EXPLANATION:

ACTIVITIES which are meant for assisting trade are known as auxiliaries to trade. Generally referred to as service because these are in the nature of facilitating the activities relating to industry and trade, transport, banking, insurance, warehousing and advertising are regarded as auxiliaries to trade. Activities playing a supportive role.

Transport

Communication

Warehousing

Insurance

Banking

Advertising

Salesmanship

Mercantile agents

Trade promotion organizations in a country

Global organizations for international trade

All these are interdependent and cannot be seen in isolation. Auxiliaries

to trade or aids to trade also provide necessary support to trade. In the

present LESSON we are concerned with auxiliaries to trade, such as

transport, warehousing, banking and finance, and insurance.

* Objectives

After studying this lesson you will be able to:

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explain the importance of transport;

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enlist the activities related to transport;

•

enumerate various modes of transport;

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explain the meaning of warehousing and its uses;

•

describe the suitable arrangements for storage;

•

explain the functions of warehousing;

•

define the terms ‘Insurance’ and ‘Insurance premium’;

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enumerate the uses of insurance;

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identify the TYPES of risks covered by insurance;

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disucss the role of finance and banking

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describe the term ‘commercial bank’ and its functions