Explore topic-wise InterviewSolutions in .

(1) Internal trade 

(2) International trade 

(3) Internal trade 

(4) International trade 

(5) International trade

1. Speciality shops

2. Small Scale Fixed retailer.

1. Cheap Jacks are mobile retailers. 

2. They do not have fixed place of business. They hire temporary place of business in residential area for short period. 

3. They go on changing their place of business.

4. Thus, they are not reliable and dependable.

1. It is a modern form of trade which is done through internet. 

2. It is becoming move popular in Indian market. 

3. It saves time and cost of management. 

4. E.g. Flipkart, Amazon, Shop clues, Myntra, etc.

(i) True.

(ii) True

(iii) False

(iv) True

The stages involved in export trade are Preliminary Stage, Pre-shipment Stage, Shipment Stage and Post Shipment Stage.

According to William Stanton – “Retail trade includes all activities directly related to the sale of goods and services to the ultimate consumer for personal and non-business use”.

Trade creates link between producers and consumers.

1. When goods are sold in smaller quantities to the final consumers, then it is called as retail trade. 

2. The person doing retail trade is called as retailer.

(i) True

(ii) False

(iii) False

(iv) False

(v) False

1. particular line of goods

2. fixed

Correct Answer is Wholesaler

The marketing functions of wholesaler includes assembling, warehousing, transporting, grading, packing, advertising and financing

Channel of distribution in trade consists of Producer to Wholesaler, Wholesaler to Retailer and Retailer to Consumer. 

Producer → Wholesaler → Retailer → Consumer

A person who does retail business is called retailer. .

Correct Answer is Cheap Jacks

1. Trade carried on between two or more foreign countries is called foreign trade. 

2. Foreign trade depends as political relations between two countries. 

3. Procedure of foreign trade is complex, difficult and lengthy. 

4. It consists of import trade and export trade.

1. A letter of credit is a guarantee issued by the importers bank that it will honour the payment upto certain amount of export bills to the bank of the exporter. 

2. It is generally demanded by the exporter country. 

3. It gives assurance to exporter country about its payment of goods exported.

Correct Answer is Retailer

1. A wholesaler is both a buyer and a seller.

2. He is in a position to maintain price stability by balancing supply and demand factors. 

3. By suppling regular goods to the retailer, he solves the risk of shortage and price fluctuation is reduced. Thus, wholesaler maintains price stability.

Second hand goods shops sells second hand and used goods.

Features of One Price Shop:

1. Location: One price shops are located in busy centers of the city such as busy trade centers, near railway stations, bus stops and other crowded places. 

2. Variety of Goods: In one price shop, the customers are given wide scope to make selection of goods of their choice. However, the price is uniform but quality of the goods may be different. 

3. Cash Sales : In this shop goods are sold on cash basis only. No credit facility is given to the customers. So there is no risk of bad debts. 

4. Low Priced Articles: In one price shop, the goods are sold to customers for domestic use at lower prices e.g. stationery, cutlery, toys, plastic goods, etc. 

5. Uniform Prices : All the articles of goods are sold in one price shop at the same price. The customers have no scope for bargain in this shop. 

6. Business Policy: In one price shop, the policy of buying and selling of goods of all the shops are the same one.

Modern shopping mall is an American term.

Correct Answer is  Super Market

Departmental store

C & F agent is a custom house agent who is responsible for forwarding of goods in export procedure.

Departmental Stores accepts credit cards payment.

Entrepot trade is referred to as a seaport or warehouse where goods are imported for storage or process before re-export

A person engaged in retail trade is called as retailer.

Features of Retailers:

1. He acts as a link between the wholesaler and consumers. 

2. He generally operates in the local markets. 

3. He deals in large variety of goods. 

4. He sells the goods in smaller quantity as per the need of consumer. 

5. He requires less investment as he deals in smaller quantities. 

6. He bear less risk and earns low amount of profit as compared to wholesaler. 

7. He provides various important services to wholesaler as well as consumers.

The oldest type of retailers are – Hawkers and Peddlers.

(i) (b) Wholesaler

(ii) (a) higher

(iii) (b) large

(iv) (b) last

(v) (a) manufacturer

(vi) (c) imported by India

1. Exporter Payment

2. Household Articles

3. Cheap Jacks.

(i) (c) shipping bill

(ii) (b) Peddlers

(iii) (b) Market Traders

(iv) (b) Specialty Shop

(v) (b) Super Market

Small scale fixed retailers are those who conduct their business operations on a small scale with variety of goods at a fixed place.

