volume of Production 4.
Warehousing A Warehouse can be defined as a place where goods that have been produced are kept until they are needed by the consumer.
It is an aid-to trade that enables the producer to have a regular supply of goods and also enjoy fixed price (i.e. no fluctuation in price since goods have been produced in advance.) If there is no warehouse, companies will have to produce goods only when it is needed and this would have greatly affected the price of the goods depending on the
economy of the nation at a stipulated time. 5. Advertising For trade to be possible, advertising cannot be left out. Advertising is the process of creating awareness in the minds of the public about the existence of a particular product. It usually increases the volume of sales of a business.
This is because advertising enables a large number of people to know about a product and as a result of this, the total sales of the business will increase rapidly. Read Also: Types and Importance of Capital 6. Communication Communication may be defined as sending and receiving meaningful information from one place to another. It does not take
place if the information passed is not meaningful. Communication aids trade in the areas of letters emails, telephoning, courier services, internet, etc. Back to: BUSINESS STUDIES JSS2 Welcome to Class !! We are eager to have you join us !! In today’s Business Studies class, We will be discussing Aids to Trade. We hope you enjoy the class! What are
the aids to trade in commerce? Meaning Trade or exchange of goods involves several difficulties, which are removed by auxiliaries or supplementary supports known as aids to trade. Here, aids to trade refer to all those involved activities, which directly or indirectly facilitates the smooth exchange of goods and services. Aids to trade include
transport, communication, warehousing, banking, insurance, advertising, salesmanship, mercantile agents, trade promotion organizations in a country and global organizations for international trade. These important auxiliaries ensure a smooth flow of goods from producers to the consumers.
What are various aids to trade? The importance of aids to trade in commerce is explained in the following points: In modern times, there is a vast distance between the centres of production and the centres of consumption. This difficulty is removed by an important aid to trade known as transport. Transport creates place utility. There are several
types of transport such as air, water and land transport. The geographical distance between producers and consumers is removed with the help of transport. The three main modes of transport: Land: Road and Railway Water: River and Sea and Canals Air: Airway Communication means transmitting or exchange of information from one person to
another. Communication can be oral or in writing. It is necessary to communicate information from one to another to finalize and settle the terms of sales such as prices of goods, discount allowed, the facility of credit, etc. Modern means of communication like telephone, telex, telegraph, internet, email, teleconference, etc., play an important role in
establishing contact between businessmen, producers and consumers. Communication is the first crucial step in initiating a trading activity. Warehousing is an act of carefully storing goods in warehouses to sell or distribute them later. Warehousing is essential because there is a time gap between production and consumption. In other words, goods,
which are produced at one time, are not consumed at the same time. Hence, it becomes necessary to make arrangements for storage or warehousing. Agricultural commodities like wheat and rice are seasonal in nature but are consumed throughout the year, on the other hand, goods such as umbrellas and woollen clothes are produced throughout the
year but are demanded only during particular seasons. Therefore, goods need to be stored in warehouses until they are demanded. So, warehousing creates time utility by supplying the goods at the right time to the consumer. Insurance reduces the problem of risks involved in the trade.
Businesses are subjected to risks and uncertainties. These are inevitable in the field of business. Risks may be due to fire, theft, accident or any other natural calamity. Insurance companies who act as risk bearer cover such risks. Insurance tries to reduce many risks by spreading them out over a greater number of people. The rate of an insurance
premium depends upon the types of risk and the period for which the risk is covered.

Banking solves the problem of finance. Businessmen receive money and also pays money in large amounts. It is risky to carry a large amount of cash from one place to another. Here comes banking as a solution. Banking and financial institutions solve the problem of payment and facilitate a smooth exchange between buyer and seller. The
businessmen may also require short-term and long-term funds. Banks provide such finance to businessmen. Banks also advance loans in the form of overdraft, cash-credit and discounting of bills of exchange, etc. Advertising fills the knowledge gap and it solves the difficulty of information. Exchange of goods and services possible only if producers can
bring the products to the consumers. Advertising and publicity are important media of mass communication. Advertising helps consumers to know about the various brands manufactured by several manufacturers. The media used to advertise products are radio, newspapers, magazines, tv, the internet, billboard, etc. We have come to the end of this
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