Fixed shop retailers are those retailers who have a fixed place for their business.

Retailers provides services to: 

(A) Customers and 

(B) Wholesaler

(A) Services of Retailers to Customers: 

1. Variety of Goods : Retailer keep different brands of goods which helps the customer to choose.

2. After Sales Services : After sales services are given for a particular period, which is known as guarantee period for costly and durable goods such as refrigerators, TV. etc. Such services create confidence in minds of consumers for further purchases. 

3. Regular Supply of Goods : Retailer stocks the goods sufficiently which are required by the customers and customers purchases the goods whenever needed. 

4. Credit Facilities : Retailers provides credit facility to customer which helps him to grow up sales and also it is convenient for the customers to purchase goods. 

5. Home Delivery : Retailer provides home delivery service to the customers which helps him to maintains permanent relationship with the customers.

6. Information : Retailer is a link between manufacturer and consumer. He provides valuable information from the customers to the manufacturer so that he can modify the product as per the likes and dislikes of the customers. Corpplaints regarding defects in goods, improper functioning of the product, constant break down, etc. are passed on to the manufacturers.

7. Local Convenience : Retailers are generally located near residential areas. Hence, customers can buy the goods whenever they require. 

8. Improves Standard of Living : Retailers help customers to increase their standard of living by making available all the latest types of goods produced.

9. Sale of Perishable Goods : Perishable goods like milk, meat, fish, vegetables, etc. require quick distribution. Hence, retailer provides this facility as per customers requirement.

(B) Services of Retailers to Wholesaler:

1. Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship. 

2. Helps to Distribute : Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function. 

3. Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc. 

4. Financing: Wholesaler collects order from customers and take advances from them. Then places order to manufacturer. Retailer collects sales proceeds from customers and passes it to the wholesaler and finally it reaches the manufacturer. 

5. Attracts Consumers : Retailer makes an advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.

1. The Consumer Protection Act has been enacted to protect the consumers from fraudulent traders supplying sub-standard products. 

2. Many advertisements make exaggerated statements to cheat the consumers and these advertisements use incorrect information. 

3. The Consumer Protection Act empowers consumers with their rights and duties. Consumers have right to complain and seek redressal.

When the value of exports and imports is almost same, it is called balanced balance of trade.

Dhondiba’s college-going son realised that the agricultural commodities sold by his father lacked proper presentation and marketing. So he adopted modem marketing practices like cleaned the commodities well and packed them nicely. He then got in touch with the supermarket in the town. The supermarket was impressed with the quality of Dhondiba’s products, they advertised the farm product and kept it for sale in the mall. Dhondiba’s commodities were in great demand and sold at higher prices than before.

For any commodity to be accepted in the market and fetch a better price, it should have an appropriate presentation. The price of the commodity is determined by its quality, its grading and how it is presented before the customer. Dhondiba’s son who was educated, realized this and took the necessary actions in time which helped Dhondiba to fetch better price.

The main functions of the European Union are:

• Establishing an integrated market in member nations amongst Europe. 
• Free flow of goods, services and capital in Europe. 
• Custom duties have been cancelled on exchange of goods within members.
• Common ‘Euro’ currency for the member countries.

Correct option is (a) EU

• In ancient and medieval periods, trade was done through barter system.
• Barter trade means exchange of commodities for commodities without using money, is a medium. 
• For eg. grains in exchange of work done or salt exchanged for oil. 
• But it created the problem of estimating the price of a commodity correctly. As a result, currency started being used.

The importance of trade are:

• Trade is an important economic activity. 
• The economic life of people is dependent on each other. 
• No region or country is self-sufficient. 
• Trade between two regions is necessary to fulfill the needs of the people. 
• As each region has different geographical conditions, each region produces specific commodities.

1. Supermarket is a large scale retail organization specialising in necessaries and convenience goods. 

2. There is no salesman or sales assistants. 

3. The customers themselves are guides to their shopping efforts. Therefore, supermarkets are called “self service stores”. 

4. Thus, self-service is the features of super market.

When there is exchange of services, it is known as invisible trade.